"Macro-economic stability is crucial for sustained economic growth," Kuroda said.
Sri Lanka may be able to increase growth in the short run by increasing spending and reducing taxes. But in the medium to long run if there is no prudent and sound fiscal policy, you cannot have sustained growth, Kuroda said.
"This has been shown many times all over the world, including the recent debt crisis in some European countries." "With the end of the conflict and ensuing peace Sri Lanka can look forward to prosperous times ahead," Kuroda told reporters in Colombo after visiting ADB funded projects in fomer war torn areas and meeting President Mahinda Rajapaksa.
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"Sri Lanka is a country with immense potential to become a vibrant and prosperous country, and inclus