Volatile conditions:

Tough decisions imperative - CB Governor

Ramani KANGARAARACHCHI

The Government has to take tough decisions at certain times when there are volatile conditions.

Ajith Nivard Cabraal

However, people should not get carried away by rumours because the country has overcome all difficult situations in the past.

Similarly, Sri Lanka will overcome the recession too, said Governor, Central Bank Ajith Nivard Cabraal.

He was speaking on how Sri Lanka should work during recession at a ceremony at the Ceylon Intercontinental Hotel to award the Life Time Award in Banking to H.C. Piyasiri, a senior banker who has made an outstanding contribution to the banking industry.

"We need to have new skills, be conscious and have courage to ensure maintaining the momentum," he said.

There is a huge transition all over the world and new situations are emerging and as such the country should understand the new challenges and re-position itself.

Referring to the crisis in Sri Lanka in the past, he recalled how it recovered after the tsunami and the recent financial crisis in a reputed bank. Elaborating on the lessons that we should learn, Cabraal said that with nationalization of US banks the thinking that markets would stay stable has now been shattered. The intervention from all sides is unimaginable.

The stimulus packages and infusion of money to various banks and financial institutions was not even thought of before, the Governor said.

However, the Government has already set up certain new strategies such as tapping the diaspora, introducing treasury bills to small-time traders, extending stimulus packages to finance companies and hence moving towards a new paradigm, said Cabraal.

The Commercial Bank of Sri Lanka and PABC Bank were the runners-up.