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Sri Lanka CB brought inflation down, but concerns rising: opposition

Mar 09, 2010 (LBO) - Sri Lanka central bank has brought inflation down in 2009 with tight monetary policy but excessive government spending is threatening stability, Sri Lanka's main opposition United National Party has said.
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"The central bank raised interest rates, withdrew liquidity and kept tight monetary policy," Harsha de Silva, an economist who has been nominated for the opposition list nominees for lawmakers in upcoming polls.

"Some of the action was taken under public pressure.

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But it is not my intention to criticize everything.
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Inflation which was 29.9 percent was brought down to about 0.
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6 percent."

Sweeping criticism by the opposition of government policy (or government policy of opposition) prevents the steady selection of good policy by the electorate in a country and reduces debate to a frivolous state.

Frivolous debate retards the progress of a country, confuses ordinary people and prevents the emergence of policy stability diverts attention away from the key causes of suffering and economic problems of the people.

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This prevents them from being solved.
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De Silva said excessive government spending is however threatening monetary policy.

"Inflation has increased about ten fold to 6.


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