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| Sunday, 03 August 2003 |
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Sri Lanka's growth in line with E.Asia Minister of Finance K.N. Choksy stressed the need for development banking, reduction of interest rates and bank concessions which will help contain social unrest, maintain democracy and private sector-led growth. He was making the inaugural address at the 15th anniversary convention of the Association of Professional Bankers Sri Lanka. He said these factors will bring industrial development to small entrepreneurs without which our nation will go back to the days of nationalisation and socialism. It is a national service which bankers and the banking industry is called upon to supply. "The challenge is therefore yours to accept and fulfil," he told the banking fraternity gathered on the occasion. The Minister will present amendments to the Banking Act in Parliament next month while the larger issues will be incorporated into a new banking law later this year. The amendments will strengthen bank supervision and control over-specialised banks, increase the role of the Department of Bank Supervision, enforce legitimate directions given to banks and introduce criteria governing eligibility for appointment to the board of directors of commercial and specialised banks. A proper test too will be introduced for the first time in the country, said the Minister. He said the Government is considering the possibility of introducing a new asset management law to repose a special duty in bank directors and managers to ensure prudent business practices to avoid the hardships which fall on depositors who have placed confidence in them. A new Foreign Exchange Management Law is presently before the Cabinet for approval, he said. Chairman Asian Bankers Association (ABA) Alfonso T. Yuchengco, delivering the keynote address, said the ABA is delighted with the Government's progress in checking the budget deficit and stabilising the macro-economy in 2002. This achievement should provide the foundation for more rapid growth over the next five to seven years. Improved peace and order already seem to be stimulating tourism and internal trade. Even the weather seems to have been kind to Sri Lanka's drought-stricken agriculture sector and now that the Iraqi crisis has passed, international oil prices should settle down to moderate levels. He said all anticipate global recovery particularly in the United States and the European Union - both major markets for Sri Lanka's textiles and apparels - to propel the island's industry towards the path of growth. Even the Asian Development Bank is cautiously upbeat on Sri Lanka's immediate future, said Yuchengco. It expects Sri Lanka's economy to grow by five per cent this year and by 5.5 per cent next year if the weather continues to be favourable. This level of growth is well in line with the average of East Asia, one of the fastest growing regions in the world, he noted. (SG) |
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