Inflation drops : Effective financial management
State Revenue and Finance Minister Ranjith Siyambalapitiya told
Parliament yesterday that the inflation rate has gone down to 7.6 per
cent last month due to the pragmatic financial policies implemented
through the Central Bank.
"It is significant that the Government has successfully controlled
the inflation rate to a single digit of 7.6 per cent in comparison to
the 28.2 per cent recorded in June 2008.
The Minister further said that Sri Lanka was battered by a high
inflation rate for a long time and it is a remarkable achievement by
both, the Government and the Central Bank in its effective financial
The drop in the inflation rate will spur the economic growth rate he
Meanwhile, the Government has introduced the special incentive
package to protect the registered financial companies and leasing
companies despite the challenges posed by the world economic and
financial crisis. It is estimated that the cost of this project would be
Rs. 4250 million.
It is our responsibility to provide financial assistance for both
registered financial and leasing companies as the maintain a 9 per cent
contribution to drive the economy," the Minister added.
Following a discussion held by President Mahinda Rajapaksa with heads
of registered financial and leading companies the incentive package was
introduced," he said.
A number of financial and leasing companies are operated all over the
country maintaining a huge customer network. Therefore, trust of the
people on these companies should be consolidated. "That is why the
Government intervened to introduce this package which will prevent the
negative impacts posed by the global financial crisis to both of these
sectors. "This move will also protect the liquidity rates of both
financial and leasing companies, he said.
Meanwhile, the proposals of the package are expected to be
implemented through the Lanka Puthra Bank.