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Sri Lanka no longer “uncomfortable” with inflation blot on economic record

Mar 10, 2014 (LBO) - Sri Lanka is no longer "uncomfortable" with the blot of high inflation in its economic record when meeting international agencies and visiting businessmen, a top official said.
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"We no longer feel uncomfortable to speak to the International Monetary Fund, the World Bank, the international rating agencies, the international business community, all the visiting investors," Treasury Secretary P B Jayasundera said.

"Because we can positively say what the government should do has been done very well.
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"

Jayasundera was addressing the business forum where Sri Lanka joined the AllWorld Network, a US-based effort to link up the fastest growing privately held firms in the world.

Money issues is kept as a government monopoly by modern states, with legal tender laws and taxes on the exchange of gold and silver, allowing a modern fiat money central bank unchecked by gold to generate inflation at will.

From the late 1960s inflation became a serious problem as the US printed money to fund the Vietnam War and President Nixon's populist policies undermining a link money had to gold.

Sri Lanka has had high inflation from around late 1970s, amid high deficit spending accom

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