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.
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 economic 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.
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.