Due to President’s vision :

Country saved from economic catastrophe

by Ajith NIVARD CABRAAL

Today, the Employees Provident Fund (EPF) has reached the high watermark of over Rs. 710 billion. There are 2.1 million accounts operating under the Fund. Its share of the country’s financial wealth amounts to 12 per cent.

The Central Bank of Sri Lanka considers it as a special achievement for it has been able to successfully maintain the EPF for the last 50 years.

We also expect to continue the Fund on a much stronger and more viable basis in the future.

In the economic history of the world, the years 2008 and 2009 saw the most critical and crucial phases of the global economic catastrophe. The economic meltdown took a heavy toll on the economies the world over.

The banking system in advanced countries collapsed, with zero-performance. Thousands of workers in those countries faced very dim prospects of employment. Hundreds of factories were forced to close their operations with currencies losing their value in the respective countries.

Although there was this possibility for our country to, to fall victim to the global economic downturn, thanks to the leadership of President Mahinda Rajapaksa, we could escape the crisis. His advice, vision and guidance enlightened us on the right course to be adopted.

May I recall the instance when I met the President to discuss the turmoil the Seylan Bank faced and how he insisted that every precaution be taken to prevent the bank from collapsing. It is because of such appropriate action that the banking sector could remain intact. Over 100 banks in America, the most advanced economy in the world, collapsed this year alone. When Britain’s Northern Rock Bank began to feel the impact of the monetary crisis, discussions between the British Prime Minister and the Head of the Central Bank continued for four days while customers in their thousands queued up to withdraw their deposits.

We never experienced such critical situations in our country, thanks to the leadership of President Mahinda Rajapaksa. Had there been any ‘tremors’, we could not have proceeded with the war. Nor could the country be rescued from the impending peril!

It is the President’s leadership that helped rescue the economy from disaster whilst ensuring the success of the anti-terrorist operations.

I should say the President could simultaneously launch the anti-terrorist war, develop the country and provide relief to the needy. As far as I know, no other country could claim such a spectacular performance.

It is a grand victory for us to undertake the construction of a 30-storeyed building for the Labour Ministry in our country, when building assets in other countries are being auctioned and commercial establishments closed or referred for arbitration.

It is our prime duty to look back and see how we faced these situations and how the political leadership helped us wriggle out of morass!

The Employees Provident Fund is the country’s wealth which the Central Bank manages well.

The responsibility of running it efficiently lies with the Bank’s Monetary Board.

Whilst managing the economy and ensuring the sound operation of the Provident Fund, we help beneficiaries to receive their pension gratuities well in time.

As you are aware, when we analyse macro-economic factors, we clearly observe development at all levels. During the last four year period we could continuously maintain a growth rate of six per cent. Even during the times when so-called economic whizkids ran operations, we could not achieve a six per cent growth rate at least for two years continuously.

Under the leadership of President Mahinda Rajapaksa, the country could reach six per cent growth each year from 2006 to 2009.

Inflation could be curtailed. Interest rates were brought down to tolerable levels.

We succeeded in creating an environment conducive to investment by entrepreneurs, The infrastructure development drive reached all parts of the country in an unprecedented manner. All development projects were funded without any interruption.

It is due to the President’s foresight and vision that we could harness all potentialities and lead the country to prosperity.

This is the speech made by Central Bank Governor Ajith Nivard Cabraal at the ceremony to lay the foundation stone for the ‘Mehewara Piyasa’ building in Narahenpita.