(LANKAPUVATH | COLOMBO) –Central Bank of Sri Lanka Bill was passed in Parliament with a majority and with amendments today (July 20).
The Second Reading debate of the Bill was held today (20) and MP Vijitha Herath called for a division for the Second Reading of the Bill. Accordingly, the Second Reading of the Bill was passed by a majority of 42 votes with 66 voting in favor and 24 voting against it.
Subsequently, amendments were added to the Bill during the committee stage and the Third Reading of the Bill was passed without a division.
The Central Bank of Sri Lanka Bill was presented in parliament on 07 Mar 2023 for ancillary matters including the establishment of the Central Bank of Sri Lanka in order to provide financial and administrative independence, and the removal of the Monetary Law Act currently established by the Central Bank.
According to the new Bill, the autonomy of the Central Bank shall be respected at all times and no person or entity shall cause any influence on the Governor of the Central Bank or other members of the Governing Board and Monetary Policy Board or employees of the Central Bank in the exercise, performance and discharge of their powers, duties and functions under this Act or interfere with the activities of the Central Bank.
Moreover, the Bill entails that the primary object of the Central Bank shall be to achieve and maintain domestic price stability.
In addition, a ‘Board of Governors’ will be established to supervise the administration and management of the affairs of the Central Bank and to decide the general policies of the Central Bank other than monetary policy. Its chairman shall be the Governor of the Central Bank and six members with expertise will be appointed to it.