A special meeting was held in Parliament yesterday to brief Members of Parliament on the duties of the Central Bank of Sri Lanka (CBSL), under the patronage of Speaker Mahinda Yapa Abeywardena.
According to a parliamentary statement, MPs highlighted the importance of keeping Parliament informed about the Central Bank’s role and the need for transparent and accountable discussions on the current financial situation.
The meeting was held in compliance with Section 80 (2) (a) of the Central Bank of Sri Lanka Act, No. 16 of 2023, which mandates Parliament or a committee to review the Central Bank’s duties every four months.
During the meeting, CBSL Governor Dr. Nandalal Weerasinghe reported that inflation in Sri Lanka has been reduced to 5%, and the policy interest rate has been lowered. He noted that the rupee has been strengthened through stable exchange rates and reserve management.
Dr. Weerasinghe discussed the challenges of stabilizing the financial system during the economic crisis, emphasizing that the banking system was preserved from collapse. He also highlighted the benefits of the new Central Bank Act and recently introduced regulations for the banking sector.
The Governor elaborated on technical measures implemented to stabilize the financial system, including the establishment of a financial system monitoring committee as mandated by the new Central Bank Act. This committee oversees the stability of the entire financial system, including the banking, non-banking financial sectors, stock market, and insurance sector.
Furthermore, Dr. Weerasinghe addressed concerns raised by MPs about the current financial situation and related issues.
The meeting was attended by Members of Parliament, CBSL Governor Dr. Nandalal Weerasinghe, members of the Governing Board and the Monetary Policy Board, high-ranking CBSL officials including Deputy Governors, the Secretary General of Parliament, and other parliamentary officials.
