Sri Lanka no longer “uncomfortable” with inflation blot on economic record

Mar 10, 2014 (LBO) – Sri Lanka is no longer “uncomfortable” with the blot of high inflation in its economic record when meeting international agencies and visiting businessmen, a top official said. “We no longer feel uncomfortable to speak to the International Monetary Fund, the World Bank, the international rating agencies, the international business community, all the visiting investors,” Treasury Secretary P B Jayasundera said.

“Because we can positively say what the government should do has been done very well.”

Jayasundera was addressing the business forum where Sri Lanka joined the AllWorld Network, a US-based effort to link up the fastest growing privately held firms in the world.

Money issues is kept as a government monopoly by modern states, with legal tender laws and taxes on the exchange of gold and silver, allowing a modern fiat money central bank unchecked by gold to generate inflation at will.

From the late 1960s inflation became a serious problem as the US printed money to fund the Vietnam War and President Nixon’s populist policies undermining a link money had to gold.

Sri Lanka has had high inflation from around late 1970s, amid high deficit spending accom