Central Bank’s annual report shows govt has failed economy lock, stock and barrel: Cabraal
Posted on May 3rd, 2018

Analyzing the Central Bank’s Annual report 2017 on 77 points and ratios, former Governor of the Central Bank Ajith Nivard Cabraal said yesterday that the government; especially Prime Minister Ranil Wickremasinghe who spearheads the economy, has failed the national economy lock, stock and barrel since the last government passed the baton to the coalition government in January 2015.

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Ajith Nivard Cabraal – Pic – : Kamal Bogoda

“The increase in the debt stock in the past three years by Rs. 2,922 billion has been the highest ever debt increase in the history of the country, but the government has almost nothing to show for it in terms of tangible assets such development projects or progressive social indicators,” he claimed.

The data-points and ratios brought about by former CB Governor along with Dr. Nalaka Godahewa, former chairman of the Securities and Exchange Commission (SEC) at the media briefing held in Colombo yesterday, even questioned the honesty and integrity of key economic indicators including the GDP Deflator, GDP per capita and unemployment rate.

“It stands to reason that if for some reason the GDP Deflator needed to be adjusted, the same reason would have been applicable for a revision or adjustment in the Colombo Consumer Price Index (CCPI) as well. As no adjustment has been carried out in the CCPI , it would be very difficult to justify a huge change in the GDP Deflator unless the intention was to achieve some other ulterior purpose,” he noted.

Further speaking Cabraal said, “The impact of several ‘creative’ adjustments have had a corresponding impact on the GDP per capita as well; both in LKR and US$ terms. Accordingly, annual report 2016 , the GDP per capita had been reported at US$ 3,835 while the GDP per capita for 2015 has been revised downwards by US 81 from US$ 3,924 to US$ 3,843. As a result, the GDP per capita in US$ terms for 2014 has also been revised down by US$ 22 to read as US$ 3,821; the third occasion that the GDP per capita for 2014 has been amended in 3 years”.

Dr. Nalaka Godahewa said that the authorities have executed a shocking series of ‘number massaging practices’ which now seems to be routinely implemented in order to achieve politically and/or economically advantageous results and this has made a mockery of the computation of GDP in Sri Lanka since they are not based upon the hallowed principles of credibility. He went on to say that unemployment figures have also been manipulated to show this rate remains at only 4.2% or in other words, 0.1% less than this figure in 2014.

The former Governor said that the government has notably failed in containing the average inflation as per CCPI which had spiked to 6.6% in 2017 from 3.3% in 2014.

One Response to “Central Bank’s annual report shows govt has failed economy lock, stock and barrel: Cabraal”

  1. Cerberus Says:

    Of course, since an ‘explosion’ is exactly what they want ! Ranil and CBK appear to want to destroy the Sinhalese, the Buddhists in particular. They appear to follow a script given to them by their masters overseas. The Bond scam, the importation of luxury vehicles for all the uneducated people in parliament, lavish spending on jaunts abroad for Ranil and his 40 thieves like the trip to Davos, etc. The excessive indebtedness was caused by Ranil’s plans taking loans from big lenders abroad, deliberately to impoverish the country as a prelude to the take over by his masters. However, thanks to the wonderful watch people such as yourself Dr. Jayatilleke, their plans have not gone exactly to plan.

    To watch further – Ranil is waiting for the economy to crash completely and they are also deliberately provoking the poorer sections of the public. The idea is to have another uprising similar to what happened in 88-90 and then he will leash the forces against people as he and the UNP Catholic cabinet did earlier. The UNP murderous thugs killed thousands of innocent Sinhala youth and the International watchdogs kept quiet. No UN, UNHRC, or Amnesty International came to the rescue of these hapless people as they did for the LTTE. This time Ranil will do his worst before departing to foreign climes. He must be removed if the country is to prosper. He is the agent used by these foreign powers to divide up the country and break it up as they destroyed Borneo which is now a wasteland.

    Furthermore, the value of the rupee has plunged from 130 to almost 160 in the last three years thanks to these heartless people who will do the bidding of the big lenders and the Western masters to stay in power. The net result is that the cost of living has shot up for the average citizen. The goods from Sri Lanka have become cheaper for the countries who import our products. We lose both ways, we pay more for imports and get less for exports. Traitors such as these, if they were in the olden days, would have been publicly exposed and disposed of for their crimes against the people of Sri Lanka. Now instead they are lauded and treated as if they are heroes. This is real Kali Yuga.

    It is still up to the masses and the leaders to correct the downward course Lanka is now on. Choose the leaders carefully to those who put first the old style values of honor and patriotism.

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