Sri Lanka is a nation wandering without a clear development strategy, according to Professor Priyanga Dunusinghe from the Department of Economics at the University of Colombo. He expressed concern that despite expectations for the government to present a budget based on a structured five-year plan, such a framework appears to be missing.
Speaking at a seminar held in Colombo, organized by the Sinhala Service of the China Media Group under the theme “The Importance of a Planned Economic and Social Program,” Professor Dunusinghe emphasized the need for consistent national policies rather than constantly changing economic strategies.
He highlighted China’s economic approach as a model for developing countries, noting that China’s progress demonstrates how combining market mechanisms with government intervention can achieve substantial growth.
The professor also referred to the recent state work report presented by the Chinese government to the National People’s Congress of China, which laid out economic development goals for 2024, including a targeted five percent GDP growth. According to him, China’s ambitious goals reflect its determination to overcome global trade challenges, particularly those influenced by Western countries led by the United States.
“In the past, it was said that if America sneezes, developing countries get pneumonia. But today, China is showing that high economic growth can be achieved without being entirely dependent on Western economies,” Professor Dunusinghe remarked.
He pointed out that China is moving towards policy flexibility to adapt to a rapidly changing world, whereas Sri Lanka remains stuck in outdated economic policies from the 1950s and 60s. Many Sri Lankan policymakers, he claimed, are reluctant to pursue meaningful reforms and prefer to maintain old strategies rather than confront new realities.
Professor Dunusinghe praised China’s ability to lift 800 million people out of poverty, not by distributing subsidies, but by driving economic growth to rural areas through infrastructural improvements and technological advancements. While roads and transportation were critical in the past, telecommunications now play a central role in economic development.
“China has demonstrated that poverty reduction comes through economic growth, not subsidies. Developing countries like Sri Lanka must focus on creating growth opportunities rather than just handing out aid,” he stated.
The professor warned that Sri Lanka’s failure to establish a coherent economic plan leaves it aimless among developing nations. He expressed disappointment over the government’s inability to present a well-defined economic plan, even as a five-year framework, which could provide direction for the nation’s growth.
“It’s time for Sri Lanka’s leaders to open their eyes to reality. Without a structured plan, the country will continue to drift aimlessly,” he concluded.
