Frequently Asked Questions (FAQs)

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What is the Central Bank of Sri Lanka (CBSL)?

The Central Bank of Sri Lanka (CBSL) is the apex financial institution in Sri Lanka. The CBSL Act No. 16 of 2023 (CBA) brought into law in September 2023, supersedes the Monetary Law Act (MLA) No. 58 of 1949 that established the CBSL In 1950 as a semi-autonomous body. Under the new act, the CBSL shall be autonomous and accountable. As a corporate body with legal personality, CBSL shall be responsible for the administration of the monetary, financial and payment systems of Sri Lanka. The Secretary to the Treasury is no longer a part of any of the Central Bank's decision-making bodies. 

What is the Governing Structure of CBSL?

The governing structure comprises two parallel decision-making bodies ; namely, the Governing Board (GB) and the Monetary Policy Board (MPB); both of which are headed by the Governor

GB – oversees the administration and management of the affairs of the CBSL and determines general policies of the CBSL other than the monetary policy

MPB – formulates monetary policy of the CBSL and implements a flexible exchange rate regime in line with the flexible inflation targeting framework in order to maintain domestic price stability

What is the composition of GB and MPB?

Governing Board

The GB of the Central Bank is charged with the responsibility of overseeing the administration and management of the affairs of the Central Bank and the determination of general policy of the Central Bank other than the monetary policy. The GB shall consist of the Governor of the Central Bank (who shall be the Chairperson of the GB), six members who shall have expertise in Economics, Banking, Finance, Accounting and Auditing, Law or Risk Management. The Secretary to the GB is an employee of the Central Bank who shall be nominated by the Governor of the Central Bank.

Monetary Policy Board

MPB of the Central Bank is charged with the formulation of monetary policy of the Central Bank and implementation of a flexible exchange rate regime in line with the flexible inflation targeting framework in order to achieve and maintain domestic price stability. The MPB shall regulate the supply, availability, and cost of money, taking into account the macroeconomic and financial condition of Sri Lanka. The MPB consists of the Governor of the Central Bank (who shall be the Chairperson of the MPB), members of the GB, two experts in Economics or Finance, Deputy Governor of the Central Bank in charge of price stability and the Deputy Governor of the Central Bank in charge of financial system stability. The Secretary to the MPB is an employee of the Central Bank is nominated by the Governor of the Central Bank.