Prime Minister Matthew Wale called for closer alignment between monetary and fiscal policy to strengthen the resilience and stability of the Solomon Islands economy.
Speaking during the recent Golden Jubilee celebrations of the Central Bank of Solomon Islands, Wale said effective coordination between government fiscal policies and central bank monetary measures was critical for responding to economic shocks, managing risks and creating conditions that encourage investment and employment growth.
He reaffirmed the government's commitment to working closely with the central bank while pursuing legislative and policy reforms aimed at building a financial sector that is resilient, inclusive and responsive to the country's needs.
Wale stressed that economic reforms should be tailored to local circumstances rather than copied directly from other countries.
"What works in Singapore or London may not work in Honiara and what works in Honiara may not yet reach our outer islands," he said.
"We must have the confidence to adopt what works, adapt what needs adjusting, and set aside what does not fit our circumstances."
The prime minister said policy success should be measured by its impact on people's lives, particularly in a geographically dispersed nation where distance continues to challenge service delivery and economic participation.
He added that economic coordination must extend beyond fiscal and monetary policy to include political stability and governance reforms.
According to Wale, political instability and perceptions of sovereign risk have contributed to higher business costs in Solomon Islands for decades, discouraging investment and limiting economic opportunities.
"For 50 years, political instability and perceived sovereign risk have driven up the cost of doing business in Solomon Islands. My government is determined to address this," he said.
Wale said improving stability and investor confidence would be essential to unlocking sustainable economic growth and supporting the country's long-term development goals.
The remarks were delivered as the Central Bank of Solomon Islands marked its 50th anniversary, highlighting the institution's role in safeguarding financial stability and supporting economic development since its establishment.
