Concern has mounted over Sri Lanka's exchange rate policy amid reserve losses to defend a dollar peg.
There was a need for policy consistency and clarity in the economy which helps bring confidence, the most important factor, Cabraal said.
"From a banker's perspective, the most important factor in banking is confidence - that’s also the most forgotten factor. The key is to act decisively, with confidence."
Cabraal also said policy consistency and clarity shown by those in charge of an economy helps build confidence.
Policymakers must manage an economy by taking several different factors into account and maintaining a balance, he also said.
"There's also a need to look at the economy as a whole - often people talk of one or two items like the exchange rate, interest rates, unemployment, or of growth," Cabraal