The Capital Market Cure

The Monetary Board in conjunction with the Central Bank is busy creating a policy to create systems whereby there is better transmission of monetary policy. The situation has become quite dire as the Central Bank seems to have lost control over interest rates. This is most evident in the Central…

The Politicisation of Inflation

Sri Lanka’s is currently in the process of amending its monetary policy. We are moving towards an inflation targeting central bank. The proposed new law is at the stage where the dinosaurs in parliament oppose it on grounds of tradition[1]. Quoting from the referenced link; The requirement that a particular…

Where is Regulatory Energy Focused?

The Central Bank has been taking out all its regulatory energy[1] on the Non-Bank Financial Institutions. The current 25 percent cap on ownership targets only the NBFI sector. The earlier guise to this regulatory movement was the need to be compliant with BASEL 3. However, the not so subtle true…

Political Volatility and Creating a Narrative

The recent Easter Sunday bombings, the subsequent politically backed mob violence[1], and the release of a divisive figure all increase political volatility. This volatility if carefully managed can be used to create a change of power. Let it be noted that the divisive figure was jailed for criminal intimidation[2].              …