Central Bank As Advisor To the Govt.: How And What It Should Advise?
Dr. W.A. Wijewardena
An important role played by a central bank of a country is to advise its government on economic and financial matters.
The expanded role of the Central Bank as government’s economic advisor
This has not been clearly laid down in the case of the Monetary Law Act or MLA under which the Central Bank of Sri Lanka or CBSL has been set up except some provisions relating to selective areas where CBSL’s advice to the government has been mandated. Under these selective areas, one important requirement is for CBSL to submit a special report to the Government, known as the September 15th Report because it is submitted on or before 15 September of every year, for use in the preparation in the budget by the Minister of Finance.
The statutory requirement is to cover in the report only the current monetary situation and the policy of the bank and how the government’s budgetary policy affect the bank’s ability to attain its monetary policy objectives. However, in practice, the bank has been submitting a very comprehensive report on all aspects of the economy including the international developments and their impact on the country’s economy. Apart from this, a healthy tradition has been established ever since the Central Bank was set up in 1950 for governments of all hues to consult the Central Bank on important economic and financial issues facing the country.
Consultation of the Central Bank even on hilarious matters Read More
UNP Colombo Mayor Backs Rajapaksa CHOGM; Flouts UNP Boycott Decision
November 18, 2013
The UNP Leadership Council is being urged to launch a disciplinary inquiry into the conduct of its Colombo Mayor, after the latter flouted a party decision last week.
Colombo Mayor A.J.M. Muzammil attended the CHOGM opening ceremony on Friday despite a decision by the UNP Leadership Council to boycott Commonwealth proceedings due to the recent attacks on its party headquarters by Government goons.
Dammika, Mahinda, Muzammil and Basil / File photo
Muzammil has feigned ignorance about the party decision, arrived at on Wednesday after a human rights festival at its Sirikotha headquarters came under attack by Government sponsored demonstrators.
However, earlier the Mayor told the media that inspite of the incident, he had participated in the opening ceremony “displaying the spirit of patriotic cooperation and to fulfill the duties that have traditionally been bestowed upon the city of Colombo’s first citizen.”
But party insiders say Muzammil, made the calculation that it was safer to flout his Party orders rather than risk the wrath of Defence and Urban Development Authority Ministry SecretaryGotabaya Rajapaksa. He is now seeking the UNP’s forgiveness for attendance.Read More
