Sri Lanka will have to follow an alternate economic policy without being caught up in between the neo-liberalism intervention and Washington consensus of stabilise, privatise and liberalise, new Central Bank (CB) Governor Prof. W.D. Lakshman emphasised at a media conference in Colombo on Friday.
In future, it is necessary to consider the economy holistically, with an understanding of how each sector affects the others, he said adding that the rapid and self-reliant development needs to be created, and this requires state planning,
In his maiden address to media personnel after his assumption of duties as the CB Governor, eminent economist, academic and author Prof. Lakshman outlined the history and the role of Central Bank as the monetary regulator.
He said he wanted find alternatives to ‘neo-liberal’ policies that the island is said to follow, as there was a prevalence of poverty, under-employment and employment despite multiple state programs to change.
“Decision makers in different sectors of the economy are confronted with challenge of searching and identifying alternative policy sets of greater efficacy than the neoliberal policy set we have been working on so far,” Lakshaman told reporters after his first monetary policy meeting.
He said that he hopes to be able to make my contribution in this search for alternatives.”
He noted that the task of the Central Bank is to secure economic and price stability, and financial system stability with a view to encouraging and promoting the development of productive resources of Sri Lanka.
Prof Lakshman paid a glowing tribute to outgoing Central Bank Governor Dr. Indrajit Coomaraswamy for his yeoman service in managing the monetary discipline and stability.
(LI)