Central Bank   
             


            To accommodate dynamic economic and financial system developments upon gaining independence in 1948, the post-independence Government of Ceylon (as Sri Lanka was then known) established the Central Bank of Ceylon to maintain an active monitary policy regime and a dynamic financial sector to support and promote economic growth.

        The Central Bank of Sri Lanka (CBSL) is the monetory authority of Sri Lanka, and the apex institution in the country's financial sector. Established in 1950 under the Monetary Law Act No.58 of 1949 (MLA), it is a government owned semi-autonomous body, and following the amendments to the MLA in December 2002, is governed by a five-member Monetary Board, comprising the Governor as chairman, the Secretary to the Ministry of Finance and Planning, and three members appointed by the President of Sri Lanka, on the recommendation of the Minister of Finance, with the concurrence of the Constitutional Council.



Vision


“A credible and dynamic central bank contributing to the prosperity of Sri Lanka”


Mission


“Maintaining economic and price stability and financial system stability to support sustainable growth through policy stimulus, advice, commitment and excellence”

Objective


The Central Bank has two core objectives;

“Maintaining economic and price stability”

            “Maintaining financial system stability”

Values

·         Commitment to inspirational leadership
Providing strategic leadership to the financial sector.
·         Transparency in what we do
Being ready to explain the rationale behind our actions.
·         Accountability to our key stakeholders - the public, government, financial institutions and employees
Taking responsibility for our policy advice and actions.
·         Integrity - trust, dependability, honesty
Matching words with deeds by discharging functions ethically in the best interests of our   stakeholders
·         Commitment to professional competence
Dedication, quality and excellence in all we do.

Functions of Central Bank of Sri Lanka

Core functions

·         Conduct of monetary policy
·         Conduct of Exchange Rate Policy
·         Management of the Official International Reserves
·         Oversight of the Financial System
·         Licensing, Regulating and Supervising of Banks and Selected Non-Bank Financial Institutions
·         Provision of Settlement Facilities and the Regulation of the Payment System
·         Issue and Distribution of the National Currency
·         Compilation, Dissemination and Analysis of Economic Data and Statistics
·         Banker to the Government and its agencies, and provision of current account facilities to LCBs and non-commercial bank Primary Dealers for Government Securities

Agency Function

·         Management of the Public Debt
·         Foreign Exchange Management
·         Fund Management and Custodian of the Employees’ Provident Fund
·         Facilitating Financial Inclusion
·         Financial Intelligence services to prevent, detect, investigate and prosecute Money         Laundering and Terrorist Financing

Role of the Central Bank in Maintaining Financial System 

·         Promoting and maintaining public confidence in money.
·         Promoting safety and soundness of individual financial institutions.
·         Ensuring public confidence in financial system, in collaboration with other financial regulators, through minimization of risks to the financial system.
·         Acting as lender of last resort.
·         Resolving failing financial institutions in a manner that minimizes possible adverse implications of such an event on the overall financial system/economy.
·         Regulating and supervising financial market infrastructure.

Entities Falling Under the Regulatory Purview of the Central Bank of Sri Lanka

·         Licensed banks
·         Licensed finance companies
·         Registered leasing establishments
·         Licensed micro-finance companies
·         Primary dealers in government securities
·         Authorized Dealers in Foreign Exchange
·         Authorized Money Changers
·         Authorized Money Brokers   










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