Taur Matan Ruak has been sworn in as East Timor's president just hours before the nation's 10-year anniversary of independence, but concerns remain for its economic future.

The former guerilla fighter took over from Nobel laureate Jose Ramos-Horta in a ceremony on the Dili beachfront where the country had declared its freedom from Indonesia exactly 10 years ago.

The new president faces a tough task to develop the tiny nation.

"There was a time in the past when blood and fighting spirit was what was demanded from us," Mr Ruak said at his swearing-in, drawing applause from the thousands gathered at the open-air venue.

"Today, what is required from us is sweat and hard work. Our history is a narrative of struggles and of hard work.

"This tradition of hard work and dedication to our country... has to be transposed to the present, to lift our people from their current predicament where the majority are poor to a stage in the future where the majority will be well off."

Darwin resident Dulcie Mann is one of the hundreds of East Timorese who fled to Australia during the Indonesian occupation of their country.

She hopes parliamentary elections will produce leaders capable of developing the oil and tourism industries and tackling East Timor's problems.

"Trying to get out of poverty, and development - mainly in the areas of education, rural areas and the health and infrastructure," she said.

Catholic nun Efemila Sara de Costa says many East Timorese still have an uncertain future.

"Many of the young people are unemployed," she said.

Both women say despite the challenges ahead, on independence day all East Timorese are celebrating their hard-won freedom.

On Saturday, East Timor's World Bank country manager Luis Constantino said the nation had done an amazing job in just 10 years, with the child mortality rate halved since the country won its independence.

"What you can accomplish in 10 years is absolutely impressive," he said.

"I mean, 10 years ago the country was completely destroyed and right now they were able to cut infant and child mortality by half.

"They have gains in health and education. They are one of the fastest economies in the world and they have a peaceful society. So I think it's quite amazing actually."

Space to play or pause, M to mute, left and right arrows to seek, up and down arrows for volume. Watch Duration: 3 minutes 38 seconds 3 m 38 s Danielle Parry discusses East Timor's progress after 10 years of independence

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