Sri Lanka is seeking to become an international hub in the South Asian region and attract more foreign investments next year to boost its economy.
The Asian Development Bank (ADB) said in its latest report that the election in January of a new president and the change in government, as well as the prospect of parliamentary elections later in the year, slowed economic activity as investors adopted a wait and see approach. With political uncertainties now diminished, private sector investment is expected to revive, the ADB said.
"In 2015, there had been a shift in the priorities because we had promised a lot of relief going into the elections in January. We also had issues with some ongoing projects, so those projects were stalled for some time," Deputy Foreign Minister and leading economist Dr. Harsha De Silva told Xinhua.
"So that pace of construction-led development was shaken a bit until things were put back in order. So we did not see that high growth that we saw for the past couple of years in the construction sector. But other than that I think things went reasonably well as our overall growth has not seen a drastic fall as spoken about by some."