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Battered To Be Better


Last year Sri Lankas six top local banks collectively made Rs. 8.3 billion in profits, up from just Rs.
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2.9.rnbillion in 2001.rn
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Behind part of the profitsrnlay bond profits from a falling interest rate environment.

rn

The Central Bank was able torncut rates because for the first time in almost a decade the Treasurys fiscalrnpolicy was in step with Central Banks monetaryrnpolicy.

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"Historically ourrnproblem has been that we have had large budget deficits. To the credit of therngovernment during the last two years theyrnmade heroic efforts to curtail the deficit. With the budget behaving reasonablernwell, it was our duty to check inflation. The economy also has been growing at 5rnpercent and

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