Road Map:
Monetary and Financial Sector Policies for 2019
and Beyond
Delivered by
Dr. Indrajit Coomaraswamy
Governor
Central Bank of Sri Lanka
2 January 2019
1. Introduction
Your Excellencies, Members of the Monetary Board, Senior Deputy Governor,
Deputy Governors, Assistant Governors and Officials of the Central Bank,
Distinguished Invitees, Ladies and Gentlemen,
It is a pleasure for me to warmly welcome you to the presentation of the Road
Map of the Central Bank of Sri Lanka, which articulates the broad direction of
monetary and financial sector policies for the period 2019 and beyond.
I am also pleased to mention that we are continuing with our tradition of
sharing the future direction of policies through the twelfth Road Map of the
Central Bank of Sri Lanka. The Road Map is a well received and important policy
document which delivers several benefits to all stakeholders of the economy.
We expect that this announcement would guide and shape your own policies
and plans effectively which will ultimately contribute to the overall economic
development of the country and better living standards for our people.
Let me begin by explaining our policy stance and our assessment of the
economy over 2018. The Sri Lankan economy faced heightened challenges in
2018, emanating mainly from the global economic, financial and geo-political
developments that adversely affected the external sector. There were also
several domestic challenges. Political uncertainties, especially during the last
quarter of the year, amplified challenges to overall macroeconomic stability.
Sub-par economic growth continued in 2018 following subdued growth in 2017.
Favourable weather conditions supported a rebound in the agriculture sector
while the expansion in services activities has been broad-based.
However, industrial activities slowed in 2018 mainly due to the slowdown in the
construction sector. Consumer price inflation remained low in 2018 in spite of
temporary ups and downs due to volatile food prices and administrative price
adjustments. In response to the tight monetary policy stance pursued by the
Central Bank in the past two years, monetary and credit growth decelerated in
2018 from the higher levels observed in 2016 and 2017. An adequate expansion
in domestic credit flows driven by demand from the private sector was
witnessed during the year.
Being guided by these developments as well as considering impending risks
and challenges, we followed a cautious approach in relation to the monetary
policy conduct in 2018. Taking into account the favourable developments in
inflation and the inflation outlook, as well as the subdued performance in the
real economy, the Central Bank signalled the end of monetary policy tightening
that commenced at end 2015, by reducing the upper bound of the policy
interest rates corridor in April 2018. Nevertheless, considering the impact of
global developments that affected external sector stability of the economy,
the Central Bank maintained a neutral monetary policy stance in the ensuing
period.
The sustained high deficits of rupee liquidity in the domestic money market
compelled the Central Bank to reduce the Statutory Reserve Ratio (SRR)
applicable on all rupee deposits of commercial banks in November 2018, while
increasing policy interest rates to neutralise the impact on interest rates due to
the permanent liquidity injection arising from the reduction in SRR. We
followed this cautious approach with the broad aim of stabilising inflation at
mid single digit levels and anchoring inflation expectations to enable the
economy to reach its potential in the medium term.
In the external sector, the growth in export earnings was outpaced by the
expansion in import expenditure, although earnings from tourism, workers'
remittances, foreign direct investment (FDI) and debt related inflows to the
government helped cushion the balance of payments (BOP) to some extent.
The BOP experienced significant pressure on account of foreign exchange
outflows caused by tightening global financial conditions and the
strengthening of US dollar in view of monetary policy normalisation,
particularly in the United States, as well as the widened trade deficit. Similar to
the pressure that was observed in other emerging market economies, these
developments resulted in a sharp depreciation of the Sri Lankan rupee
particularly during the second half of the year. The Central Bank intervened in
the domestic foreign exchange market at times to prevent disorderly
adjustments in the exchange rate, while allowing demand and supply forces of
the forex market to determine its level and direction. The government and the
Central Bank introduced several short-term measures to address the pressure
in the external sector, although the external sector developments once again
highlighted the need for structural reforms to boost the tradable sector,
particularly by enhancing merchandise and services exports in the medium to
long run. The external sector was also affected by political instability during the
latter part of 2018. Political developments, compounded by concerns regarding
fiscal slippage in the lead up to the elections, were significant causal factors in
the decisions of all three major rating agencies to downgrade Sri Lanka's
sovereign ratings. This, in turn, negatively affected investor confidence.
However, such downgrading only on the premise of heightened political
uncertainty and anticipated rather than actual fiscal slippage cannot be
justified as there was no solid evidence of a deterioration in macroeconomic
policies or fundamentals. This was evidenced by the good progress made in
completing the fifth review of the Extended Fund Facility (EFF) of the
International Monetary Fund (IMF) until 26 October 2018. Sri Lanka continued
to receive the assistance under the EFF and we received the fifth tranche of the
programme in June 2018. We look forward to the successful completion of the
IMF EFF programme in 2019. We are optimistic that the staff level agreement
reached in principle with the IMF on the fifth review will proceed to the next
level.
Although the government continued its efforts towards fiscal consolidation,
the performance on the fiscal front was rather mixed in 2018. Lower than
expected revenue collection is likely to challenge the achievement of the
targeted budget deficit for 2018. However, the primary balance is expected to
record a surplus for the second consecutive year in 2018. This would be only
the third time since 1955. Continued fiscal consolidation remains essential to
build on the achievements already realised in the fiscal sector and to support
the conduct of monetary and exchange rate policies without any fiscal
forbearance.
As announced in last year's Road Map, the Central Bank is progressing towards
implementing flexible inflation targeting (FIT) as its new monetary policy
framework by 2020. We have taken several policy initiatives to facilitate the
transition to FIT during 2018. While maintaining appropriate policy coordination
with the government, we initiated the drafting of necessary legal amendments
to strengthen the mandate of the Central Bank to maintain low inflation, while
strengthening its autonomy, transparency and accountability.
During 2018, we were also able to implement several policy measures with a
view to maintaining a stable financial system with subdued macroprudential
concerns, while increasing the resilience of the financial system to global and
domestic shocks. In order to strengthen the legal and regulatory framework of
the financial institutions, a new Banking Act is being drafted, while also
initiating amendments to other legislation related to the financial sector.
Resolution actions for distressed companies were taken in the form of
imposing stringent regulatory actions such as restriction on business as well as
suspension and cancellation of licences. Consolidation will be encouraged both
in the banking and non bank sectors through steady increase in capital
requirements. Priority will be attached to achieving sustainable structures in
both the banking and non bank sectors in an orderly manner. It is our intention
to send out the clearest possible signal that there will be no regulatory
forbearance.
We also continued to take measures to strengthen the payment and
settlement infrastructure in line with our statutory responsibility of developing
an efficient and stable national payment and settlement system capable of
catering to the country's growing payment needs. To promote digital payment
mechanisms in the country, a national standard for QR code based payments
was introduced during 2018, while progress was made in establishing the
National Card Scheme. The Central Bank also continued to perform its currency
management function to facilitate smooth transactions in the economy, while
taking measures to preserve the quality of currency notes in circulation.
Priority was also attached to strengthen the Central Bank's agency functions in
2018. Public debt management was carried out in a way that the government's
financing requirements were met at the lowest possible cost with a prudent
degree of risk, while aiming to maintain debt sustainability. There was
continued focus on sustaining the transparency and efficiency of the auction
system for Government securities as well as on developing a viable medium
term debt management strategy. In consultation with government, we also
initiated actions to implement liability management exercises on future debt
obligations based on the newly enacted Active Liability Management Act
(ALMA).
The liberalisation of foreign exchange transactions was advanced with the
introduction of the Foreign Exchange Act No. 12 of 2017 (FEA). Procedures for
inward capital flows were further simplified and streamlined for smooth
transferring of funds for investment, while limits for outward capital flows
were enhanced in selected areas giving local investors access to a wider global
market.
As a facilitator, the Central Bank continued its development finance and
regional development activities during 2018 with the broad aim of enhancing
inclusive and balanced economic growth and financial inclusion in the country.
Progress was made in formulating the National Financial Inclusion Strategy.
Further, the Central Bank worked towards improving Sri Lanka's global position
with regard to the implementation of Anti-Money Laundering and Countering
the Financing of Terrorism regulations and we entered into new MOUs with
several government bodies and institutions during 2018. We are working
towards Sri Lanka being removed from the Financial Action Task Force's (FATF)
'grey list' by mid 2019.
A number of measures have also been taken in the pursuit of greater
accountability and transparency. In particular, following the recommendations
of the Presidential Commission of Inquiry to Investigate, Inquire and Report on
the Issuance of Treasury Bonds, measures are being taken to strengthen
several laws applicable to the Central Bank. Measures were also taken to
reform the operations relating to the issuance of government securities,
introduce a new investment policy framework for the EPF, strengthen internal
audit and introduce the code of conduct for employees and the members of
the Monetary Board. The procurement process for several forensic audits is
underway, and forensic audits are to be conducted by entities with global
practice.
In a challenging global and domestic environment, the Central Bank is steadily
improving its policy frameworks to mitigate possible risks and thereby achieve
its broad objectives of economic and price stability and financial system
stability. Our actions would be effective and yield desired outcomes only if
certain conditions are met, especially the commitment of the government to
macroeconomic stability. Given the prevailing low growth trajectory, growth
promoting policies and structural reforms are much needed priorities for the
government. This must, however, be done without disrupting the fiscal
consolidation process. For this to happen, the enabling environment must be
created for the private sector to play a more active role. We need consistent
and predictable policies from the government and a more dynamic and
entrepreneurial mindset from businesses.
Government's initiatives aimed at improving the economic and social
infrastructure of the country, enhancing productivity, up- scaling skill levels of
the labour force as well as expanding domestic production capacity are vital
elements to support an accelerated and sustainable level of economic growth,
while maintaining a continued low inflation environment. Timely
implementation of consistent and coordinated policies in a coherent manner is
also essential to ensure the realisation of the expected outcome of such
policies. In this context, this Road Map intends to set the basis for strong
policies and credible frameworks to achieve macroeconomic stability with the
support of the government and private sector stakeholders.
The outline of the Road Map 2019 is as follows:
Section 2: The Central Bank's monetary policy strategy and policies for 2019
and beyond
Section 3: The Central Bank's policies related to the financial sector
performance and stability in 2019 and beyond
Section 4: Policies Related to Ancillary and Agency Functions
Now, let me elaborate further on these aspects.
2. Monetary Policy Strategy and Policies for 2019 and Beyond
The Central Bank conducts monetary policy in an increasingly forward looking
manner with the aim of maintaining inflation at low and stable levels in the
medium term thereby supporting the economy to reach its potential.
In 2018, the Central Bank conducted its monetary policy in a challenging
environment with rapidly evolving adverse global conditions as well as several
upside and downside risks on the domestic front. New developments in the
global economy in the wake of rate hikes in the United States and the
economic normalisation in most advanced economies have demanded
monetary authorities around the world to adjust their monetary policies
accordingly. The Central Bank of Sri Lanka also had to consider domestic
developments, such as the depreciation pressure on the currency due to
capital outflows and the widening trade deficit, subpar economic growth,
deceleration in monetary aggregates and credit, moderate levels of inflation as
well as continuing deficit liquidity conditions in the money market.
The tight monetary policy stance pursued by the Central Bank, since end 2015,
by way of raising the Statutory Reserve Ratio (SRR) and policy interest rates
yielded the desired outcomes, especially on demand driven inflation and trends
in money and credit aggregates compared to 2016 and 2017. Such
developments, in particular, the favourable developments in inflation, inflation
outlook and the trends in the monetary sector, in an environment of lackluster
growth performance, induced the Central Bank to signal the end of the
tightening cycle in early April 2018, by way of reducing the Standing Lending
Facility Rate (SLFR) by 25 basis points. Nevertheless, global economic
conditions and the pressure on the exchange rate has compelled the Central
Bank to maintain a neutral monetary policy stance since April 2018.
In the conduct of monetary policy, market based policy tools, particularly policy
rates and open market operations (OMOs) were widely used, while the SRR
was also used as a tool of injecting liquidity to the market on a permanent
basis. In view of the large and persistent shortage in rupee liquidity, the
Monetary Board decided to reduce SRR applicable on all rupee deposit
liabilities of commercial banks to 6.00 per cent from 7.50 per cent in November
2018. The reduction in SRR released a substantial amount of rupee liquidity to
the banking system, which could have led to a reduction in interest rates and
excess aggregate demand. Therefore, in order to neutralise the impact of the
SRR reduction and maintain its neutral monetary policy stance, the Central
Bank raised policy interest rates simultaneously.
Since the announcement of the transition towards FIT, we have broadly
maintained low levels of inflation in spite of some occasional upticks and
downturns due to various demand and supply shocks stemming from the
external and domestic fronts. Benefiting from prudent and proactive monetary
policy measures that were also supported by several macroprudential
measures, monetary expansion was contained at desired levels, thereby
supporting the maintenance of low levels of inflation during 2018.
As you all know, the Central Bank has an unblemished track record of
maintaining single digit inflation continuously for a decade. This also shows the
Central Bank's strong commitment to price stability, which it considers to be of
utmost importance to create an enabling environment for the economy to
achieve an accelerated trajectory of economic growth, to uplift the standards
of living of the people. The Central Bank will be resolute in preserving this
achievement of a low inflation environment going forward irrespective of
domestic and international challenges that we may face in future.
This is the prime reason why the Central Bank has embarked on a mission to
upgrade the monetary policy framework with a view to strengthening the
ability of the Central Bank to deliver sustained price stability amidst a rapidly
evolving environment characterised by elevated uncertainty. During the year
2018, significant progress was made towards the transition to FIT in terms of
initiating necessary amendments to the Monetary Law Act (MLA) with a view
to establishing a strong Central Bank mandate, building effective fiscal-
monetary coordination and further improving technical and institutional
capacity.
Let me elaborate on a few important areas in relation to the progress towards
FIT. Last year, we highlighted the need and the importance of strengthening
the existing mandate of the Central Bank to perform its key tasks related to
price stability. It is widely accepted that a strong legal mandate is an essential
prerequisite for the successful adoption of FIT as it is considered the linchpin
that holds the entire framework together. Hence, as an important step, the
approval of the Cabinet of Ministers was obtained in principle to introduce
comprehensive amendments to the MLA, particularly in the areas of
strengthening Central Bank independence and facilitating the adoption of FIT
as the monetary policy framework, in addition to other amendments to
improve governance of the Central Bank, strengthen financial sector oversight
and also to boost fiscal-monetary coordination. Accordingly, the Central Bank,
assisted by legal experts from the International Monetary Fund (IMF), is in the
final stages of drafting the revisions to the MLA, which will address long
standing concerns, such as the focus on non-core and quasi-fiscal activities,
monetary financing as well as limits to Central Bank autonomy by way of clearly
demarcating the powers and functions related to monetary policy. In addition,
the remit of price stability will be elevated to the status of the prime objective
of the Central Bank. The revised legislation will also facilitate institutional
arrangements for setting inflation targets and improvements to monetary
operations, as well as macroprudential tools. These legislative amendments
would not only improve the overall focus of the mandate but would also boost
the credibility of the Central Bank through an enhanced governance
framework and autonomy as well as greater accountability and transparency of
the Central Bank. We expect to submit the amended MLA to the Cabinet of
Ministers and the Parliament for approval this year.
Another important element in our transition towards FIT is improving the skills,
capabilities and capacities of our staff as well as the systems and procedures to
establish a solid framework for forward-looking monetary policy conduct. A
key step towards this advancement was when we partnered with the IMF,
4 years back, to develop a comprehensive, model-based Forecasting and Policy
Analysis System (FPAS) to enhance the monetary policy decision making
process. Substantial progress has been made in this regard, yielding a marked
improvement in the modelling and forecasting capacity of the Central Bank,
thereby enhancing the forward-looking monetary policy decision making
process. The details of this modelling framework are in the public domain now.
Going forward, the Central Bank will focus on devoting resources towards
further improving technical capacity and infrastructure, which would help
generate timely and reliable model-based projections for macroeconomic
analyses. The Central Bank has already planned to launch a number of new
surveys and compile an array of new indicators to support monetary policy
analysis. We continuously endeavour to improve the existing data collection
and compilation efforts. These include several production trends related early
warning indicators, upgraded price indices, extension of PMI surveys to sectors
that need focused attention, and several digitalisation initiatives. We are also in
the process of further expanding the household sector Inflation Expectations
Survey (IES) beyond the Colombo District through the Country-Wide Data
Collection System (CWDCS) with the intention of improving its coverage and
precision.
As we have highlighted on many occasions, strong commitment and the
support from the government is essential towards adopting FIT as the
framework for monetary policy. It is heartening to note that the government
has recognised FIT as the prospective monetary policy framework for Sri Lanka
and it has been adopting policies aimed at fiscal consolidation in the medium to
long run. We welcome government's efforts related to revenue based fiscal
consolidation, which is aimed at raising revenues, while rationalising
expenditure of the government. We expect that implementing the new Inland
Revenue Act, improving tax administration supported by the full roll-out of the
RAMIS system and improving tax compliance will be instrumental in raising
revenues. In addition, introducing measures to rationalise expenditure,
strengthen public debt management through the enactment of the Active
Liability Management Act, No. 8 of 2018 (ALMA) and introduce required
reforms to State Owned Enterprises (SOBEs) as well as reinforce the Medium-
Term Debt Management Strategy (MTDS) aiming to contain the exposure of
foreign currency liabilities were all encouraging moves by the government.
Similar to other country experiences, the inflation target in the FIT framework
is expected to be decided jointly by the government and the Central Bank.
Hence, the FIT framework requires these two institutions to work together, as
there should be no misalignment between fiscal and monetary policy.
The Central Bank will continue to resort to active OMOs to manage liquidity in
the money market, thereby guiding the short-term market interest rate, which
is the key operating target to navigate inflation in the targeted range. I wish to
emphasise the fact that OMOs are a strategy to manage market liquidity to
align short term market interest rates with the policy stance and not a
mechanism to print new money by purchasing or holding Treasury bills by the
Central Bank as wrongly interpreted by some analysts. A clear distinction must
be made between such OMOs, widely practiced by central banks, and
monetising the fiscal deficit through the central bank purchasing Treasury bills
issued on behalf of the government. Further, we have implemented several
measures to provide more information to market participants thereby
facilitating an efficient price discovery process in the financial markets. The
Central Integrated Market Monitor (CIMM) system was introduced, in January
2018. The system captures vital market information from the call money, the
government securities and the foreign exchange markets. Daily liquidity
estimation was further improved with the implementation of the liquidity
reporting system through the CIMM. Further, a policy intervention by way of
restricting non- bank primary dealers from participating in OMO auctions was
made in the money market with a view to strengthening the signaling effect of
OMO auctions. Non-bank primary dealers continued to enjoy access to
standing facilities and the intra-day liquidity facility. Meanwhile, at the most
recent policy rate adjustment, we narrowed down the policy rate corridor to
100 basis points with a view to reducing the volatility in overnight interest
rates.
Looking ahead, we are in the process of exploring the feasibility of a single
policy rate instead of the current corridor system to give clearer signals on the
interest rates, reduce volatility in the call money rate and increase the
transparency in the monetary implementation process. Also, the hair cut policy
relating to the pricing of securities will be reviewed in line with international
best practices to ensure smooth operations in the money market. We will be
looking into expanding money market activities in a comprehensive manner by
introducing new instruments such as Interest Rate Swaps (IRS) and non-
deliverable forwards (NDF).
In order to improve the competitiveness of the banking sector, the Central
Bank is also planning to introduce a more cost reflective alternative benchmark
interest rate, which will be based on the marginal cost of banks.
Although we do not consider the exchange rate as an objective of monetary
policy conduct, a market-based exchange rate remains key instrument to
facilitate the inflation targeting framework. To this end, the Central Bank will
continue to follow a more market-based exchange rate system, allowing the
exchange rate to act as the shock absorber in the envisaged FIT framework.
The FIT framework brings about a qualitative change in the pass-through of the
effects of currency deprecation onto the overall rate of inflation. By adopting
forward looking and proactive monetary policy formulation, the cost-push
effects of depreciation can be countered by managing aggregate demand
through interest rate adjustments to ensure inflation remains within the
targeted range.
Being guided by this principle, since September 2015, we have allowed greater
flexibility in the exchange rate. However, during 2018, we saw a significant
depreciation of the exchange rate amidst global market conditions, particularly
with the surge in capital outflows, increased pressure on the current account
as well as excessive speculation in the market. During such times, we need to
ensure orderly adjustment in markets. Hence it was necessary for the Central
Bank to intervene in a prudent manner without sacrificing much of our
reserves. Going forward, the Central Bank will continue to adopt an exchange
rate policy, with cautious interventions at times of excessive volatility in the
forex market. This policy is also designed to maintain the competitiveness of
the exchange rate and support the rebalancing of the current account, thereby
supporting a gradual buildup of foreign exchange reserves as an external
buffer.
Due to the reversal of foreign capital flows in view of rising global interest
rates, the country's ability in financing the current account deficit through
financial flows, while strengthening reserves, would be a challenging task.
Without achieving a sustainable deficit in the current account and attracting
long term, non-debt creating financial flows in the form of foreign direct
investments (FDI), the external sector will remain vulnerable even in the
medium and long term. Hence, a rapid boost in exports and FDI should be the
priority for policymakers, without which the external sector will remain
vulnerable to short term domestic and external shocks. A significant growth of
merchandise exports of at least 10 per cent with annual FDI flows in the range
of US dollars 2 to 3 billion, supported by healthy earnings in the services sector
and continuing contributions from workers' remittances are needed to ensure
a gradual rebalancing of the current account and a strong financial account.
Hence, sustained measures are needed to improve investor confidence to
ensure that short term vulnerabilities are not translated into long term
structural deficiencies.
Foreign reserve management activities of the Central Bank will continue to be
based on a model based Strategic Asset Allocation (SAA) framework, which
was developed with the support of the Reserve Advisory and Management
Program (RAMP) of World Bank. This methodology is expected to ensure that
foreign reserves are managed with the objective of ensuring an adequate level
of liquidity, a reasonable return in comparison to the benchmarks and to
exploit any active strategies with the view of making an excess return if the
market conditions permit. Further, the Central Bank is in the process of
introducing a superior alternative USD/LKR reference rate for the benefit of all
stakeholders, including foreign investors.
As you are aware, in view of the deterioration in the BOP and to support the
government's reform agenda, Sri Lanka obtained a three-year Extended Fund
Facility (EFF) from the IMF, in 2015, and we have already received five tranches
of this Facility. Although the developments over the past weeks have delayed
the progress that Sri Lanka has been making under the IMF Programme, we
hope to keep the IMF Programme on track this year. While this will
categorically support the country's external sector, the reforms would also
help boost investor confidence and productivity of the economy. These are key
drivers in enhancing growth of the economy.
As inflation targeting involves managing and anchoring inflation expectations
effectively, transparency of monetary policy, particularly in terms of plans,
objectives and decisions, is of utmost importance. Hence, as transparency is
achieved through effective communication, as a prospective inflation targeter,
the Central Bank is very conscious of the need for a well devised
communication strategy.
Accordingly, a number of initiatives have already been taken by us to enhance
the communication strategy. We have enhanced the analytical value of the
regular monetary policy press releases with the support of the IMF, while
maintaining clarity, simplicity and enhancing the forward looking approach. In
addition, we have initiated programmes on educating, particularly journalists
and other stakeholders, regarding FIT. Further, several measures are in the
pipeline, including the issuing of regular Monetary Policy Reports, which will be
developed into Inflation Reports in the future and expanding the public
awareness outreach programme, which will be implemented during next two
years as set out in the road map for FIT.
As another important step, we re-commenced publishing an advance release
calendar for regular monetary policy announcements last year. Continuing this
practice, we wish to present the advance release calendar for monetary policy
announcements for the year 2019 as set out below.
Monetary Policy Announcements in 2019
Announcement No. Date of Announcement
1 22 February, Friday
2 10 April, Wednesday
3 31 May, Friday
4 12 July, Friday
5 23 August, Friday
6 11 October, Friday
7 15 November, Friday
8 27 December, Friday
Currently, although the global economy is somewhat less robust than it was in
the first half of 2018, the pace of global growth remains strong pointing to
further normalisation of monetary policy in major economies. This has
necessitated most emerging market economies to adjust their monetary policy
in view of addressing economic imbalances associated with capital flows,
currency depreciation, trade wars, etc. Taking such trends into consideration
and responding to domestic economic developments, we will continue to
remain vigilant in formulating our monetary policy to ensure sustained
economic and price stability in Sri Lanka.
3. Financial Sector Policies for 2019 and Beyond
In fulfilling the responsibilities entrusted by the MLA, the Central Bank
continues to foster a vibrant, resilient and strong financial sector, which
facilitates economic growth through efficient allocation of resources. In pursuit
of this, the Central Bank acts as the apex regulatory and supervisory institution
of the financial system. It seeks to promote dynamic and stable financial
institutions, while facilitating an efficient payment and settlement system.
In 2018, the financial sector performed well amidst challenging market
conditions in the domestic as well as the global environment. Ass