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Tinkering With Monetary Laws


The amended Monetary Law will refocus the Central Bank to key objectives of economic, price and the financial system stability.

The Central Bank presently handles activities like Exchange Control, the Employees Provident Fund and public debt.rn

rnEconomists say that these functions are not performed by Central Banks in the modern world and could be in conflict with its core activities. Under the present Act, which was passed in 1949, the Central Bank has overlapping responsibilities like maintaining price stability while also handling government debt issues.rn

rnldblquote All towards the development of the economy," says Ms. Sarojini Kadurugamuwa the Legal Director of the Central Bank.

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rn

rnBank officials say that the amendments to the Monetary Law is the first step in the banks reform effort that will also see private sector representation in the monetary board.rn

rnThe amended law will allow two private sector representatives into the monetary board.rn

rnldblquote It has been proposed in the

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