BY SHOREYANN RAGOSO
Finance Minister Hon. Rexon Ramofafia has called for early action, stronger financial reserves and more local research to help Solomon Islands protect its economy from global shocks and natural disasters.
Delivering the keynote address at the Third Central Bank of Solomon Islands (CBSI), Asian Development Bank (ADB) and Asia-Pacific Applied Economics Association (APAEA) Joint Annual International Research Conference in Honiara on Tuesday, 27 October 2026, the minister highlighted three priorities for the government and its partners.
The conference, held at Heritage Park Hotel, focused on how small economies can manage global economic challenges, exchange rates and economic stability.
Minister Ramofafia said the country must prepare for difficult times before they happen, especially when global events can increase the cost of fuel, food and other imported goods.
His first priority was early and coordinated action.
He said the government had responded to oil price shocks by temporarily removing taxes on fuel imports to reduce the burden on households and businesses.
With El Niño risks increasing, he said more work was needed to prepare for disasters and support communities most at risk.
“It is far less costly to respond now than to repair the damage later,” he said.
For ordinary Solomon Islanders, early action could help reduce the effects of rising prices and protect families already struggling with the cost of living.
The minister’s second priority was protecting and increasing the country’s foreign reserves.
He said Solomon Islands’ foreign reserves, managed by CBSI, remained adequate, but the government wanted to strengthen them further and reach USD 1 billion.
He also revealed that plans were being prepared for a sovereign wealth fund. The fund would help protect income from natural resources for future generations and provide financial support during difficult times.
“Resilience must be built before it is needed,” he said.
His third priority was building local knowledge and skills through research.
Minister Ramofafia said the partnership between CBSI, ADB and APAEA, now in its third year, should continue to help Solomon Islands develop better data, research and skills to understand its own economic challenges.
He also welcomed students attending the conference and encouraged them to learn more about the national economy and how the country could prepare for future challenges.
The minister said Pacific countries faced many of the same problems, making regional cooperation important.
“Good research cannot change the price of fuel or the path of El Nino, but it can change how we prepare and how we respond,” he said.
CBSI plays a key role in maintaining price stability, managing monetary policy, advising the government on banking matters and ensuring the country has adequate foreign reserves.
Minister Ramofafia’s message was that protecting the economy requires preparation, financial strength and knowledge to help secure a better future for Solomon Islanders.
