The Asian Development Bank says there's need for the Solomon Islands Government to take immediate action to boost sustainable economic growth.

Its Solomons' Economic Report 2010 outlines the state of the economy and presents a guide to addressing the key development challenges.

These show the government needs to increase its efforts in the areas of good governance and private sector development reform.

The report warns that the Solomon Islands remain a high-cost, challenging place in which to conduct business and many constraints to private sector development still exist.

The ADB recommends the government change that by improving infrastructure through contracting out and greater use of public-private partnerships, more telecommunications competition, reforming state-owned enterprises, and tax and land reform.