📈 Remembering Dr. A.G. Karunasena: A Central Bank Luminary

A tribute to Dr. A.G. Karunasena, an "unsung hero" of Sri Lanka's Central Bank, highlights his profound contributions to economics and policy-making. • Early Career & Groundbreaking Research: • Joined CBSL in 1976. • Developed the first comprehensive Macroeconometric Model for Sri Lanka in 1983 during his PhD at McMaster University. • Model disaggregated sectors like tea, rubber, coconut, and rice to understand economic drivers. • His research suggested economic growth can be boosted by shifting government expenditure from consumer to producer subsidies. • Key Roles at Central Bank & IMF: • Headed the new Macro Planning Division, applying his model for policy simulations (e.g., impact of fertilizer subsidies on tea production). • Served as Alternative Executive Director for Sri Lanka's constituency at the IMF, securing a Standby Facility in 2000 during a balance of payments crisis. • As Director of Economic Research (DER), he advocated for a peaceful solution to the ethnic issue in the 2001 Annual Report. • Elevated to Assistant Governor in 2004, supporting CBSL modernization, restructuring IBSL, and initiating an inflation targeting framework. • International Leadership: • Appointed Executive Director of the SEACEN Centre in Kuala Lumpur in 2006, leading new research and training programs until 2012. Dr. Karunasena was known for his belief in economic policy backed by quantitative evidence, leaving a lasting legacy on Sri Lanka's economic analysis and central banking.