There have been recent claims in the media that the Central Bank of Sri Lanka (CBSL) has "printed" Rs. 100 billion on 25 October 2024, through its Open Market Operations (OMOs). It is important to clarify that these claims are not accurate and are baseless. The liquidity (money) injected through OMOs is a routine central banking function aimed at managing adequate liquidity in the banking system for the purpose of stabilizing the short-term interest rates in the economy and ensuring price stability, and hence it should not be grossly misinterpreted as "money printing."
