Asia will lead way out of crisis - Governor

Indunil HEWAGE

Sri Lankan banks and financial institutions need to create additional space to face future economic shocks in the world to remain economically robust and responsible for the well-being of the public, Central Bank Governor Ajith Nivaard Cabraal said.

Addressing the 28th General Meeting and conference of Asian Bankers’ Association held in Colombo he said, Asia has become the growth engine of the world’s economy and one can see a trendy shift of economic activities from western super powers to Asia during the last couple of years.

“Asia has started on a very different growth paradigm and it is time for Asian banks and financial institutions to show real leadership in re-balancing the global economy,” the Governor said.

Asia will lead the way out of the crisis for the rest of the world and its contribution to GDP of world economy will be 52 percent by 2050.Asia has been an important cog in the world’s economy and has managed to create a sense of economic sustainability despite the effects of the global economic turmoil.

Commodity has become a financial instrument in global economic context and the financialization of commodity market has not been a favourable situation since it has created enormous imbalances to the global economy and it is time for Sri Lanka to re-balance investments strategies to achieve set targets in the economy. Prudent policies need to be taken immediately to address key issues that hampers economic activities in the Asian region and it will pave the way to maintain a sustainable economic growth. With that, banks and financial institutions will have great responsibilities to cater to the rising expectations from Asian masses in the future while gaining public confidence along with adhering to international financial reforms and regulations.

Policy consistencies and clarity in economy will be the main components to instill the public confidence, Cabraal said.