The World Bank has forecast a decline in the development of Sri Lanka’s construction industry due to the new government’s attempts to re-evaluate infrastructure development projects and hence the island’s economic growth rate would fall to 6.9 per cent in 2015 when compared to the last year.

The World Bank’s South Asia Economic Focus report has revealed this fact and has also warned that in the event of an increase in the prices of fuel in the world market, Sri Lanka’s economy could come under severe pressure.

It is important that the Sri Lankan government has to go beyond increasing its expenditure through the popular budgetary proposals, instead increase its revenue and bridge the budgetary deficit, the World Bank has pointed out.

The World Bank report has also pointed out that if to maintain a high rate of development, it is important for the low state and individual savings country to attract more direct foreign investments.

Sri Lanka’s direct foreign investments are not high as expected says this report.

According to government data, Sri Lanka has attracted USD 1,900 million as direct foreign investments in 2014 while its target was to attract USD 2.5 billion.

While Chinese investor confidence on Sri Lanka has fallen due to the new governments moves to re-evaluate most of the ongoing Chinese investment projects, economic analyst point out that if to attract foreign investments towards Sri Lanka, then it is essential that the country maintains a long-term and stable investment policy framework.