The global recession and economic crisis has been the hot topic of conversation the world over for the past months. The near complete collapse of the global economy was by far the worst crisis since the Second World War. Fortunately things are looking more positive and economies the world over are beginning to take a turn for the better.

A recent forum was held by The Institute of Chartered Management Accountants of Sri Lanka in conjunction with RAM during which the effects of the recession and the positive outlook for the Sri Lankan and global economic recovery were discussed. The key note speaker at this event was Yeah Kim Leng Group Chief Economist of RAM Malaysia.

Yeah Kim Leng gave a comprehensive analysis of the current global trends and the expected recovery over the next few years, paying particular attention to Sri Lanka. Asian economies were the least effected during the economic crisis and mainly due to this they are leading the way in the global economic re-growth.

Foreign exports have always played an important role in sustaining the economy of many Asian countries, including Sri Lanka. Due to the decline in exports since the onset of the recession, domestic demand is becoming an important factor in these countries. Yeah Kim Leng focused on this as an important area to look at in the economic recovery of Asian countries. He said that too much dependence had been centred on foreign exports in the past century and that the way forward was to focus more on domestic demands.

Sri Lankan exports are ranked ninth among 189 worldwide and it has potential to increase. A 5.5% annual growth rate is expected for the Sri Lankan economy over the next few years, which should steadily help to improve the countries economy.