Rating Agency Malaysia Berhad (RAM), Malaysia`s premier credit rating agency yesterday highlighted that Sri Lanka should concentrate more in gaining a political stability which will lead to economic development.
RAM s Group Chief Economist Yeah Kim Leng conducting a media workshop for journalists stated that high double-digit inflation would remain a major threat but the anticipated widening of budget deficit and current account deficit during the year can be considered as a temporary trend which is expected to decline by 2009.
Sri Lanka being more open and with a higher per capita income, can harness the forces of regional dynamism to accelerate its growth as in the case of Malaysia. Political stability is a sine quo non on today s highly competitive environment where nations compete for FDI, he explained.
Leng further said that Sri Lanka s economy is projected to grow at a moderate pace of 5.8% in 2008 and 6.1% in 2009.