Departments

For the smooth functioning of the CBSL, the departments of the Bank are grouped into four key business areas, namely -Economic Policy Advisory Clustor, Financial Sector Regulation & Supervision Cluster, Capacity Building & Support Cluster and Risk Management & Compliance Cluster. The departments are headed by a Director (or equivalent), reporting to the Governor or a Deputy Governor through an Assistant Governor, while the Internal Audit Department reports directly to the Governor and the Monetary Board.

Economic Policy Advisory Cluster

Economic Research Department

    • Provide timely policy advise and recommendations to the Monetary Board and the senior management on monetary policy and other important economic policies with comprehensive monetary and economic analyses and assessment of risks arising from real, external and fiscal sector developments along with a comprehensive analysis of global developments.
    • Identify external vulnerabilities and shocks to the exchange rate and the Balance of Payments (BOP) and make timely policy recommendations to ensure viability and stability of the external sector. Monitor market developments to identify any pressure on the exchange rate and international reserves, and recommend appropriate policy measures to mitigate such pressure.
    • Identify any threat to domestic monetary stability arising from abnormal movements in money supply or price level and provide timely recommendations to maintain monetary stability. Closely monitor inflation, monetary and interest rate developments to recommend proactive policies to maintain price and economic stability.
    • Prepare statutory publications, other publications and policy statements with the assistance of other departments, including Annual Report, Recent Economic Developments and Road Map- Monetary and Financial Sector Policies.
    • Provide proactive policy advice and observations to the government, government agencies and other stakeholders on economic and fiscal sector related matters. This includes the submission of a confidential report (referred to as the September 15 Report), to the Hon. Minister of Finance, as stipulated in the Monetary Law Act and other confidential statutory reports.
    • Collect, compile and analyse data, including compilation of model based medium term macroeconomic projections, and conduct policy research for the guidance of the Monetary Board in formulating, implementing, and executing policies and disseminate information on economic developments to the public.
    • Compile and publish Monetary Statistics according to the Monetary and Financial Statistics Manual of the IMF.
    • Compile and publish interest rate statistics.
    • Compile and publish Balance of Payments (BOP), International Investment Position (IIP), external sector statistics and external debt statistics according to the Balance of Payment Manual (BPM6) of the IMF and coordinating data dissemination for Special Data Dissemination Standard [SDDS].
    • Compile and publish Merchandise Trade Statistics according to the internationally accepted data reporting standards.
    • Compile and publish fiscal sector statistics according to the Government Finance Statistics Manual of the IMF.
    • Collect, compile and analyse data related to international energy prices, agriculture, industry, and economic and social infrastructure sectors and conduct policy analysis/ research related to these sectors.
    • Function as the focal point of contact for multilateral agencies such as the IMF, SEACEN, SAARCFINANCE and facilitate government coordination with multilateral development agencies such as the World Bank and ADB. Also, maintain close contacts and provide macroeconomic updates to sovereign rating agencies and international investors.
    • Promote a research culture through research and knowledge sharing within and outside the Central Bank by conducting an annual international research conference, publishing the Central Bank’s flagship journal, the Staff Studies, and through collaboration with local and international research and academic establishments.
    • Provide resource persons for various seminars, conferences, workshops etc. within and outside the Central Bank.
    • Represent the Central Bank in numerous committees and boards of external institutions, which require the benefit of macroeconomic analysis.

Statistics Department

    • Collecting data through surveys and other secondary data sources.
    • Compiling indices and regional statistics, and submit those for policy formulation.
    • Forecasting short term inflation and GDP to assist in monetary policy decision making process.
    • Disseminating data and statistics to the general public through statistical publications and data library.
    • Engaging in preparation of statutory reports.
    • Publishing economic indicators/indices on daily, weekly, monthly, quarterly, semi-annually and annually basis.

Macroprudential Surveillance Department

    • Development of a database of key variables which could impact financial stability, in coordination with other departments in the CBSL and from external sources.
    • Development of a time series of a core set of financial indicators.
    • Conduct of systemic stress tests to assess the resilience of financial institutions.
    • Development of models for assessing financial stability including assessment of interconnectedness and build-up of asset price bubbles.
    • Submission of financial sector risk assessment reports to the Monetary Policy Committee and the Financial System Stability Committee.
    • Provide secretarial services for Financial System Stability Committee (FSSC) and Financial System Stability Consultative Committee (FSSCC).
    • Submission of quarterly financial stability assessment reports to the Monetary Board.
    • Preparation and publication of the Financial System Stability Review, on an annual basis.
    • Coordinating work connected with financial sector reforms in consultation with relevant   departments.
    • Contribute to statutory and other reports, such as the CBSL Annual Report, September 15th Report and Recent Economic Developments.

International Operations Department

    • Manage the reserves portfolio inline with the objectives of reserves management.
    • Conduct performance monitoring of reserve management, counterparty correspondence / KYC compliance whilst ensuring smooth functioningn of Treasury Management System (TMS), Performance Analysis Tool (PAT) system and support activities of reserves management.
    • Build - up international reserves through non-borrowed sources.

Domestic Operations Department

    • Implementing monetary policy by conducting Monetary Operations:
      • Conducting active Open Market Operations (OMOs),
      • Regulating statutory reserves of Licensed Commercial Banks (LCBs)
      • Conducting liquidity operations as and when required to suit market conditions
    • Acting as the banker to commercial banks, acting as the banker and the official depository of the government, government agencies and other institutions.
    • Providing temporary advances (Provisional Advances) to the government.
    • Maintaining settlement accounts for participants of the Real Time Gross Settlement System (RTGS)
    • Providing intraday liquidity to the RTGS participants
    • Regulating Authorised Money Brokers

Information Technology Department

    • Improve and maintain ICT infrastructure.
    • Proactive involvement in major software application developments with integrated project management concept.
    • Assess and Prevent cyber-attacks and IT related security breaches.

Department of Foreign Exchange

    • Conduct awareness programmes and capacity building.
    • Grant permission to engage in money changing activities.
    • Introduce new foreign exchange reporting & monitoring systems to Authorized Dealers (ADs) and Restricted Dealers (RDs) to facilitate reporting requirement.
    • Conduct on-site and off-site examinations.
    • Take action on no-compliance and legal proceedings.

Currency Department

Ensure that the legal tender in Sri Lanka is available in adequate quantities and required quality to meet the public demand while preventing any counterfeiting.

In view of the above, following key functions are carried out by the currency department;

    • Issue currency notes and coins to meet the public demand.
    • Estimate future currency notes and coins requirement and carry out timely procurements.
    • Accept currency deposits from Licensed Commercial Banks (LCBs).
    • Maintain a public counter to exchange damaged currency notes.
    • Process currency deposited by LCBs and withdraw currency notes and coins which are not suitable for further circulation.
    • Assist law enforcement authorities to negate and prevent any attempts on counterfeiting legal tender.
    • Conduct public awareness programs to enhance public knowledge on security features of currency notes and proper handling of currency notes and coins.
    • Improve the quality of currency notes by introducing new security features as and when required.
    • Issue commemorative notes / coins to mark a special event or a person.

Communications Department

    • Strengthen communication via print and electronic means to meet expectations of stakeholders and monitor reporting/ reviews.
    • Adhere to National Language policy in Communication.
    • Serve the general public effectively by providing information under the “Right To Information Act (RTI)” and “Tell to President Grievance Handling System”.
    • Enhance employees’ writing skills, improve the quality of the CBSL publications and create public awareness on CBSL policy outcomes, functions, programmes on Regional Development and other related matters through publications and represent the CBSL in national level exhibitions to create awareness and sell/distribute CBSL publications.
    • Design and page setting work related to publications, leaflets, posters, banners, cover pages, and brochures on request of departments of CBSL.
    • Coordinate and conduct public awareness programmes, seminars and other educational programmes for school and university students and professionals on Economics, Banking and Finance and other activities related to the CBSL.
    • Ensure providing efficient printing/ publishing of statutory reports and departmental requirements.
    • Conduct Open Day programme with assistance of Regional Offices to enable stakeholders outside Colombo, (public, financial institutions, government sector etc.) to access services provided by CBSL and improve reputation of the Bank.
    • Organize the TV Quiz programme - Econ-Icon Season IV.
    • Monitor media reports regularly and submit CBSL related news to the management and disseminate Press Releases to all staff.
    • Cover important events through Photography and videography.
    • Raise human capital and capacity building of staff of CBSL as well as stakeholders and bridge their knowledge needs.
    • Identify knowledge requirements of the CBSL and its stake holders and acquisition.
    • Process knowledge assets and distribution.

Financial Sector Regulation & Supervision Cluster

Bank Supervision Department

    • Develop a new methodology for on-site examinations to strengthen the risk based supervision.
    • Strengthen the continuous supervision function and the FinNet system.
    • Review and amend the relevant Acts and regulations in line with current market developments and international best practices.
    • Comply with international standards and best practices.
    • Promote market driven Consolidation of FIs.
    • Promote crisis preparedness and find new strategic partners.
    • Formulate a national financial inclusion strategy.
    • Contribute to MSD to strengthen the systematic stabiliy.
    • Strengthen communication with banks, Auditors and other regulatory agencies.
    • Provide training and development to staff and assist capacity building in the financial sector.

Supervision of Non-Bank Financial Institutions

    • Strengthen the supervisory process of NBFIs, Licensed Microfinance Institutions, Primary Dealers.
    • Review and amend the relevant Acts and streamline the existing regulatory framework of NBFIs with holistic view, issuing new regulations in line with current market developments.
    • Promote consolidation of NBFIs and Strengthen the business operations of NBFIs.
    • Develop a policy framework for Prompt Corrective Action of NBFIs.
    • Curtail the unauthorized finance business and leasing business.
    • Facilitate the financial inclusion strategy and financial customer protection framework.
    • Strengthen the communication with NBFIs, auditors and other regulatory agencies.
    • Enhance competencies of the staff of SNBFI and NBFI sector.

Public Debt Department

    • Enhance the effectiveness of Primary auction participation for Government Securities.
    • Broaden & diversify foreign investor base in Government securities.
    • Enhance the Safety of investors in Government Securities.
    • Service debt obligations.
    • Ensure the transparency in public debt management.

Resolution & Enforcement Department

    • Initiate resolution of identified distressed financial institutions.
    • Develop new systems and procedures to identify, assess and monitor financial institutions to evaluate the necessity of intervention.
    • Develop new legal frameworks or amend existing laws for effective and efficient resolution and enforcement.
    • Identify and make enforcement over unauthorized financial institutions and/or prohibited schemes.
    • Maintain, administer and execute of the Sri Lanka Deposit Insurance and Liquidity Support Scheme.

Security Services Department

    • Strengthen perimeter security of the Head Office.
    • Strengthen Security for Cash in Transit Operations.
    • Conduct surveillance and security checks within CBSL premises.
    • Manage Fire Prevention system to mitigate the risk of Fire at CBSL HO, ROs, CBS and Holiday homes.

Finance Department

    • Prepare monthly and annual financial statements of the CBSL in compliance with MLA and IFRS.
    • Prepare the annual budget of the CBSL linking the action plans of the respective departments under the strategic plans.
    • Make payments to external suppliers of the CBSL and internal parties including the CBSL Staff within budgetary provisions.
    • Repayment of foreign loans and disbursement of foreign funds timely and accurately.
    • Maintain the system of staff welfare loan recoveries in timely manner.
    • Make investments and settlements of internal investment funds of the CBSL in a prudent manner subject to acceptable risk norms and as per the approved Investment Policy Statement and Investment Guidelines applicable for the Funds.
    • Prepare annual financial statements of superannuation funds, which are maintained separately from the CBSL Balance Sheet, in compliance with the Sri Lanka Financial Reporting Standards (SLFRS) and international best practices.
    • Procurement/disposal of goods and services to/of the Bank in most economical and beneficial way to the Bank.
    • Conduct physical verification of fixed assets of the Bank and updating the Fixed Assets Register and enhance the effective internal controls on financial reporting.

Payments & Settlements Department

    • Ensure smooth operations of Payment Systems with timely availability of the system for participating institutions for effecting payments and settlements on each business day.
    • Facilitate interface software upgrading on time to accommodate periodic changes arising from operational and policy decisions and provide training to operational staff on related changes.
    • Conduct BCP activity on payment systems, operations of LankaSettle participants and service providers.
    • Settle all Forex, money market, derivatives, metal, third currency FX and fixed income securities transactions accurately on time, monitor the bond maturity receipts and coupon income of fixed income securities related to foreign reserve management of IOD and ACU transactions carried out by the ACU Division of PSD and Settle all ACU transactions accurately on time.
    • Ensure uninterrupted communication through incoming and outgoing SWIFT messages to effect payments smoothly.
    • Facilitate the developments of payment and settlement infrastructure, License/register eligible service providers to act as operators of retail payment systems and supervise / oversee the compliance of the service providers with the Regulations and Guidelines on electronic payment systems.
    • Collect, compile and analyze data on PSS, Enhance the awareness and facilitate the expansion of electronic retail payment systems.
    • Participate at the meetings conducted by the SAARC Payment Council (SPC), SEACEN, ACU Board of Directors meetings and Technical Committee meetings etc.

Financial Consumer Relations Department

 

Capacity Building & Support Cluster

Human Resources Department

    • Recruit necessary staff at regular intervals or at appropriate times depending on the requirements of the Bank with the approval of the MB.
    • Conduct mentoring sessions/orientation programs for relevant categories of employees.
    • Outsource specific services as per the requirements of the Bank.
    • Carry out Performance Evaluation for employees.
    • Implement grade and class promotion schemes.
    • Implement the annual job rotation scheme for employees.
    • Maintain continuous dialogue between the Management and Trade Unions.
    • Facilitate and coordinate the provision of internship training to be given for undergraduates.
    • Coordinate the provision of training to be given for students of ICASL.
    • Attend to other work and Administrative matters of the Department.
    • Prepare the Training and Development Plan including the critical competency gaps of the employees of the Bank.
    • Facilitate the staff for postgraduate studies local and foreign.
    • Facilitate the staff for short-term foreign and local training opportunities.
    • Organize Training Committee meetings to take decisions on the matters relating to Training & Development.
    • Organize training sub-committees to facilitate the officers to fulfill the post training requirements.
    • Facilitate the staff to acquire professional qualifications/memberships from reputed local and international institutes.

Regional Development Department

    • Ensure access to finance for the Micro, Small and Medium Scale Enterprises (MSMEs) through the credit support schemes implemented by the Central Bank of Sri Lanka (CBSL) with the assistance of Government of Sri Lanka (GOSL) and other Government Institutions/Agencies and/or Foreign Agencies.
    • Fill the knowledge gap pertaining to financial literacy of general public including the new and existing entrepreneurs engaged in economic activities to enable them to make informed decisions on matters relating to banking, financial and technical aspects of their businesses.
    • Develop and implement a National Financial Inclusion Strategy for Sri Lanka.
    • Encourage MSMEs including individuals and self-employed in all economic sectors for production oriented economic activities by ensuring availability of affordable financial services.
    • Deliver the services offered by the CBSL to the regional level through Regional Offices (ROs) of CBSL.
    • Strengthen the administration, supervision and monitoring of activities of ROs.
    • Organize/conduct awareness programmes on the role of CBSL, monetary policy, fiscal policy and other relevant topics to the general public.
    • Support/assist in transforming villages as green villages using modern technology and good agriculture practices for sustainable development.
    • Monitor MSMEs facilitated under the credit support schemes implemented by the CBSL and conduct field visits to identify regional issues and new business opportunities.

Centre for Banking Studies

    • Offer a wide range of capacity building programmes including seminars, and workshops in the areas of central banking, banking and finance, economics, management, languages and information technology for the officers of the central bank and the other financial institutions in the country with local and international resource personnel.
    • Offer international trainnig programmes in collaboration with international organizations such as South East Asian Central Banks (SEACEN) Research and Training Centre, Asian Development Bank (ADB), International Monetary Fund (IMF), foreign central banks and other international training institutions.
    • Formulate the Faulty Advisory Committee (FAC) which would act as an advisory body to the CBS relevant to the curriculum development activities on conducting training programme.
    • Present its programme calendar on annual basis which is designed in par with present and future training needs of the professionals within the financial sector.
    • Offer a wide range of special programmes considering the specific training needs and compliance requirements of the industry in order to bridge the skills and knowledge gap in the key areas of the financial services industry.
    • Conduct a structured high-level seminar targeting senior officials from CBSL, relevant ministries, university lecturers to be conducted by an international expertise.
    • Revisit and design training programmes, seminars and workshops in par with new technological developments to empower professionals in the financial sector.
    • Conduct training need surveys and discussions with professionals in different fields particularly, within the banking and financial industry.
    • Conduct numerous seminars, workshops for school students, teachers, university students & academia at regional level within the country in collaboration with several departments of CBSL.
    • Telecast series of educational programmes in Sinhala and Tamil Languages mainly targeting the Advanced Level students who are learning Economics.
    • Conduct Public Awareness programmes regularly on contemporary economic matters with reputed local and foreign experts to enhance the financial literacy of the general public.
    • Provide residential facilities (CBS Hostel) for CBS programme participants, participants of residential programmes, officers of government and financial institutions on official request.
    • Provide logistics to government and financial organizations to conduct official events

Staff Services Management Department

    • Approve and grant of housing loans.
    • Approve and grant Provident Fund and Staff Benefit Scheme loans.
    • Enable convenient access to accurate information on the granting loan, recovery of loans granted under SH(M)LS to provide timely and quality service to employees and pensioners.
    • Reimburse medical expenses of employees, pensioners at their request and provided a prompt service in terms of information dissemination and medical bill reimbursements.
    • Update the MBS database with new enrolments.
    • Provide efficient Medical Centre services to the bank staff on duty.
    • Provide tasty and nourishing breakfast, lunch and meet special departmental requests for food and beverages.
    • Improve and upgrade the welfare services to provide quick services to employees.
    • Extend facilities under Death Donation Scheme, Death Relief Fund, Distress Relief Fund, Disaster Relief Fund and Investment / supervision of Distress Relief Fund, Death Relief Fund and Death Donation Scheme.
    • Implement Group Personal Insurance Policy to cover against accidents to all employees  for 24 hours.
    • Carry out control measures to minimize financial, operational & other risks (improve efficiency) in departmental activities.
    • Budgetary preparation, Goal settings, Performance evaluation, Progress reports, Strategic planning and other Administration Activities.

Employees' Provident Fund

    • Enhance the institutional capacity to ensure effective and efficient fund management.
    • Identify new investment opportunities and maintain appropriate asset allocation to generate highest level of risk adjusted return.
    • Review and rebalance the portfolio to be in line with target asset allocation and trade in the secondary market in fixed income and equity considering the behavior of the yield curve, market liquidity, market sentiments and other macroeconomic factors.
    • Improve the framework for managing financial risks.
    • Improve web based ICT technologies to link employers, employees and other stakeholders.
    • Enhance the quality of existing database and expedite the process of upgrading of a Member Centric Database (MCD) Linked using the NIC number for both EPF Department and Department of Labour (DL).
    • Improve awareness among stakeholders on EPF operations to improve the level of service delivery and execute a comprehensive programme to maintain complete, accurate and updated member database.
    • Issue half yearly member account statements and issue member balance certificates for housing loan.
    • Submit Annual Accounts to the Monetary Board, MOL, and MOF and publish the accounts in Newspapers.
    • Verify the accuracy of EPF collections and refunds and other transactions.
    • Settle defaulted housing loan installments to the lending institutions and respond to member inquiries in expeditious manner.
    • Submit information to the Auditor General’s Department to conduct the External Audit of EPF and compilation of audit responses.
    • Submit and disseminate data/information to stakeholders.
    • Conduct internal audit meetings with Internal Auditor and conduct progress review meetings with Labour Department.
    • Expedite the process of upgrading of a Member Centric Database (MCD) Linked using the NIC number for both EPF Department and Department of Labour (DL).
    • Procure all stationery items,computer equipment, office equipment & furniture and fittings as
      required by the department timely and procure outsourced services to enable the department to enhance the efficiency and support to smooth functioning of the Department.
    • Coordinate with other departments of the CBSL and institutions to achieve the goals of EPF Department.

Secretariat Department

    • Prepare the Annual Procurement Plan and ensure procurement of goods and services according to the plan.
    • Maintain the stationery store.
    • Assist procurement related matters of other departments.
    • Carry out activities related to the Board of Survey and coordinate disposal of unnecessary obsolete documents, stationery and other noncapital items of the Bank.
    • Obtain a comprehensive Insurance cover for CBSL assets at a competitive price after assessing individual risks of these assets.
    • Assist Bank employees who are going abroad on official and/or private visits.
    • Handle leave and other general administrative matters of the Bank.
    • Facilitate the training and skills development of Bank employees.
    • Carry out mailroom activities and conduct commemorative events.
    • Pay superannuation benefits and handle other matters related to superannuation schemes.

Facilities Management Department

    • Comprehensive Refurbishment and Retrofit of CBSL Head Office Building to enhance the structural soundness, service quality and overall efficiency.
    • Renovate/Reconstruct CBSL buildings.
    • Install/upgrade Generators, Elevators and other electric equipment.
    • Attend event management and provide communication services.
    • Manage service agreements while enhancing the quality.
    • Provide critical services (electricity, lighting, air conditioning and drinking water) under regular inspection and supervision.
    • Facilitate procurement activities as required.
    • Provide transport services safely and punctually with CBSL and outsourced vehicle providers to meet day to day demand.

Risk Management & Compliance Cluster

Internal Audit Department

    • Follow the Global Standards for the conduct of audit.
    • Prepare Risk-based Annual Audit Plan (AAP), based on strategic audit plan.
    • Perform the process audit assignments, special audit assignments, spot audit and followup the level of implementation of audit recommendations.
    • Report the progress (to the Monetary Board and Monetary Board Advisory Audit Committee (AAC)).
    • Facilitate to enhance the awareness of stakeholders on Risk-based Assurance Services, Risk Management and Controls.
    • Facilitate AAC activities.
    • Half-yearly reports to the Auditor General.
    • Conduct of Quality Assessment Review (QAR).

Policy Review & Monitoring Department

    • Conduct the Strategic Planning Retreat to formulate strategic priorities and departmental action plans to achieve the objectives of the Bank.
    • Conduct periodic reviews and Task Force meetings to monitor and assess the progress made in achieving strategic priorities and implementing departmental action plans.
    • Report the progress made and any observations and recommendations to the Corporate Management Committee and to the Monetary Board in order to ensure timely and effective achievement of the objectives of the Bank.
    • Provide an independent assessment on the outcome and impact of selected policies related to the strategic priorities.

Legal & Compliance Department

    • Advise the management on legal issues on policy matters and strategic and operational targets of the CBSL.
    • Develop new laws and, review existing laws and legal instruments.

Risk Management Department

Monitoring Financial Risk
    • Developing policies and guidelines such as Strategic Assets Allocation (SAA), Investment Policy Statement (IPS) and Investment Guidelines (IG) for International Reserves (IR), Internal Investment Funds (IIF) and Employees’ Provident Fund (EPF).
    • Independently monitoring credit and market risks pertaining to the fund management activities of IR, IIF & EPF.
    • Monitoring the adherence to the relevant policies and guidelines relating to the IR, IIF & EPF.
    • Reporting credit and market risks to the respective Investment Oversight Committees (IOCs) on monthly basis, Board Risk Oversight Committee (BROC) and Monetary Board (MB) on quarterly basis.

Monitoring Non-Financial Risk

    • Implementing the risk assessment framework across all departments of the CBSL and facilitating Operational Risk Assessment of the departments.
    • Managing the Incident Reporting System of the CBSL.
    • Escalating operational risks and incidents reported by departments to Non-Financial Risk Management Committee (NFRMC) and the Board Risk Oversight Committee (BROC) as may be relevant.
    • Updating/ Reviewing Risk Management Policy Statement, Operational Risk Management Guidelines, Guidelines for Incident Reporting System.
    • Conducting Survey to identify key operational risks impacting the CBSL and review the Operational Risk Taxonomy.

Financial Intelligence Unit

    • Receiving Cash Transactions Reports (CTR), Electronic Fund Transfers (EFT) and Suspicious Transaction Reports (STR) from all reporting institutions.
    • Analysing the data collected to identify financial trails to support prosecution. The analysis of data is mainly in three forms; tactical, operational and strategic.
    • Dissemination of information locally and internationally since money laundering and terrorist financing are often cross-border activities.
    • Issuing rules to the financial and other reporting sectors on customer identification and record keeping.
    • Conducting examinations to ensure compliance of the financial and other reporting sectors on AML/ CFT rules issued by the FIU.
    • Conducting programmes to enhance awareness among all stakeholders regarding AML/CFT measures.
    • Conducting research/link analysis on the trends of money laundering and terrorist financing and strategies for the development of efficient preventive measures.