the remarkable achievements that we have made so far. hence, the challenge before policymakers is to continue to find ways to minimize disparities in wealth distribution without disturbing the overall efficiency in resource utilization or retarding the growth momentum. this is not a simple task, but is surely possible to do so. however, the common syndrome of this country is that many begin by saying : “ we can ’ t ”, or “ we are too small ” or “ we are not in a position to do that ” or some other negative claim. we have to, as a matter of urgency get out of that negative mentality. as we know, the sri lankan government has embarked on the pro - poor pro - growth policy with a focus on balanced regional development. the government has committed itself to improving socio - economic conditions of the entire island with a mix of infrastructure development, human capital development, and enterprise development while providing a safety net to the needy segments. to do so, the government is attempting to direct investments beyond the centre, focusing on public - private partnerships and promoting the utilization of resources in the provinces. in that way, both the private sector and the public sector will have to become engines of growth and development! in all these endeavours, our ultimate goal has to be the provision of better living conditions for our people. that is one reason why the statistics department of the central bank is in the process of constructing a prosperity index to ascertain national, provincial and district - wise economic prosperity once in place, the new index will be able to track regional performance, and we are hopeful that it would serve as a measure and a catalyst to encourage poverty reduction and to induce a faster trickle down effect. at the same time, we believe that there is great role for academics and professionals in the development of our country. in fact, the central bank has consciously recognized the importance of professionals ’ contribution and has made efforts to gain from their expertise and knowledge as well. for example, in january 2007, a monetary policy consultative committee was established in the bank, comprising of professionals, experts and representatives from other stakeholders in order to obtain their views on monetary policy implementation. your own chairman, prof. a d v de indraratne, chairs such committee and we have benefited immensely from the insights and advice rendered by such committee. in a similar manner, i am certain that the research findings that will be presented by you at the conclusion of this very timely conference, together with the professional views expressed

chains are expanding rapidly. in 2006, the per capita imported food intake was rs. 145 / - per day. • the number of banking outlets is increasing sharply. in the first 5 months of 2007 alone, 46 new units were added to our banking system. • the number of household appliances being sold, is increasing rapidly • the number of new epf accounts is increasing. • the number of people going abroad on holiday is increasing – just look at the queues outside the indian high commission of people who are hoping to go on pilgrimage. • the per capita incomes are rising. • more people are sending their children abroad for studies. • the number of “ wanted ” advertisements is increasing rapidly in almost all newspapers. nevertheless, the global picture of poverty and inequality is still quite gloomy. according to the world development report of the united nations, of the world ’ s 6 billion people, 2. 8 billion ( almost half ) live on less than two dollars a day, and 1. 2 billion ( a fifth ) live on less than a dollar a day. also, the average income in the richest 20 countries is 37 times the average in the poorest 20, a gap that has doubled in the past 40 years. hence, the distribution of global gains is extraordinarily unequal. worldwide inequality persists even on the socio - human front. although in general, human conditions have improved more in the past century than in the entirety of previous history, particularly in health and technological capabilities, several inequalities still exist. for example, in the poorest countries, only 4 out of 5 children live to celebrate their fifth birthdays, while in rich countries this ratio is over 99 per cent. while in rich countries fewer than 5 per cent of all children under five are malnourished, in poor countries as many as 50 per cent are. hence, there is a huge imbalance and inequality in distribution of socio - economic gains as well. in this context, it is also heartening to note that strategies of reducing poverty have evolved over the past several decades in response to broadened understanding and rethinking of the complexity of development. as we are aware, in the 1950s and 60s, many economic and political planners viewed large investments in physical capital and infrastructure as the primary means of development. by the 1970s, policymakers realized that physical capital was not enough, and that health and education were equally important. by the 1980s, emphasis was placed on improving economic management and