Jan 03, Colombo: As the monetary authority and the apex regulator of the financial system of Sri Lanka, Central Bank is making its best efforts to ensure stable economic conditions on a sustainable basis, the Governor of the Central Bank Dr. Indrajit Coomaraswamy said today.
Presenting the Road Map for next year - "Monetary and Financial Sector Policies for 2017 and Beyond" today, the Central Bank Governor said the Central Bank would continue to play its role through clear and consistent policies to ensure overall macroeconomic stability in the country.
He cautioned that some of these policies may be perceived as painful in the short run, but they are meant to strengthen medium-term stability of the economy and it is crucial for the long-term prosperity of all Sri Lankans.
He said the monetary authority's policies aim at supporting the overall thrust of the government to promote investments, domestic and foreign, and enhance exports.
The Governor expressed the view that the initial impetus to harness the country's considerable potential must come from the domestic private sector, particularly in the next year or two.
"We believe that harmonization of purpose and better coordination among private sector and public sector operations would enhance the effective implementation of our policies and measures, thereby helping to achieve our common development goals," Dr. Coomaraswamy said.
The Megapolis Development Project as well as Master Plans that have been drawn up by the government for the development of
Hambantota, Trincomalee and Kandy, and various regional development programs will open up tremendous investment opportunities for both domestic and foreign investors, the Governor pointed out.
Speaking about the government's efforts for poverty alleviation in the country, the Governor noted that while the overall development thrust is on track, there exists disparity in the incidence of poverty across the provinces and districts, despite the progress that has so far been made in reducing overall poverty in the country.
He said the priority needs to be attached to equitable and inclusive growth, which is key to achieving the government's objective
To eradicate poverty in all its forms from Sri Lanka in line with the Sustainable Development Goals (SDGs).
Noting the government's intention to restructure the Central Bank, the head of the Central Bank said constructive restructuring process, which would upgrade processes and result in the reform of the Monetary Law and Banking Acts, particularly to give greater powers to the Central Bank to regulate the financial system is "very much" welcomed.
"We are confident that such moves would be instrumental in enhancing the credibility of the Central Bank, while preserving the independence it needs to perform its roles effectively," he said.
Full text of Central Bank Governor's speech on Road Map 2017