Central Bank Act passed, ensuring independence, strict money printing restrictions: Siyambalapitiya

16 September 2023 11:24 am Views - {{hitsCtrl.values.hits}} 9 Bookmark

CHATURANGA PRADEEP SAMARAWICKRAMA Follow

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The Central Bank Act, effective from yesterday (15), has made the bank and its activities more independent, according to acting Finance Minister Ranjith Siyambalapitiya.

Under the new Act, money printing by the Central Bank is now limited to exceptional circumstances, such as special security or health issues and cannot exceed 5% of the value of issued Treasury Bills.

The Central Bank is also required to work towards an inflation target and provide reasons if it fails to meet it.

Notably, the Treasury Secretary no longer participates in the General Board of Governors and the Monetary Policy Board of the Central Bank. The qualifications of board members are now included in the Act and require approval from the Constituent Assembly.

"Those appointments have to be approved by the Constituent Assembly. In addition to this, the Minister further mentioned that Parliament will have the power to summon the Governor of the Central Bank," the Minister said. (Chaturanga Pradeep Samarawickrama)

Comments - 9

Easy Money Saturday, 16 September 2023 11:56 AM

Even though The Money Printing Agency is partially prohibited from money printing , Government banks and commercial banks still have the power to create more easy money as they grant loan. They keep the bond (Loan) as a security and just type the loan amount on their computer

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Neo Saturday, 16 September 2023 12:11 PM

Bad news for Anura Kumara.

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Tom Saturday, 16 September 2023 12:25 PM

As a norm in SriLanka, citizens will elect a different party to lead the country soon and they will reverse all changes to suite their own interests including printing money to stay in power.

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Fred Saturday, 16 September 2023 12:55 PM

The option to print money is still there and with Sri Lankas past history can't expect much belt tightening.A genuine act and a more pragmatic one will be to do away with all privileges in the public sector instead paying a consolidated salary to compensate, will save the country a lot, millions or billions in savings and lead to a more productive cost conscious society

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Sambo Saturday, 16 September 2023 01:00 PM

Before you passed this you have printed all the monies you want. So now its no issue,

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Kandiah Balendran Saturday, 16 September 2023 05:28 PM

Amount of excess money already printed will cause inflation for a long time.

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Foot note Saturday, 16 September 2023 08:06 PM

Only the printing restricted but issuance regulated by the executive, always FM who is above the act.

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Do Doo Dooo Chin Sunday, 17 September 2023 08:52 AM

Hay Siyambalapitiya, don't talk rubbish. You and Ranil are the worst poisoners creatures dumped Taxes and stole our EPF and ETF money.

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Guna Balusinham Monday, 18 September 2023 03:59 AM

This man not even not aware of the meaning of Independence! Just wasting public money by talking and doing unwanted rubbish with an unwanted refused man!

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