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Contents

Part X · Macroprudential Authority

63. Macroprudential objectives of the Central Bank

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

(1)

The Central Bank shall be the macroprudential authority in Sri Lanka.

(2)

The Central Bank shall develop and periodically update the overall approach to the use of macroprudential tools, and publish such approaches with a view to informing the public of the role of the Central Bank in macroprudential policy.

(3)

In order to achieve the financial stability, the Central

Bank shall pursue the following intermediate macroprudential objectives:-

(a)

to maintain the resilience of the financial system, in a manner that supports the provision of financial services even under adverse economic and financial conditions;

(b)

to contain risks from unsustainable increases in credit and leverage; and

(c)

to contain risks from interconnectedness within the financial system and control the risk of failure of individual systemically important institutions.

(4)

(a)

Without prejudice to the provisions of sections 5

and 6, the Central Bank shall, on the request of the Minister, provide the Minister with information regarding the exercise, performance and discharge of the powers, duties and functions of the Central Bank.

(b)

Any specific information relating to supervised or overseen entities may be provided only for the purpose of the Government’s functions with respect to financial stability, including crisis prevention and crisis management.

(c)

Notwithstanding the confidentiality requirements specified in this Act, the supply of such information shall be subject to such limitations as the Central Bank may deem appropriate to preserve confidentiality.

(5)

In the achievement of financial stability under subsection (3), the Central Bank shall consider the interests of depositors.

Part XI

Financial System Oversight Committee

Part XII

Information Exchange with Financial Sector Authorities

Part XIII

Statistics and Information

Part XIV

Relationship with the Parliament, the Government and the Public

Part XV

Credit Operations

Part XVI

Financial Provisions

Part XVII

Internal and External Audits

Part XVIII

General Provisions

Part XIX

Repeals and Savings