Despite global economic downturn :

Sharp increase in trading activity among ACU member countries

Charumini DE SILVA

Trading activity among Asian Clearing Union (ACU) member countries has shown a significant increase in spite of the global economic downturn.

A growth rate of 33 percent in 2008 over the previous year clearly shows this expansion of trade and the growth of the ACU payment mechanism among member countries, Governor of the Central Bank of Sri Lanka, Ajith Nivard Cabral said.

He was speaking at the 38th Meeting of the Board of Directors of Asian Clearing Union (ACU) yesterday at the Central Bank.

“The introduction of the Euro currency system in 2009 will provide members with further flexibility to transact with both US$ and Euros.

“This will surely enhance the growth of transactions through the mechanism. Full credit for these initiatives as well as for the implementation of the web based system to access the voucher information and statements that have significantly reduced the operational issues should go to the ACU Secretariat.

The measures that will be taken by us should not only focus on current issues but should also be geared towards ensuring financial and economic stability in our region as well as in the world”, Cabral said.

“Sri Lanka is today a war free country. Despite the global economic situation, Sri Lanka is poised to enter a more promising, yet economically challenging era.

The ACU has been facilitating intra regional trade and associate payment mechanisms over the years through the upgrading of these functions and procedures to be in line with the technological advancement growing needs of member countries and increased demand due to the changes in the global payment systems. During the ACU’s past 34 years, not a single member has defaulted on any payment that was due to any other country. This clearly demonstrates the responsible manner in which the member Central Banks have participated in this activity”.

“The global financial crisis, which was precipitated by various reckless actions in several advanced economies have now reached unprecedented levels. This situation has had an adverse macro economic impact on various intensities on countries in our Asian region too”, he said.

Prime Minister Ratnasiri Wickramanayake said, “Currently we are all affected by the global recession. Nevertheless, Asia has become the engine of growth and must have a multiplier effect on our region.

We should be able to take the maximum use of the investments, finance, trade and banking for the mutual benefit of all ACU member countries.

With the end of the three-decade long civil war, the revival of economic activities along with the reconstruction and development of areas taken over by us, higher tourist arrivals and higher investments will help increase the number of domestic tourists.

The Government’s economic policy is centered more on developing a regionally balanced economy addressing the economic and social disparities across the country”.