A special meeting to appraise the Members of Parliament on the duties of the Central Bank of Sri Lanka (CBSL) was held in Parliament yesterday under the patronage of Speaker Mahinda Yapa Abeywardena.
According to a Parliament statement, the group of MPs had pointed out that it was very important to inform the Parliament regarding the role of the Central Bank.
The group of MPs had also emphasized the importance of briefing the Parliament on the current financial situation in a transparent and accountable manner and to hold such discussions.
The meeting was held as per the legal requirement that the Parliament or a Committee should inquire into the duties performed by the Central Bank once every four months under the provisions of Section 80 (2) (a) of the Central Bank of Sri Lanka Act, No. 16 of 2023, upon a request made by the Parliament.
At the meeting, CBSL Governor Dr. Nandalal Weerasinghe pointed out that the inflation in Sri Lanka has been brought down to 5% compared to the existing situation and the policy interest rate has been brought down. The Governor further mentioned that it was possible to strengthen the rupee by stabilizing the exchange rate through the strengthening of reserves.
Pointing out the issues related to stabilizing the country’s financial system, he stated that it is a point to note that the banking system of the country was prevented from collapsing, especially in the midst of the economic crisis. He also mentioned that the new Central Bank Act as well as the new laws introduced for the regulation of the banking system was beneficial.
Moreover, he revealed technical matters regarding the measures taken to stabilize the financial system in this country, including the appointment of a financial system monitoring committee by the new Central Bank Act, for the stability of the entire financial system including the banking system and the non-banking financial system as well as the stock market and the insurance sector was clarified.
Furthermore, Dr. Weerasinghe addressed concerns raised by the Members of Parliament regarding the current financial situation and related matters.
Members of Parliament, CBSL Governor Dr. Nandalal Weerasinghe, members of the Governing Board and the Monetary Policy Board, high officials of the Central Bank including Deputy Governors, the Secretary General of the Parliament, and a group of parliamentary officials were present at this meeting. (Newswire)