Central Bank Back Under Finance Ministry

In 2015, followed by the election of President Sirisena, the Central Bank was put under the Ministry of National Policies.

By issuing an Extraordinary Gazette notification last evening, the President Maithripala Sirisena has   removed the Central Bank from the purview of the Ministry of National Policies and Economic Affairs and brought it back to the Ministry of Finance. The Security and Exchange Commission of Sri Lanka too was brought the Ministry of Finance.

As per  Gazette notification , the Monetary Law Act No. 58 of 1949, Public Utilities Commission of Sri Lanka Act No. 35 of 2002, Exchange Control Act No. 24 of 1953, Securities and Exchange Commission of Sri Lanka Act No. 36 of 1987, National Youth Service Council Act No. 69 of 1979, Youth Corps Act No. 21 of 2002, Children and Young Persons Ordinance No. 48 of 1939, National Insurance Trust Fund Act No. 28 of 2006 have also been taken from the purview of the Ministry of National Policies and Economic Affairs, held by Prime Minister Ranil Wickramasinghe.

The removal of the Central Bank was fermenting for a while after criticism was levelled following the Central Bank bond scam and the subsequent information revealed through the Presidential Commission of Inquiry appointed to probe irregularities in bond transactions.

Various factions alleged had the Central Bank was under the Finance Ministry, the appointment of former Central Bank Governor and that the bond scam would not have occurred.

President Maithripala Sirisena’s move exactly one week before the contentious No-Confidence motion against the Prime Minister is seen as prelude by political observers.