Treasury Secretary says the government and the Central Bank have lost their independence in setting fiscal and monetary policies

The government and the Central Bank have lost their independence in setting fiscal and monetary policies, the Treasury Secretary said in Colombo last week. The government and the Central Bank have lost their independence in setting fiscal and monetary policies, the Treasury Secretary said in Colombo last week. The falling government revenue has meant that increasing reliance is being put on attracting aid money, which is normally tied to a reform program, he says.

“The nation is compromising on all aspects. In terms of conducting fiscal policy the nation is talking to the donors as to how we should conduct our fiscal policy.
When conducting Monetary Policy the Central Bank is depending on the IMF,” said Dr. P. B. Jayasundera, Treasury Secretary.

Dr. Jayasundera was speaking to a group of accountants at the Institute of Charted Accountants on recent changes to tax law.

“There is no independent thinking. Though we claim that it is an independent Central Bank they cannot come up with something of their own,” he charged.

The Central Bank has been able to keep the monetary program on track over the last couple of years helping achieve low and stable