Govt. seeking IMF advice to restructure CB

Published : 9:10 am  January 15, 2018 | No comments so far |  | 

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kjyuhjkBy Kelum Bandara  

The government has sought advice from the International Monetary Fund (IMF) to restructure the Central Bank in keeping with the global best practices, Deputy Minister Harsha de Silva said yesterday.  

 

With this in mind the government now has the option of either amending the Monetary Law Act or bring in an entirely new piece of legislation.   


Dr. de Silva told Daily Mirror the government had held a discussion with the IMF in this regard.   


The meeting took place in the backdrop of the Presidential Commission that investigated the controversial bond transaction, making several recommendations in relation to the Central Bank.  


The Deputy Minister said the COPE investigation on the questionable bond issue had been sent to the Attorney General (AG) while the Presidential Commission of Inquiry (PCoI) appointed by President Maithripala Sirisena had also concluded their sittings and that too had been sent to the AG. Now it is up to him, he said.   


He said the Central Bank Governor had also overseen certain reforms within his purview, but beyond that the restructuring of the Central Bank was in the hands of the Parliament. 


Revising the Monetary Law Act would enable the Central Bank to carry out its functions in the most appropriate manner. There is however a question with regards to the mandate of the Central Bank. The President is of the opinion that the Governor should be appointed by the Constitutional Council. Other areas that are a little grey is with regard to the autonomy of the Central Bank and its accountability,” he said.   

 

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