• Sri Lanka is suffering today because of the decisions made by the  political leadership and because of their interference in running the  economy

By Yohan Perera   

The Monitory Board of Central Bank has been facing a difficult task of stabilising Sri Lanka’s economy because of political interference over the years with wrong people appointed to various positions, two leading Sri Lankan Economists said at a webinar organized by the UNP . 

Economist Priyanka Beddewithane who is also the consultant for the World Bank and Economist Nihal Hennanayake made the remarks during a webinar organised by UNP recently.  

“Monitory Board of Central Bank is the body which governs Sri Lanka’s economy, This Board Comprises the Central Bank Governor and Treasury Secretary and three independent persons. Sri Lanka is suffering today because of the decisions made by the political leadership and because of their interference in running the economy. It is just like parents who suffer because of the wrong doings of their children,” Mr. Beddewthane said  
He also said the Governor of Central Bank should be someone who must be familiar with the banking sector.  
“Sri Lanka’s economy is against the wall today because of certain institutions. Customs has not been able to collect tax revenue in an effective manner over the years while the National Carrier SriLankan Airlines is running at a loss,” he said.  

He said policy makers should come out with the right kind of policies.  

Mr. Hennanayake said only late President J. R. Jayewardene appointed the right person for the post of Finance Minister.  

He said printing money will result in a new issue where there won’t be any goods left for the people to purchase out of their money. Scarcity of dollars will also push our economy towards the wall, he said.  
He said Sri Lanka had not done anything dramatic with regard to the economy. “Sri Lanka’s GDP has grown only by 3,5 percent every year since 1978 and in 2008. The GDP growth stood at 8 percent in 1978 because of the boom brought on by the opening of the economy and because of the construction boom in 2008,” he said,   

• The Customs has not been able to collect tax revenue in an effective manner over the years