‘Clarity, consistency and continuity’

Friday, 25 November 2011 00:00 - - {{hitsCtrl.values.hits}}

With 3Cs in place what more does private sector want from President Rajapaksa, asks Treasury Secretary Dr. P.B. Jayasundera at Daily FT-Colombo Uni. MBA Alumni Association post-Budget seminar
Urges business leaders to make best use of Budget 2012 aided by peaceful and sound macroeconomic environment to deliver higher investments and growth

Describing the Budget 2012 as one that has delivered the 3Cs – ‘Clarity, Consistency and Continuity’ – from the President Mahinda Rajapaksa-led Government, Treasury Secretary Dr. P.B. Jayasundera yesterday asked private sector what more it wanted as an incentive to do better.

“The message from the Budget 2012 is clear. President and Finance Minister Mahinda Rajapaksa was keen to deliver clarity, consistency and continuity, taking on from a very supportive Budget in 2011. What more does the private sector want?” inquired Dr. Jayasundera during his address at a packed post-Budget Forum organised by the Daily FT and the MBA Alumni Association of the University of Colombo at the Cinnamon Grand.

He urged business leaders at corporate level as well as the SMEs to take heart from the 3Cs and noted that in an environment of peace and sound macroeconomic fundamentals, the private sector must get on with their expansions and investments, thereby ushering in greater development.

Basing the outcome of an independent opinion poll conducted by the organisers for the seminar (see chart), Dr. Jayasundera said that a majority of 64% had said that Budget 2012 was good for the country. “Yes, the rest may not be happy with the Budget and we have to and will address these concerns, but let’s move on and make the best use of the Budget 2012.”

He said that despite challenges and scepticism, the country had managed to sustain 8% GDP growth during the past two years whilst reducing inflation and the budget deficit.

“We are committed to ensure a third year of similar achievements. The private sector must take advantage of these benefits and do its part,” Dr. Jayasundera added at the seminar, for which premier blue chip JKH and national telecom carrier SLT were the strategic partners.

Dismissing allegations of personality clashes (in an apprent reference to Central Bank Chief Nivard Cabraal) over the exchange rate issue, the Treasury Secretary said economy needs different policy stimuli at varying times. When required the inflation and interest rates are used and at present the President via the Budget move of 3% devaluation has made a conscious decision that export growth is critical for Sri Lanka given its small domestic market. “The Government’s success thus far has been shaped by sound fiscal and monetary policy,” said Dr. Jayasundera who also serves on the Monetary Board.

MAJORITY SAYS BUDGET GOOD FOR COUNTRY : OPINION POLL VIA SMS