CENTRAL BANK OF SRI LANKA (CBSL)

The Central Bank of Sri Lanka (CBSL) is the apex institution in the financial sector in Sri Lanka. It was established in 1950 under the Monetary Law Act No. 58 of 1949 (MLA) as a semi-autonomous body and is governed by a five member Monetary Board.In the 1st post I have posted about the History of the Central Bank of the Sri Lanka.( Beginning of the Banking of Sri Lanka )
The CBSL seeks to achieve and maintain two core objectives to maintain a healthy and stable economic and financial system while maximising resource utilisation effectively. These objectives are:

 1. The maintaining of economics and price stability
2. The maintaining of financial system Stability
  
The MLA has also granted the CBSL sole authority to issue currency notes and coins to the public. Therefore, the Bank is responsible for currency issuance and management.
The CBSL is advisor on economic affairs and Banker to the Government of Sri Lanka (GoSL). As agent to GOSL the CBSL is tasked with managing the Employees’ Provident Fund, managing the country’s public debt, providing exchange control services and administration of foreign and government funded credit schemes to enhance access to finance for regional development.
Founder - John Exter (1950 )
The Governor of the CBSL functions as its Chief Executive Officer while the senior management consists of the Senior Deputy Governor, Deputy Governors, Assistant Governors and Heads of Departments in addition to the Governor. The Bank consists of 30 Departments headed by a Director or its equivalent and 6 Regional Offices headed by a Regional Manager. Apart from the Internal Audit Department and Financial Intelligence Unit which report directly to the Governor, all other Departments report to the Governor or Deputy Governor through an Assistant Governor.

Vision

A credible and dynamic central bank contributing to the prosperity of Sri Lanka.”


Mission

"Maintaining economic and price stability and financial system stability to support sustainable growth through policy stimulus, advice, commitment and excellence.”


                                    Functions of the Central Bank of Sri Lanka

Mainly CBSL has two main functions. They are Core functions & Agency functions.
  • Core Functions

(a) Conduct of Monetary Policy

(b) Conduct of Exchange Rate Policy

(c) Management of the Official International Reserves

(d) Oversight of the Financial System

(e) Licensing, Regulating and Supervising of Banks and Selected Non-Bank Financial Institutions

(f) Provision of Settlement Facilities and the Regulation of the Payment System

(g) Issue and Distribution of the National Currency

(h) Compilation, Dissemination and Analysis of Economic Data and Statistics

(i) Banker to the Government and its agencies, and provision of current account facilities to LCBs and non-commercial bank Primary Dealers for Government Securities

  • Agency Functions

(a) Management of the Public Debt

(b) Foreign Exchange Management

(c) Fund Management and Custodian of the Employees’ Provident Fund

(d) Facilitating Financial Inclusion

(e) Financial Intelligence services to prevent, detect, investigate and prosecute Money Laundering and Terrorist Financing


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