of the then prevailing exchange rate system and the crawling band regime to sustain themselves. immediately after the float, the market experienced some volatility as is usually expected. however, this volatility has been contained overall since then. this, not only brought confidence to the market, as evidenced by increased foreign exchange inflows, but also allowed greater flexibility and market opportunities to foreign exchange dealers of commercial banks. subsequent to the float, the central bank became a net buyer of foreign exchange from the market, in sharp contrast to its experience in the period prior to that. our objective with regard to the foreign exchange market is to ensure an orderly adjustment of the exchange rate, without excessive volatility. such adjustment should reflect the emerging economic fundamentals of the country. we should ensure that demand and supply mismatches are addressed on time so that there is no excessive volatility in the exchange rate. turning to the theme of this year ’ s conference, i. e. “ is it time for a common currency in the saarc region? ”, i believe that it would give rise to much interesting and thought provoking discussion and debate. we know that the saarc was established in 1985, with the objective to provide a platform for the peoples of south asia to work together in a spirit of solidarity, trust and understanding. it aims at accelerating the process of economic and social development of member countries. i believe the considerations of the timeliness to introduce a common currency for the region will be supportive towards the objectives and aims of saarc as well. while taking note that deliberations such as these would definitely lay the foundation for future developments in the saarc region, i take great pleasure in inaugurating this conference today and wish you all success with the conference. and i would also like to urge you to take a little time off to visit some places of interest, while you are in this beautiful country, sri lanka. thank you.

industry loses its reputation, it is difficult to regain the same irrespective of whatever is being done by some genuine microfinance practitioners. the damage to the industry is done by some “ black sheep ” who are not controllable by other genuine performers. in this manner, the quick returns are earned by “ ill - willed ” practitioners, but the social cost has to be borne by the entire industry. hence, the major challenge faced by microfinance industry today is to save itself from the spurious micro - financiers. who is a poor person? the poor are normally defined by reference to income level or calorie intake or the level of opportunities available. all these definitions represent some aspects of the poor which are important. yet, they do not accurately depict the real nature of the poor. a poor person is a person who is unable to assess the risks faced by him and take the required mitigating measures to avoid them. the risk factor is more suitable to identify the poor, because the poor have to operate in a market which is full of risks. if he can successfully wade through the risks, he could succeed in the market as well. if he fails, he would remain a poor forever having to depend on outside help. greed is the killer not many in a society would be able to correctly assess the risks faced by them. if they are unable to assess the risks, then, they cannot expect to take risk mitigating measures as well. many reasons can be adduced to this general failure of individuals to assess risks appropriately. they may not have been taught to assess risks. or, their risks would have been assumed by others, chiefly the government, and as a result, the moral hazard behaviour would have prompted them to take unnecessary risks. even when they are educated and there are no opportunities for moral hazard practices, they may still take risks purely guided by their extreme greed. when the greed overtakes the rational mind, the individual may be blind to what he would get if the scheme fails. people belonging to both rich and poor categories fall into this last category. it is these people who normally fall easy prey to cunning tricksters who are planning to strip them of their wealth by making false promises. all that is necessary is to arouse, by means of a well - orchestrated marketing plan, their greed. the spurious micro - financiers use person to person contact method to outreach potential victims and lure them to leave their