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Stop excessive money printing to avert a far worse crisis – SJB

Published

4 years ago

2021/11/6

‘The only way prices can be controlled is not by gazette or emergency rule, but via the market itself’

In principle price controls fail, and they create shortages and black markets. The only way prices can be controlled is not by gazette or emergency rule, but via the market itself, says top Samagi Jana Balavegaya spokesman and economist Dr. Harsha de Silva.

Issuing a statement in the wake of the government doing away with price control, Dr. de Silva has said: “To do so, the reason why prices are increasing must be determined. Is it a temporary increase due to a supply shortage, say a drought or flood or is it because aggregate demand has increased due to increased money supply? The answer will depend on what is causing prices to rise.

“In the case of Sri Lanka, the massive expansion of money is the cause for continuous increase in prices or inflation. This is the reason for the rapid depreciation of the currency as well. The only short-term solution to reduce this excessive rate of money growth is to stop excessive money printing. If monetary accommodation is continued inflation could turn into hyperinflation and further depreciation of the currency leading to serious social unrest.

“However, the reality is that much of the population cannot bear the increasing costs. It is not a secret that middle-class families have had to cut down on expenses. The situation among the low-income families is a lot worse. People have had to give up meals. It is the responsibility of the government to ensure people don’t starve due to the total mess up of the economy by the politicized Central Bank that continuously ran its printing press a la modern monetary theory that was bound to fail. It is imperative that an income support mechanism be implemented for the most vulnerable immediately. This can be implemented via the Samurdhi scheme even though it is nowhere near ideal.

“Beyond the short term and in a more stable macroeconomic environment, we need to be more productive. For instance, accurate information on weather, better use of technology, application of right amounts of fertiliser, efficient storage and logistics would help improve the supply of agricultural produce. Similarly, the productivity must increase in manufacturing and services.

“In the meantime, the government must correct market failures by appropriate regulation to foster competition in the market. Take for instance the rice market. While there is more than enough paddy harvested there is a huge shortage of rice. That is because the rice manufacturing market has been captured by a few big millers and competition has been wiped out. The way to correct that market failure is to empower the hundreds of SME rice millers by providing them working capital and get their supply into the market. Instead, the government has now decided to import rice to control the prices. This wrong policy will make the problem worse, from market failure to government failure. When imports are stopped, all the SME millers would be out of business the big players will completely dominate the market.

“The SJB believes in a social market economy where competition will be encouraged with necessary amount of regulation to maintain a stable market. We will ensure that all parties to a transaction, the firm or the investor, the worker or the farmer and the regulator or government would together arrive at sustainable equilibrium so that longer term growth with equity could be maintained. However, given that the economy is in such dire straits, the truth must be told to the public that there is no free lunch and we as a nation will have no option but to work hard to a plan. And that plan will call for significant economic reforms and integrating Sri Lanka with global production networks. The resulting export-led growth, as opposed to the current import-substitution led growth, would significantly elevate living standards of our people while allowing for sufficient funding to provide safety nets for those in need.”

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“Investments in Professional Education Are Investments in Institutional Strength and National Progress” – PM

Published

9 hours ago

2026/02/19

Priyan

Prime Minister Dr. Harini Amarasuriya stated that strengthening Sri Lanka’s professional education framework and aligning it with internationally recognised standards is essential to building a skilled, ethical, and globally competitive workforce.

The Prime Minister made these remarks while addressing the official launch of the QS-accredited Chartered Qualification in Human Resource Management (CQHRM) at SCQF Level 11 (New Syllabus), organised by the Chartered Institute of Personnel Management (CIPM) Sri Lanka under the theme New Heights of Recognition. The event was held on Wednesday, 18 February at the Cinnamon Life, Colombo.

Emphasising the importance of expanding professional and vocational education pathways, the Prime Minister stated:

“This is of crucial importance to us in broadening our educational pathways and opportunities. We need to increase access to education that is globally recognised and that offers multiple pathways in professional and vocational fields. This aligns closely with the reform process we have initiated in the education sector and with our commitment to lifelong learning where individuals can work and learn at the same time, and where education is not limited to a particular age group but continues throughout life.”

Highlighting Sri Lanka’s national priorities, the Prime Minister further observed:

“At a time when Sri Lanka is focused on economic recovery, institutional reform and sustainable growth, the need for competent and ethical human resource leadership is clear. A competitive economy depends not only on investment and infrastructure but also on skilled professionals who can lead institutions effectively.”

The Prime Minister noted that the QS accreditation of the CQHRM qualification strengthens international recognition of Sri Lankan human resource professionals, enhances professional progression pathways, and reinforces confidence in the country’s professional education system. She also underscored the role of human resource leadership in advancing equity and inclusion within workplaces, including fair recruitment practices, safe working environments, leadership development for women, and inclusive policies for persons with disabilities and neurodivergent individuals.

Addressing the future of work, the Prime Minister stressed the importance of preparing for rapid technological transformation, including the growing impact of artificial intelligence on industries and workforce management, encouraging institutions to proactively adapt to emerging demands.

The event was attended by Deputy Minister of Industry and Entrepreneurship Development, Chathuranga Abeysinghe, along with other distinguished guests.

[Prime Minister’s Media Division]

Latest News

Advisory for Severe Lightning issued to the Western and Sabaragamuwa provinces and Nuwara-Eliya, Galle and Matara districts

Published

13 hours ago

2026/02/19

Priyan

Advisory for Severe Lightning
Issued by the Natural Hazards Early Warning Centre at 12.00 noon 19 February 2026 valid for the period until 11.00 p.m. 19 February 2026

The public are warned that thundershowers accompanied with severe lightning are likely to occur at some places in in the Western and Sabaragamuwa provinces and in Nuwara-Eliya, Galle and Matara districts after 2.00 p.m.

There may be temporary localized strong winds during thundershowers.

General public is kindly requested to take adequate precautions to minimize damages caused by lightning activity.

ACTION REQUIRED:

The Department of Meteorology advises that people should:
 Seek shelter, preferably indoors and never under trees.
 Avoid open areas such as paddy fields, tea plantations and open water bodies during thunderstorms.
 Avoid using wired telephones and connected electric appliances during thunderstorms.
 Avoid using open vehicles, such as bicycles, tractors and boats etc.
 Beware of fallen trees and power lines.
 For emergency assistance contact the local disaster management authorities.

News

Navy and Coast Guard seize 04 Indian fishing vessels poaching in Sri Lankan waters

Published

13 hours ago

2026/02/19

Priyan

During operations conducted in the dark hours of 18 Feb 26, the Sri Lanka Navy and Coast Guard seized 04 Indian fishing boats and apprehended 22 Indian fishermen, while they were poaching in Sri Lankan waters north of Mannar and off the Delft Island, Jaffna.

Recognizing the detrimental effects of poaching on marine resources and the livelihoods of local fishing communities, the Sri Lanka Navy and Coast Guard continue to conduct regular operations as proactive measures to deter such activities. These efforts underscore the collective robust approach and steadfast commitment to safeguarding the nation’s marine ecosystems while ensuring the economic security and wellbeing of its citizens.

The 02 fishing boats along with the 10 fishermen held in Mannar were handed over to the Fisheries Inspector of Mannar and the remaining 02 fishing boats intercepted off the Delft Island, together with 12 Indian fishermen were handed over to the Fisheries Inspector of Myliddy for onward legal proceedings.