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Sri Lanka labour unions kept pacified: CB governor

Dec 08, 2010 (LBO) - Sri Lankan government efforts to prevent labour trouble in recent years despite tough economic conditions should be considered part of its effort to support the business community, central bank governor Nivard Cabraal said.

"If we have good roads, that's a relief. If we have employment, 24-hour electricity and coverage throughout country isn’t that a relief?" The private sector often complains of lack of incentives to doing business but some government efforts go unnoticed, he told a forum on the outlook for exports organized by the Exporters’ Association of Sri Lanka.

"In the past five years you have seen good labour relations," Cabraal said. "That has not happened automatically.

"In many cases the president himself listens to trade unions to ensure good relations between employers and employees. It is important to ensure that situation continues - to ensure good labour relations."

Cabraal said macro-economic fundamentals have improved in recent months with double-digit inflation and interest rates brought down sharply and likely to remain so for the foreseeable future.

"We have had inflation at 12 percent on average annually for the past 30 years. It's not easy to have that - it's like havi

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