CBSL is the banker to the Govt. When market collusion does not enable the Govt., to borrow at reasonable rates, CBSL has to take treasury bills which inflating financing, as it compels CBSL to issue reserve money into the system which has multiple effects in increasing money supply and liquidity in the system. Primary dealers, specially the banks,  BIS Review 55/2007  3  have a responsible role to play in this regard and be mindful of unusually high bidding and its repercussions on the whole economy. 5. Investors and the business sector  One way of beating inflation is to enhance productivity. Improvements to the factor productivity should be introduced using improved technology and higher productivity methods. Investing in technology today will not only increase productivity but also help lowering product prices. They may have to look for foreign collaboration, joint ventures and partnerships if additional funding and technical skills are not available within the country. They should also facilitate investments outside the Western province and promote regional development and employment generation in outstations while using factors of production available in such areas. Businesses and investors have many opportunities under the Public Private Partnership (PPP) program. Given the Govt.’s commitment to commence large infrastructure projects during this year and some in 2008, the private investors and businesses could contribute to the development process, in particular, by participating in infrastructure projects through PPPs. It will help reduce financing of capital expenditure by the Govt.

Despite Asia’s diversity in people, culture and traditions, the region has been able to come together as a group to achieve greater integration in the areas of trade and investment. While trade remains an important contributor to growth in the region, of importance is that the pattern of trade of the Asian economies has changed significantly. This decade has seen the rise in intra-regional trade. Intra-regional trade in Asia has risen from 32% of total exports in 1995 to an average of 50% in 2008. Increasingly, as incomes rise in Asia, intra-regional trade will increase to meet the rising domestic demand of regional economies. More than half of the world’s population resides in Asia that has a favourable demographic structure that comprises of a significant young and dynamic segment. The growing middle class has altered the consumption and savings patterns in the region, providing the region cumulatively with a huge growing consumer market. Asia also has high savings which allows for higher consumption while still having surplus funds to finance regional investment activity. The rapid trade liberalisation across Asia has improved market access, creating a vast market for goods and services. In addition, bilateral and region-wide free trade agreements are set to expand further even as multilateral agreements continue to be pursued. The growing pace of intra-regional investment flows has also gained momentum to complement the region’s trade integration. Businesses in the region are leveraging on regional complementarities as well as taking the opportunity of the growing markets in the region.