CB Governor advocates “no excuses” policy
View(s):Sound macro-fundamentals and trends need to be maintained without ‘trotting out’ excuses, Central Bank Governor Ajith Nivaard Cabraal said, addressing the business community at the Sri Lanka Economic Summit organised by the Ceylon Chamber of Commerce (CCC) on Tuesday.
“The macro-fundamentals and trends need to be maintained with the assistance of private sector. A ‘no excuses’ policy like the delivery assured by President Rajapaksa needs to happen,” he said. He said that debt is expected to reduce to 50 per cent with balance of payments up by US$ 3 billion along with low inflation.
Mr. Cabraal equated Treasury Secretary Dr. P.B. Jayasundera’s and his ‘chemistry’ to two batsmen at the crease. “When one batsman hits the other has to run in order to score,” he said, summing up the relationship between the Central Bank and the Treasury.
“We have new drivers in the country – new roads, new ports, new airports that have created a new future. In 2020 growth will be 8 per cent, unemployment limited to standard levels, abject poverty eradicated, single digit inflation, current account surplus and a gently appreciating rupee. The Government also aims to be in the top 20 in the ‘Ease of Doing Business’ index, equitable contribution by provinces to growth and high productivity levels,” he said, dishing out the positives.
He also commended the infrastructure development carried out by the Government saying that many of the projects, particularly roads should’ve been dome 20 years ago. “These if delayed would cost more and reduce economic growth.” Financial sector turbulence needs to be put behind permanently, thereby motivating the need for current consolidation measures, he said, adding that in six years agriculture will only account for $10 billion in the $150 billion while services will account for the bulk of revenue.
“Economic diversification needs to continue along the five hubs concept that provides opportunities for people to invest in. Before existing cash cows dry out Sri Lanka has been creating stars so they can be the cash cows for the future. New growth sectors would also need to revolve around these hubs.”