Nivard promises to offer sound policy advise

Having faced a very challenging 2007 and bracing for a tougher new year, Governor Nivard Cabraal last week assured the public that the Central Bank would offer sound policy advise to the Government and other stakeholders of the economy whilst maintaining transparency.
The economy last year is estimated to have achieved a 6.7% growth, down from the all time high of 7% in 2006. A 7% GDP growth forecast was made for 2008. The growth was reasonably broad based as all major sectors of the economy recorded positive growth rates. It is also remarkable, that such growth was achieved amidst a number of serious challenges including high international oil prices, adverse weather conditions and the unfavorable security situation,” he said.

Governor Nivard Cabraal

“We must also state, perhaps at the risk of being considered somewhat immodest, that we are reasonably satisfied with our past year’s accomplishments, when viewed in the context of the great challenges that we faced. Nevertheless, we assure you that we shall not be complacent in any way, and shall strive for excellence relentlessly, and push ourselves to perform even better,” Mr. Cabraal said during his presentation of the Bank’s Roadmap for 2008.

“This is our economy. Let us keep faith in our own abilities to take it forward; fast; with equity; with dedication. Let us be confident; be progressive; be optimistic. On the part of the Central Bank, we strongly assure all who are contributing to Sri Lanka’s progress that they would continue to benefit from the resilience and momentum of our economy,” Mr. Cabraal said. The Bank was the target of criticism from the Opposition and economists for what they opined as mismanaging the economy in 2007 with inflation and exchange rates reaching highest levels apart from high interest rates.

However Mr. Cabraal was unmoved. “With the Central Bank’s vision of serving as a credible and dynamic institution contributing to the prosperity of Sri Lanka, we will continuously strive to effectively enhance the productive resources of our country by maintaining economic, price and financial system stability,” he said.

According to him the Bank would provide leadership to the banking sector of the country as the apex financial organization. “In keeping with our values, we would also continue to maintain transparency by announcing our policies to the public, which would, in turn, enhance the policy effectiveness,” he said.

With the unveiling of the road map, an initiative which he kicked off in 2007, the Governor was hopeful it helped to clarify the Bank’s policies and that therefore, it would assist stakeholders in their own economic endeavours.

“We also hope that our statement would help to convince that our policies and strategies are clearly focused and directed towards the prosperity of our country. The unfolding of this Road Map is a reflection of the Central Bank team’s wide capabilities, high degree of professionalism, and deep commitment to contribute to the noble goal adding to the prosperity of our nation. I am personally proud of them and consider it a great honour to be a member of that outstanding team,” Mr. Cabraal said.