ABA members visit Central Bank of Sri Lanka

During the HNB & ABA Short Term Visiting Program held in Colombo, ABA members participating in the program, together with ABA officers and Hatton National Bank’s officers visited the Central Bank of Sri Lanka (CBSL) on May 30, 2024, where they were received by key officers of the Bank Supervision Department led by Director Ms. Rukshana Jayatillake.


In her presentation, Ms. Jayatillake highlighted the following:

(a) The CBSL is the apex financial institution in Sri Lanka and is responsible for the administration of the monetary, financial and payment systems of Sri Lanka..

(b) The governing structure of CBSL comprises two parallel decision-making bodies; namely, the Governing Board (GB) and the Monetary Policy Board (MPB); both of which are headed by the Governor.

(b.i) GB – oversees the administration and management of the affairs of the CBSL and determines general policies of the CBSL other than the monetary policy.

(b.ii) MPB – formulates monetary policy of the CBSL and implements a flexible exchange rate regime in line with the flexible inflation targeting framework in order to maintain domestic price stability.

(c) In addition to its primary objective of maintaining domestic price stability, the CBSL seeks to achieve and maintain a healthy and stable economic and financial system while maximizing resource utilization.

(d) CBSL is responsible for conducting monetary policy in Sri Lanka, which mainly involves setting the policy interest rates and managing the liquidity in the economy. The monetary operations of the Central Bank influence interest rates in the economy, affecting the behavior of borrowers and lenders, economic activity and ultimately the rate of inflation. Therefore, the Central Bank uses monetary policy to control inflation and keep it within a desired path.

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