Governor welcomes greater powers for CBSL

 

The government has announced its intention to restructure the Central Bank to give greater powers to the Central Bank to regulate the financial system, Central Bank Governor, Dr. Indrajit Coomaraswamy said addressing media in Colombo on Tuesday.

The Governor said they very much welcomed a re-structuring process which would upgrade processes and result in the reform of the Monetary Law and the Banking Acts to give greater powers to the Central Bank to regulate the financial system.“We are confident that such a move will be instrumental in enhancing the credibility of the Central Bank while preserving the independence it needs to perform its role effectively,” he said.

The Governor further said the stability of the economy is broadly on track. However there will be significant downsides from the global economy which the country should be aware of and respond proactively, the Governor said in Colombo on Tuesday.

“As a facilitator we need to support the new road model of the government which focuses on the central role of the private sector,” he said.

The Governor said they will be concentrating in improving the investment climate.The initial impetus to harness the country’s considerable potential must come from the domestic private sector particularly in the next year or two.The government has drawn its plan for a megalopolis development project and the development of Hambantota, Trincomalee and Kandy and various regional development programs which will all open up major investment opportunities for both domestic and foreign investors. The overall development thrust is on track, the governor said.

“Having a strategic plan is vital for the Central Bank. It is good for economic agents to know what the Central Bank’s plans and programmes are.

“There were significant downsides but it is too early to say how severe the impact will be. But the fact that the economy is stabilising we hope will result in greater investment activities both domestic and foreign.”


There are 2 Comments

I wish the government remove all exchange controls where our citizens could venture out to other countries and do business, would give our country much confidence and respect. Learn from countries like Singapore, Malaysia and South Korea.

I hope the CBSL will have some control on the exchange rates used by the local banks which is varied between banks and has become a discouraging factor in foreign investments. The CBSL publishes daily Selling and Buying rates but this has no bearing on the rates applied by the banks.

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