Category: Opinion

Aug 23, 2010 (LBO) – An interesting public debate has sprung between the Central Bank and an opposition parliamentarian on the suitability of Bank’s investing EPF moneys in the shares of commercial banks. While the Central Bank is defending its action tooth and nail (http://www.cbsl.gov.lk/htm/english/02_prs/p_1.asp?yr=2010: Accessed on 22.8.2010), the opposition is charging that the Bank’s […]

July 26, 2010 (LBO) – A scientist normally belongs to a single school of thought. He would follow the traditions, views and methods of that school to the letter. To the outside world, he shows himself up with a single face. Neville was practically teaching students in all the four years reading for economics and […]

July 16, 2010 (LBO)- Ex-central bankers seldom write books on their experiences. Perhaps, the fear of re living the traumatic experiences they would have undergone in handling economic crises in turbulent times may have dissuaded them from doing so. It is important to note that Copernicus made this observation when there was no formal subject […]

May 25, 2010 (LBO) – The announcement by the new Minister of Higher Education, Hon S.B Disssanayake, on assuming office and in subsequent interviews, that the top priority of his Ministry will be to make available more opportunities for the youth to pursue university education in Sri Lanka has echoed a long standing wish of […]

May 03, 2010 (LBO) – After the release of the results of every major public examination, a spontaneous debate takes place in the country regarding the deteriorating quality of the students sitting for the examinations. The first type of the survey is conducted by the Central Bank of Sri Lanka and according to its survey […]

Apr 19, 2010 (LBO) – Two news items hit the headlines of media simultaneously last week. Both relate to the year 2009 and are sourced to the Central Bank Annual Report for the year. One is the news on the key state enterprises making colossal losses. The other is the news on Central Bank’s making […]

Mar 19, 2010 (LBO) – Sources from the Central Bank indicate that the Monetary Board, in its deliberation for the monetary policy action in the month ahead, has decided to keep the ˜policy rates untouched’ for another month. But, when the inflationary pressures are mounting and the aggregate demand is accelerating, the disregard of the […]

Jan 06, 2010 (LBO) – Rice, the staple food of Sri Lankans, is in short supply and its price is on the increase. At retail shops, many popular varieties of rice are not available. Rice available at controlled prices is of inferior quality. Free Market and Government’s Interventions In a free market situation, such a […]

Dec 03, 2009 (LBO) – In a bid to relieve the public of rising cost of living, the Government has reduced the import duties of ten leading food items and expected the market too to slash the prices. Artificial price reductions too lure central banks to an unwarranted complacency because the price indices on which […]

Nov 19, 2009 (LBO) – Inflation is considered public enemy number one when a country is not at war. Since Sri Lanka’s 30 year old war is now over, there cannot be a bigger public enemy than inflation. Inflation Makes People Poorer All individuals are concerned about inflation because it makes them poorer unless their […]

Oct 19, 2009 (LBO) – A great deal of fear has been expressed by many that on one fine day in the future the Maldives will be submerged by rising sea levels without leaving even a trace of those beautiful islands that have attracted thousands of visitors to them for thousands of years. The chain […]

Oct 05, 2009 (LBO) – Both Law and Economics are two brothers born to the same mother: morality of the society.They both use the same working tool for producing their output: scientific approach.They derive their subject matter from moral principles. Their mission is to uphold moral principles and ensure the maximum happiness for everyone through […]