AMN
Four special petitions were filed in Sri Lanka’s Supreme Court yesterday, March 15 to strike the new Central Bank of Sri Lanka Bill as unconstitutional. The bill was submitted for parliamentary approval last week by the leader of the house and Minister Dr. Sushil Premajayantha.
The bill was presented to the Parliament in a bid to provide administrative and financial independence to the Central Bank. Meanwhile, the Central Bank Executive Officers yesterday lobbied all political parties, seeking independence for the monetary regulatory authority. The executive officers’ union expressed seven concerns in the new bill which may impede the independence of the central bank.
The new Bill seeks to prevent its Governor and members of its Governing Board and Monetary Policy Board from external influences. Under the provisions of the draft bill, the primary objectives of the Central Bank shall be to achieve and maintain domestic price stability. The Bill provides for the establishment of a Governing Board of the Central Bank consisting of the Governor as Chairperson and six members who shall be subject experts in addition to a Monetary Policy Board, which is charged with the formulation of monetary policy.