By Chathura Pamunuwa
The Central Bank has proposed that the number of public holidays be reduced.

The Bank in its report for the year 2000 states that in place of religious holidays leave of a sufficient duration should be granted to public servants of the particular religious denomination.

The report states that a comprehensive review of labour laws would be helpful with a view to promoting new employment because current laws seem to discourage new employment.

It is irreconcilable that a country which has an unemployment rate of over 7 per cent should have laws which discourage new employment and labour mobility.

It states that economic growth rate which was six per cent in year 2000 had dropped to 4.5 per cent in the first quarter of this year. This is attributed to the reduction in exports, lower paddy harvest and increase in the consumption of fuel oil for the production of electricity by the CEB.

However, the report points out that there is the possibility of the growth rate increasing due to lowering of interest rates and more foreign investments.

It also states that the growth rate in the year 2000 had increased to 6.2 per cent while the employment rate had been reduced to 7.7% and foreign investments had increased by 27%.

The report adds that government expenditure which was 26.7% of GDP in the year 2000 had increased to 26.8% this year.