Central Bank Governor Dr. Indrajith Coomaraswamy said quick fixes are not a viable method to boost the economy in moving forward.
Speaking at the Colombo Stock Exchange (CSE) where he was felicitated yesterday Dr. Indrajith Coomaraswamy highlighted some aspects of moving forward.
He stated that quick fixes are not a viable method to boost the economy in moving forward. He also stated that he understands that the Sri Lankan Economy is not looking its best and said that the government is looking into the situation and will put forth certain plans for the development of the economy. However he stated that the viability of these plans should be an independent decision of the CSE.
“The Central Bank does not believe in quick fixes.Trying to artificially boost asset markets or anything else is not helpful. In the end it creates distortions where everybody loses. The critical thing is to create the fundamentals because I am sure with an economy growth the companies are able to do their business and make their profits that there is employment generated it will create demand. This virtuous cycle is possible when a system of strong fundamentals is in place. We together with the government will work to establish some fundamentals in place,”he said.
He stated that there may be a brighter future for the country because government has embarked on a stabilization program.
According to him without stabilization of the economy, nothing is possible. He stated that the heart of that stabilization is through business consolidation.
“This is a problem we had for a long time and today the government is taking measures towards it. The five year plan statement of the prime minister which is due in a few weeks.
This I think will provide a framework and direction in some detail.
I believe this should create more confidence for the establishment of the market as well,” Coomaraswamy said.
He also stated that the capital markets will have a crucial role to play with the investments coming in. he said there are many plans in the Pipeline for the CSE to make it a better platform than it already is.
“All of you know it is imperative that so much effort should be put in to build a platform that can handle a fast growing economy that grows on a sustained basis,” he said.
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