As enacted

Contents

Central Bank of Sri Lanka Act 2023 · As enacted · Part IV · Inflation Target

28. Action to preserve price stability

Official English translation. The Sinhala text prevails. Open the official Sinhala text, official PDF on documents.gov.lk

(1)

Where the Monetary Policy Board anticipates economic disturbances that are likely to threaten the domestic price stability in Sri Lanka or there are abnormal movements in the price level that are actually endangering such domestic price stability, it shall be the duty of the

Monetary Policy Board –

(a)

to adopt such policies, and to cause such remedial measures to be taken, as are appropriate in the circumstances and authorized by this Act;

(b)

to submit to the Minister and, if it is not prejudicial to the public interest, publish, a detailed report which shall include, as a minimum, an analysis of –

(i)

the causes of the anticipated economic disturbances, or of the actual abnormal movements of the price level;

(ii)

the probable effects of such disturbances or movements on the level of production, employment, and income in Sri Lanka;

and

(iii)

the measures which the Monetary Policy

Board has already taken, and monetary, fiscal, or administrative measures that it proposes to take or recommends for adoption by the Government.

(2)

The Monetary Policy Board shall continue to submit further reports periodically so long as the circumstances which occasioned the submission of the first report constitute a threat to domestic price stability.

(3)

The Minister shall submit the reports referred to in this section to the Cabinet of Ministers to consider the same and take appropriate decisions to avert such an occurrence.

Part V

Monetary and Other Operations

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Part VI

Foreign Exchange Operations and International Reserves

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Part VII

Currency and Legal Tender

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Part VIII

Payment and Settlement Systems

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Part IX

Supervision and Resolution of Financial Institutions

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Part X

Macroprudential Authority

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Part XI

Financial System Oversight Committee

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Part XII

Information Exchange with Financial Sector Authorities

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Part XIII

Statistics and Information

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Part XIV

Relationship with the Parliament, the Government and the Public

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Part XV

Credit Operations

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Part XVI

Financial Provisions

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Part XVII

Internal and External Audits

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Part XVIII

General Provisions

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Part XIX

Repeals and Savings

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