People's living standard proves economy's stability – CB Governor

by Shirajiv Sirimane

Central Bank Governor Ajith Nivard Cabraal said when they launched a Road Map spelling out details and targets a few years ago, cartoons were drawn and negative publicity were created to say that these figures and targets could not be achieved and they were just dreams.

“But today if you look back to five years and sees these targets I can proudly say that they were achieved and some have been over-passed as well.” he said. The Governor presenting the ‘Road Map’ for 2014 at Central Bank said that critics were of the opinion that a per capita income of 4,000 US dollars was something that cannot be achieved, but this too was achieved.

He also said similarly the inflation which was in double digits was narrowed to a single digit and it was maintained at this level.

“Sri Lanka don’t have to massage figures to achieve our goals and I strongly dismiss allegations that statistics provided by state institutions mainly the Central Bank and the Census and Statistics Department were distorted or ‘massaged’ to suit Government rhetoric on development.”

He said the figures were accepted by International Organisations and it was only a few politicians that wanted to create a slogan making a feeble attempt at trying to disfigure ‘correct’ figures.

He said that an official form the Census Department who was removed had filed a fundamental rights petition in the Supreme Court and some of the media reports were based on this proceedings. “Irresponsibly, publicity has been given to only a section of the facts in the FR petition and that has created a misconception,” he said.

The Governor also said that quality of the standard of living had tremendously improved and people are investing on new luxuries that were not available before.

“There are over 100, 000 people who walk on the newly created walkways and if you look how much they have spent for their attire you can see the areas where people invest.”

Another area is the mobile phone, new vehicles and the number of people who are going abroad for holidays. These all show that people are investing in luxuries that were not there earlier.”

He said the current account is also expected to record a surplus in 2014 after 26 years, reflecting the rebound in revenue and rationalisation of recurrent expenditure. Cabraal said Sri Lanka's economy was expected to grow 7.2 percent in 2013 while inflation is projected to remain in mid-single digits.