The Government has predicted a 4-4.5% growth rate for 2020, doubling from the 2.5 % for 2019, Treasury Secretary Sajith ‘SR’ Attygalle told the Sunday Observer yesterday.
It is obvious that the 2019 growth has dipped due to the adverse economic conditions prevalent in the country, predominantly due to the aftermath of the Easter Sunday carnage resulting in lack of investor confidence and the adverse tax policies of the former regime. As we have provided benefits to the Government and the private sector, we are hopeful that the 2020 economic growth rate will be around 4.5%, he said.
“Now that we have given tax incentives, we are hopeful that the SME sector would pick up and we as the Government, will provide more incentives to the banking sector as well,” he said.
He said the security situation has improved which should fortify the confidence of the business community but we have to give them breathing space.
The growth and taxes will also improve with these adjustments and the non performing sectors would start performing, he said.