Government to introduce new act to control CBSL?

Government to introduce new act to control CBSL?

Written by Staff Writer

08 Sep, 2019 | 9:03 pm

Colombo (News 1st) Plans have been made to bring in a new act for the Central Bank and monetary law.
Deputy Governor of the Central Bank of Sri Lanka Dr. Nandalal Weerasinghe speaking to News 1st stated that according to the new act the Central bank will be barred from printing new notes to help the government to bridge the budget deficit, and that it has also been proposed to remove the secretary of the treasury from the Monetary Board.

Meanwhile, the economic investigative unit of the Opposition convened a media briefing in Colombo today (8 September).

MP of UPFA, Bandula Gunawardena highlighted that there are attempts to completely change the power of the Central Bank to issue currency notes and amend the 1949 Monetary Act. He further noted that it is not only the government but the Chairman of the committee on public accounts M.A. Sumanthiran is also making this attempt. “The fiscal policy will be abandoned. The Ministry of Finance will be chased out of the Central Bank”, he emphasized.

He mentioned that in the cabinet decision the president had clearly stated that these amendments to the Monetary Law must be done after the proposals are considered by a committee of experts. These amendments were to be done based on this committee report adding that it is exactly what they do not do. “Is Sumanthiran an economic expert?”, he continued. He added that everyone is aware of the history of the country and the Central Bank bond scam. “The Prime Minister gave direct advice to the Governor of the Central Bank to stop the hybrid system and issue the bonds on auctions alone”, he noted reasoning that it is according to this advice that the Governor of the Central Bank walked in and used his political powers to conduct this bond scam. He highlighted that in the backdrop when the Monetary Act is amended to a point where it is only implementing the fiscal policy, they get the opportunity to rob the provident funds.

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