In this issue

The stability of a predictable and rule-based system

Predictability and its rule-based nature are two attractions of currency boards. For several reasons, an emerging economy may find these particularly attractive.

That a currency will depreciate is seen as inevitable in most emerging economies. However, the handful of countries that have currency boards, most notably Singapore and Hong Kong, have fixed exchange rates. Fixed exchange rates, due to their predictability and stability, promote trade and investment.

Currency boards are fixed exchange regimes. The strict discipline of a currency board prevents government profligacy. A government cannot use the central bank’s printing press to bridge the budget deficit unless it can provide the currency board with an equal amount of the anchor currency as reserves. Most currency boards have adopted the US dollar as their reserve currency. To make the commitment to convert to the reserve currency credible, a currency board holds reserves of foreign currency at least equal to the domestic currency in issue.

Ceylon had a currency board for about 70 years from 1884 until 1950 when the anchor currency was the Indian silver rupee. Professor Steve Hanke of Johns Hopkins University, known for his work as a currency reformer in emerging-market countries, features in our cover arguing for a currency board.

Echelon Magazine Description:

Intelligent Storytelling

The one thing that will define the Echelon magazine will be the quality of the storytelling. Echelon,published monthly, will cover in depth Sri Lanka’s most successful businesses, examine their winning strategiesand profile their leaders in immersive stories. Great stories are also never limited to words, and our approach includes rich photography, bold graphics and leading edge design which together will make for a compelling read.

But business doesn’t start and end in a boardroom;it extends to the golf club greens, to international travel and to pursuits that blurthe lines between commercial venture and sheer passion. The Echelon team will present the best in business and lifestyle coverage that will appeal to an exclusive and affluent readership: an otherwise hard to reach demographic.

Content will be developed by one of the most experienced and proven teams of editors, financial journalists, photographers and designers in the country.This team has already raised the bar for powerful and expertly crafted business news. Shamindra Kulamannage, will lead the editorial team.

The reputation of Echelon is being built on the separation between editorial and advertising. However we are also looking for the most creative and impactful new formats that can be applied in our magazines, iPad app as well as website to help our clients reach our audience. We are flexible and creative and we will have a solution for every single advertiser who wants to reach our audience.

We are passionate about creative results and about working with our advertisers to help them create bespoke multi platform creative solutions with our in house creative team and of course our sales team.

Echelon will be a great place to show off the products and capabilities of our clients because they will be surrounded by an editorial product that is expertly crafted, full of integrity and intelligence.