Wednesday, July 6, 2016

The Central Bank has lost its way! What should be its top priority?


Unfortunately the Central Bank is staffed with losers, who are the highest paid public servants in Sri Lanka, but who are unable to take a holistic view of what ails the economy, and how to fix it. They may have PhDs but that is as good as flushed down the toilet when they act like SPITEFUL PUBLIC SERVANTS who merely want to take down in any way they can, those who are successful because they don’t like people making money out of their foolishness.

Yes we have staffed the Central Bank NOT WITH RISK TAKERS for the Country’s best interest, but with spiteful, and vengeful third rate human beings, WHO DON’T HAVE THE BEST INTERESTS OF THE COUNTRY AT HEART.

So what is the best interest of the Country today? Simple. To reduce the annual interest payment on foreign loans by Rs500Billion! You can do it, in this window of low interest rate environment. In fact NO ONE IN THE CENTRAL BANK IS working on that project today. YES NO ONE.

But you have a whole team working on trying to take down the most successful bond trader, because you don’t understand what risks and rewards in bond trading! It is the past. You cannot with 20/20 hindsight say some one made so much or not! Just like I castigated the idiotic Auditor General for even taking two dates out of context and saying Rs1.6B was lost to the State, because that is purely subjective. If the interest rates went the other way the State could have made Rs1.6B and so it is like the stock market, you take a view and invest, and that is the same for BOND Auctions. You win some and you lose some.

You DON’T go around picking off JUST the winnings and say money was made from insider trading, and through inducements. YOU WILL NEVER HAVE A VALUABLE PRIMARY DEALER WHO WILL BE ABLE TO BENEFIT THE SL ECONOMY BY TAKING BIG RISKS – IN FUTURE.

You will have only the risk averse bottom fishers, who will not take a risk, and so by doing so, will not make sure that SL will be able to sell their bonds to the lowest bidder or conversely in interest rates.


To put it another way, I will buy US$1B in SL bonds yielding 2% if I can make Rs500M in the secondary market tomorrow, but I will not if the spiteful Central Bankers ask me how I made Rs500M the next day? As if I was a crook! I took a risk, that they will not take, and won, so why should they ask me for details?

THE CASE IS CLOSED - GET IT!

2 comments:

  1. The combination of the spite of the Sri Lankan public servant against the private sector risk takers, and the jealousy of the bourgeoisie who are unable to make a killing out of calculated risk, means that Sri Lanka will never be able to as a Country, get the best deal for its citizens, which should the sole and top priority of the Central Bank.

    A safe pair of hands is the last thing we need today, if we put the Country's interest foremost, and personal secondary.

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  2. This is the only blog in Sri Lanka today, that puts the people's interest ahead of that of the establishment. Every other media, is merely parroting what the establishment wishes to see and hear to perpetuate their incompetence!

    Time to expose the canard and call a spade a spade. The thing is the media still show a spade as a shovel, and the people take it hook like and sinker. GROW UP PEOPLE and understand what is best for you before you drown under the weight of a dead weight establishment!

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