Essential economic policies must be implemented regardless of whether they command public support, Central Bank Governor Dr Nandalal Weerasinghe said.
Delivering a lecture at the University of Kelaniya, he said the Central Bank had already taken difficult decisions and implemented stringent policies to safeguard the economy, and would not hesitate to act further when necessary.
He warned that failing to implement essential measures solely because they were unpopular could ultimately cause serious harm to the country.
Weerasinghe said national requirements could necessitate tax increases, although most people opposed paying higher taxes. Such decisions could provoke public protests and create instability, he acknowledged.
He said the Government therefore had a responsibility to explain clearly how tax increases or reductions would affect the economy. Effective communication could help the public understand the policies and support their successful implementation.
Emphasising the importance of making tax adjustments at the right time, he said the Government must recognise that some sections of society would oppose any tax increase.
Weerasinghe added that the economy had achieved a degree of stability despite the severe political and economic crises of recent years because essential, though unpopular, decisions had been implemented at the appropriate time.
