National Economic Development Strategy (NEDS)

A summary of the NEDS formulated by the SLEA in consultation with the public and corporate sectors in the country and submitted to the relevant authorities and the trade chambers is as follows:

The main objectives of the NEDS are to increase the real incomes of the people through an expansion of output around 8-10% per year, reduce income disparities and alleviate poverty. It proposes four overall strategies for this purpose. It is hoped that supplementing   ‘Mahinda Chintana- Idiri Dekma’ with the NEDS will help the government to exploit the opportunities that will materialize in the post war period for economic development to the maximum.

Strategy 1 deals with ways and means of bringing about macroeconomic (fiscal and monetary) stability to create an environment for economic agents to maximize income and welfare by preventing competitiveness eroding price distortions that would arise from inflation and unsustainable external accounts.

Strategy 2 is to provide neutral incentives to lead to the best allocation of resources by letting most prices reflect their resource costs such that the country could meet the competitive challenges that could arise from anywhere in the world.

Strategy 3 is to develop social and physical infrastructure facilities such as roads, ports and social infrastructure such as health and education to enhance the country’s productive base and strengthen physical and human resources to realize the full potential of the country’s productive capacity to lead to the highest possible wellbeing of the people and further enhance the country’s ability to compete with the rest of the world.

Strategy 4 deals with good  governance to establish a law abiding and harmonious society as well as   depoliticized  independent  institutions that are efficient, fair  and accountable to provide quality public services and be attractive to urgently needed  domestic and foreign investments . Strong institutions that are depoliticized and neutral would also enable the proper monitoring of the various strategies and programmes.

Part 2 of this document indicates the activities that are necessary to implement the strategies.
(This version formulated on 10/07/10 is now being revised.)