2. Replacement of section 5 of Chapter 422

Section 5 of the Monetary Law Act (hereinafter referred to as the “principal enactment”) is hereby repealed and the following section substituted therefor :—

5. An institution, which shall be called and known as the Central Bank of Sri Lanka

(hereinafter referred to as “the Central Bank”)

is hereby established as the authority responsible for the administration, supervision and regulation of the monetary, financial and payments system of Sri Lanka, and without prejudice to the other provisions of this Act, the

Central Bank is hereby charged with the duty of securing, so far as possible by action authorised by this Act, the following objectives, namely—

economic and price stability ; and

financial system stability, with a view to encouraging and promoting the development of the productive resources of