Sri Lanka should continue investments, improve skills, rule of law: ADB chief

June 18, 2014 (LBO) - Sri Lanka should look at private partnerships to expand infrastructure, reform state enterprises and strengthen the investment climate by improving rule of law and governance, Asian Development Bank chief Takehiko Nakao said. Sri Lanka's government is investing about 6 percent of gross domestic product in physical infrastructure which was higher than some countries in the region, and was also fast rebuilding war-torn areas, he said.

Sri Lanka should look at public private partnership to continue physical infrastructure investments, Nakao said.
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Sri Lanka's growth was also averaging 7 percent and in areas where a war ended in 2009 it was about double that, which was remarkable, he said.
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The ADB was forecasting a growth of 7.
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5 percent for 2014 and 2015 for Sri Lanka.

ADB was also backing the government efforts to improve skills of the labour force and also use the country's geographical location to become a logistics hub, he said.

Sri Lanka had also stable macro economic conditions now with low inflation, and stable exchange rate, which should be maintained, Nakao said.

Sri Lanka's inflation rose and the currency plunged in 2012 after the government subsidized energy with bank loans ultimately accommo