'On-going structural changes vital for growth'
The eighth International Research Conference of the Central Bank of
Sri Lanka was held at the John Exter International Conference Hall of
the Central Bank recently. Last year's conference was held on the theme
'Global Economic Challenges and Implications for Macroeconomic Policy
Making in Emerging Market Economies'.
The conference brought together members of academia, government
institutions, policy and research institutions.
Former Senior Vice President and Chief Economist of the World Bank,
Prof. Justin Yifu Lin delivered the keynote address titled 'Development
Strategy, Development Performance and Macro Stability: A New Structural
Prof. Lin outlined modern income growth as a process of continuous
structural change in technology and industry to increase labour
productivity and investment in soft and hard infrastructure in the
economy, to help reduce transaction costs.
He said low-income and middle-income traps are outcomes of a
country's inability to generate dynamic structural changes, which
results in slower growth in developing countries.
The professor's prescription of 'new' structural economics to achieve
dynamic growth emphasises the reliance of a country on its comparative
advantage, supported by a competitive market framework and the
participation of the government as a facilitator.
Central Bank Governor, Arjuna Mahendran discussed new elements of the
global financial economic architecture in the aftermath of the global
The conference organised by the Economic Research Department of the
Central Bank, stimulates research on current themes while providing a
forum for researchers of central banks, monetary authorities,
universities and other research institutions to present recent
theoretical and empirical work on issues relating to central banking and
the macro economy.
Since its launch in 2008, the International Research Conference has
attracted scholars from across the globe and featured addresses by
Central bankers, eminent academics, and policy makers.