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Bangladesh keen to follow Sri Lankan economic role model
Bangladesh is watching with interest and excitement the economic progress Sri Lanka is targeting to achieve, following the restoration of peace and stability. Bangladesh is eager to follow Sri Lankan economic policies to realize the same, Bangladesh Finance Minister Abdul Maal Amamuith said.
In an exclusive interview with the Mirror Business, Amamuith said Bangladesh economy is still trying to come to terms with the repercussions brought by the global economic turmoil that took place during 2008 / 09.
Need for modernization
Our banking sector is weak and not up to the expected standard. The local banking sector has to be diversified and modernized as it is still governed by the policies and regulations introduced by imperialists. The real estate sector and the Dhaka Stock Exchange need a complete overhaul, if Bangladesh to achieve a rapid progress. I believe Sri Lanka could help us in this field as she has gone a long way in these fields since independence, Amamuith pointed out.
The acute energy shortage is hampering the emergence of new markets and industries in Bangladesh and suggested that Sri Lankan investors have vast opportunities in Bangladesh in these sectors. Only the fabrics and garment sector have recorded a satisfactory progress in the last few years, recording 77% of export earnings.
In April, 2010, USA-based ratings agency Standard and Poor awarded Bangladesh a BB for a long term credit rating which is below Sri Lanka and India. Although two thirds of Bangladeshis are farmers, more than three quarter of Bangladeshs earnings come from the garment industry which began attracting foreign investors.
He expressed hopes that President Mahinda Rajapaksas three-day state visit to Bangladesh last week will pave the way to create an added enthusiasm among investors in both countries.
There has to be a constant dialogue between trade representatives and trade chambers of the two countries to sort out pros and cons of trade barriers and tariffs, he stressed.
Growth obstacles
Obstacles to growth in Bangladesh include frequent natural disasters like cyclones and floods, inefficient state owned enterprises, mismanaged port facilities, a growth in the labour forces that has outpaced jobs and insufficient energy resources such as natural gas and power supplies.
Sri Lanka could help to tackle the energy problems in Bangladesh, as she has almost achieved self-sufficiency in power. We can learn from Sri Lanka about the speedy implementation of successful economic reforms.
In the energy sector, natural gas acquires 70%, diesel (thermal) power 25% and hydro power 5% in Bangladesh. We have a shortage of about 1,000 megawatts in the power supply and Sri Lankan investors are welcomed to this sector. No considerable investment had been infused into the rural sector during the last 10 years , Amamuith emphasized.
Another pressing problem that hampers the progress in Bangladesh is corruption. Corruption is widespread in all sectors.
The dense population is another drawback. Bangladesh has five metropolitan areas that inhabit more than 700,000 people. There are nearly 13 million citizen in the Dhaka metropolis alone, and Chittagong, Khulna, Narayaganji and Rajshahi the population is over 1 million (in each metropolis). Finance Minister Amamuith predicted a 7% growth for 2011 and added that the main targets for the next few years would be to increase the power supply, added incentives to the agriculture sector and rural infrastructure.
B
Bangladesh is watching with interest and excitement the economic progress Sri Lanka is targeting to achieve, following the restoration of peace and stability. Bangladesh is eager to follow Sri Lankan economic policies to realize the same, Bangladesh Finance Minister Abdul Maal Amamuith said.
In an exclusive interview with the Mirror Business, Amamuith said Bangladesh economy is still trying to come to terms with the repercussions brought by the global economic turmoil that took place during 2008 / 09.
Need for modernization
Our banking sector is weak and not up to the expected standard. The local banking sector has to be diversified and modernized as it is still governed by the policies and regulations introduced by imperialists. The real estate sector and the Dhaka Stock Exchange need a complete overhaul, if Bangladesh to achieve a rapid progress. I believe Sri Lanka could help us in this field as she has gone a long way in these fields since independence, Amamuith pointed out.
The acute energy shortage is hampering the emergence of new markets and industries in Bangladesh and suggested that Sri Lankan investors have vast opportunities in Bangladesh in these sectors. Only the fabrics and garment sector have recorded a satisfactory progress in the last few years, recording 77% of export earnings.
In April, 2010, USA-based ratings agency Standard and Poor awarded Bangladesh a BB for a long term credit rating which is below Sri Lanka and India. Although two thirds of Bangladeshis are farmers, more than three quarter of Bangladeshs earnings come from the garment industry which began attracting foreign investors.
He expressed hopes that President Mahinda Rajapaksas three-day state visit to Bangladesh last week will pave the way to create an added enthusiasm among investors in both countries.
There has to be a constant dialogue between trade representatives and trade chambers of the two countries to sort out pros and cons of trade barriers and tariffs, he stressed.
Growth obstacles
Obstacles to growth in Bangladesh include frequent natural disasters like cyclones and floods, inefficient state owned enterprises, mismanaged port facilities, a growth in the labour forces that has outpaced jobs and insufficient energy resources such as natural gas and power supplies.
Sri Lanka could help to tackle the energy problems in Bangladesh, as she has almost achieved self-sufficiency in power. We can learn from Sri Lanka about the speedy implementation of successful economic reforms.
In the energy sector, natural gas acquires 70%, diesel (thermal) power 25% and hydro power 5% in Bangladesh. We have a shortage of about 1,000 megawatts in the power supply and Sri Lankan investors are welcomed to this sector. No considerable investment had been infused into the rural sector during the last 10 years , Amamuith emphasized.
Another pressing problem that hampers the progress in Bangladesh is corruption. Corruption is widespread in all sectors.
The dense population is another drawback. Bangladesh has five metropolitan areas that inhabit more than 700,000 people. There are nearly 13 million citizen in the Dhaka metropolis alone, and Chittagong, Khulna, Narayaganji and Rajshahi the population is over 1 million (in each metropolis). Finance Minister Amamuith predicted a 7% growth for 2011 and added that the main targets for the next few years would be to increase the power supply, added incentives to the agriculture sector and rural infrastructure.
B
