Central Bank restored to independent status, no state interference in fixing exchange rates, says Harsha

Alevel playing field will be created by the government to enhance economic activity with both private and state enterprises being the stakeholders, a top Government politician said. Deputy Minister of Policy Development and Economic Affairs Dr. Harsha de Silva delivering the keynote speech at the 60th LBR LOB CEO Forum under the theme “Recalibrating Sri Lankan Economy : Meeting the Challenges Ahead” said that the Central Bank will be made independent and the state will not interfere with regard to fixing exchange rates as it was their responsibility. “New financial instruments should also be created not for the rich alone but for the poor as well.”

During the run up to the presidential elections, he said he was able to convince the masses that they should be financially sound to eke out a living. Newly constructed highways and the network of new roads does not mean anything at all unless people were financially well off.

He said the government would put in place a policy framework to ensure sustainable growth in the next five years. The government’s objective was ensure a stable government for the next five years. The term of the President’s office and the parliament will be reduced from six years to five. He said it was most likely that the parliamentary elections will be held in mid-June. Referring to the no confidence motion brought against Minister John Amaratunga by the opposition, he said if that was what they want, let them go ahead and do so but if it becomes necessary the Government will dissolve parliament and hold a parliamentary elections. “We are confident of winning the elections. It was social justice and economic justice that people look for.”

He said he fought fearlessly in parliament and outside and took part in television debates and spoke at many places in the country for five years to convince the masses about the shortcomings of the then government and was happy that he was able to convince the majority of the people. It was the economics that won the election. He said people had negative in- come growth during the past six years as the post war economy did not work at all. No wonder President (Mahinda) Rajapaksa lost the elections, the well-known economist said. Although the government boasted of its economic miracle the ground reality was quite different. “The stories that we heard off at the then Economic Development Ministry was mind boggling to many of us.”

He said the government would continue but would not rush into projects undertaken by the previous regime with China. “We want to maintain our cordial relationship with our trading partners like China and East Asia. We have had talks with our neighbour India to improve trade ties between the two countries. “We have invested over several billions of rupees at the Hambantota port project and at Mattala airport and what are we going to do with it?” he asked. The government hopes to bring the most ideally suited investment to both Hambamtota and to the Mattala airport in future. “We also have commenced talks with the European Union regarding fish exports to the EU that was stalled last year. We also want to re- build the lost friendship with the West. Priority will be given to exports from Sri Lanka and entrepreneurs will have a new platform to facilitate this process. “We are not talking about 10-15 per cent of exports but exports amounting to 50-100 per cent (increase) in the coming years. Crony capitalism and unregulated markets will be done away with to ensure justice and fair play for the masses,” he added.

Meanwhile a domestic car manufacturing facility by Germany’s Volkswagen car manufacturer is in the pipeline. Although Volkswagen wanted to set up a plant earlier, it was cancelled as the licensing fee was too high during the previous regime. An insurance policy to protect the farming community against loss of crops due to adverse weather conditions, to compensate them will be looked into. Water management and extension of irrigation services and access to markets will also be created, he said. Referring to education, he said the Prime Minister was focused on fixing the education system. The government and the opposition should come up with constructive policies to put the country back on track.