Highway Robbery?

Guest Columnist Harsha de Silva PhD debunks Treasury Secretary's recent remarks to put the breaks on policy interest rates at the expense of short changing poor savers.

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Guest Columnist Harsha de Silva PhD debunks Treasury Secretary's recent remarks to put the breaks on policy interest rates at the expense of short changing poor savers. How much longer: this strategy of see no evil, hear no evil?

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The Treasury Secretary and National Council for Economic Development Chairman; the most powerful bureaucrat in the country, speaking at the Central Bank's independence commemoration lecture on March 2, 2005, made a rather controversial, perhaps borderline amusing, statement.

He said that policy interest rates will remain the same for the foreseeable future.

He further elaborated that there was no reason to adjust interest rates upwards to fight rising inflation.

All this he said while the Governor of Sri Lanka's Central Bank sat at the head table without saying anything to the contrary.

This statement must be analysed in the background to the answer given by the Finance Minister to a question by a journalist's a few days prior to that [Sunda