Press briefing of Cabinet Decision taken on 2019-03-19

Amendments to the Monetary Law Act, No. 58 of 1949

- The Cabinet of Ministers has granted its approval previously to draft legislative reforms to update the law relating to Central Banking so as to comply with the developed international best practices. Accordingly, proposed amendments to be made to the Monetary Law Act No.58 of 1949 which is in force at present for the functions of the Central Bank have been taken up for discussion with the Monetary Board and all relevant stake holders. This includes amendments for introducing new flexible inflation targeting the monetary policy framework, enhancing the governance standards in management structure of the Central Bank of Sri Lanka, introducing several disclosure requirements and recognizing the Central Bank of Sri Lanka as the macro prudential authority of the country. As such, the proposal made by Hon. Mangala Samaraweera, the Minister of Finance to repeal and replace the Monetary Law Act No. 58 of 1949 with the new law, was approved by the Cabinet.