The Central Bank of Sri Lanka has been able to deliver both economic and price stability as never been before experienced in our economic history, says Governor of the Central Bank, Ajith Nivard Cabraal in an interview with The Island newspaper today (Oct 20).

Speaking with regard to CBSL’s foreign exchange policy, he says, “We have had three years of low inflation, when many countries were experiencing high inflation. We have been able to manage the stability of our financial system so that not a single bank or a finance company collapsed, when in highly advanced countries, hundreds of banks have crashed”.

All our macro-economic fundamentals have had rapid improvements, than we have ever had in the past. For the first time in our history, we will record over 8% growth, two years in succession. Our interest rates are stable. Our debt to GDP levels are dropping. Our poverty levels have recorded major declines, the CB Governor adds.

He maintains that new investments are pouring in, with the speedy development in infrastructure. “The current Government and the current Central Bank have taken decisions which are in the long-term interest of the country and the economy. Because of our convictions and our rational thinking, we have so far been able to convince the IMF of our position and been able to obtain their concurrence for almost all our actions”.

He further notes that Sri Lanka’s exports have had their highest growth in the past year, and a remarkable increase in productivity has taken shape. “That suggests that this export growth is more sustainable now, than ever before. Such export growth has flourished with our present day exchange rate policy, which has offered a high degree of stability and certainty to all stake-holders”, he adds. “What is essential for business is a stable environment which allows entrepreneurs to take measured, long-term decisions. It is the speculators, currency raiders and opposition politicians who thrive in rapidly fluctuating exchange rate regimes.”

For the full interview, follow

http://island.lk/index.php?page_cat=article-details&page=article-details&code_title=37207.