The Central Bank of Sri Lanka (CBSL) has refuted recent claims that it printed Rs. 100 billion worth of currency notes through open market operations, calling these reports “completely baseless.”
In an official clarification, the CBSL explained that open market operations, a standard practice, involve the provision of liquidity as part of the bank’s efforts to maintain price stability by managing interest rates. This process, it emphasized, cannot be equated to “money printing.”
The CBSL further noted that recent reports appear to misinterpret regular auctions and other monetary activities conducted by the bank within the open market framework. It clarified that no new currency notes have been printed, nor has there been any improper issuance of funds to finance government spending.
Instead, the CBSL stated, these operations are part of its routine efforts to uphold its price stability mandate.
