Sri Lanka desperately need political stability — Governor

Whatever political configuration in the coalition government, the policy, basic services and development programmes should not be hindered

( April 4, 2018, Colombo, Sri Lanka Guardian) Sri Lanka’s need of the hour is to overcome the current political instability quickly as prolonged instability will bring disaster to the country’s economic consolidation, Central Bank Governor Indrajit Coomaraswamy said today.

The government should initiate a framework for service delivery, effective policy formulation and continuation of development activities, he told a media conference convened to brief the monetary policy review of the Central Bank in Colombo on Wednesday.

“Whatever political configuration in the coalition government, the policy, basic services and development programmes should not be hindered,” he said adding that the stability of the governing coalition will be essential to limiting the damage

The present administration has taken several tough decisions towards economic reforms it has brought successful results while resurrecting the economy, he claimed.

The enactment of the Inland Revenue Act, Hambantota Port project deal and several other foreign-funded development programmes were among the different initiatives taken by the government for the betterment of the country despite differences of opinion among its coalition partners, he added.

He disclosed that initial steps have been taken by the government to stabilise the economy as satisfactory, highlighted by lower inflation, a more favourable fiscal performance, and an improvement in the external accounts.

It remains an open question whether the political will is present to ensure faithful implementation of the economic reforms, he noted pointing out that the economic growth will be around 5 percent this year from an unexpected 3.1 percent in 2017 with an anticipated increase in foreign direct investment.