Banking system of Sri Lanka

                                 CURRENCY IN SRI LANKA Sri Lanka is a country with a long history and a similarly long and rich economic history. A study of that history will doubtlessly prove fruitful not only for economists but for everyone in the society. Coins used through different time periods of a country play an important role when studying the history of that country. Although small in size, a coin has the ability of giving a wealth of information about the economic and cultural history of the country where it was used, through signs that remain on them. Sri Lanka’s currency-use can be divided into following periods.  Anuradhapura Era Polonnaruwa to Kotte Era Kandy Era Colonial Era Post-Independence Period since Establishment of the Ce...

The Bank's Beginning To accommodate dynamic economic and financial system developments upon gaining independence in 1948, the post-independence Government of Ceylon (as Sri Lanka was then known) established the Central Bank of Ceylon to maintain an active monetary policy regime and a dynamic financial sector to support and promote economic growth. Prior to the establishment of the Central Bank, the Currency Board System set up under the Paper Currency Ordinance No.32 of 1884 functioned as the country’s Monetary Authority, though very narrow in its capacity. This system was deemed inadequate for a developing country upon gaining political independence.    Technical expertise to establish a central bank was sought from the United States of America (USA) in July 1948, with Mr. John Exter, an American economist from the Federal Reserve of USA being appointed to carry out this task.  The Exter Report on the rationale and the legal framework for a...

Central bank of Sri Lanka The Central Bank of Sri Lanka ( CBSL )is the monetary authority of Sri Lanka and the apex institution in the country's financial sector. Established in 1950 under the Monetary Law Act No.58 of 1949 (MLA), it is a government owned semi-autonomous body, and following the amendments to the MLA in December 2002, is governed by a five-member Monetary Board, comprising the Governor as chairman, the Secretary to the Ministry of Finance and Planning, and three members appointed by the President of Sri Lanka, on the recommendation of the Minister of Finance, with the concurrence of the Constitutional Council. History of central bank The Central Bank of Sri Lanka was established in 1950, two years after independence. The founder governor of the Central Bank of Sri Lanka was Jhon Exter, while the minister of finance at the time was J.R. Jayawardene. Under the former name of Central Bank of Ceylon, it replaced the Currency Board that until then had been r...