Almost always, in any country the benefits of growth do not reach the deprived segments of the society, quickly. The fact that over 50 per cent of the GDP is still concentrated in the Western Province and the fact that the share of the poorest 20 per cent of country in total household income is less than 4 per cent, shows that this situation is true in our country as well. The per capita income of the Western Province is over US dollars 1,900 whereas in the other provinces it is around US dollars 700-800. Further, the Gini coefficient of per capita consumption in Sri Lanka had increased at an annual rate of 2 per cent, from 1990 to 2000, higher than comparable countries in East Asia. These facts support the view that reducing inequality and alleviating poverty should be a main policy concern that has to be pursued with a pro-active strategy. That is probably why the Mahinda Chantana has identified several policy measures to fast track this shift, that the Western Province’s GDP contribution could continue on a downward trend as evidenced by the marginal decline in contribution from 50.9% in 2005 to 50.1% in 2006. In the meantime, the alternate view in this debate suggests that the more affluent persons of a country usually benefit faster when the economy grows rapidly and that even without any specific policy actions being implemented to address this situation, such gains will ultimately spill over to the deprived segments also, albeit at a slower pace.
The board of directors has an important role to play in establishing the overall culture of an organisation. It is also the ultimate body for resolving the type of complex ethical dilemmas I referred to earlier, and ensuring in particular that the reputation risks in new business strategies or products are carefully addressed. I hope that this conference and my speech, have demonstrated that high ethical standards in banks are neither a luxury nor an abstract ideal. Rather, they are a vital aspect of protecting and enhancing the bank’s brand image, and ensuring its long-term business survival. Behaving ethically is not only the right thing for banks to do, it also makes sound business sense. BIS Review 98/1999  4