Home / TOP STORY/ Central Bank to undergo restructuring: Ravi K

Central Bank to undergo restructuring: Ravi K


Comments / {{hitsCtrl.values.hits}} Views / Wednesday, 16 November 2016 00:00


untitled-9By Chathuri Dissanayake

Finance Minister Ravi Karunanayake yesterday said that the Central Bank will be restructured to ensure better execution of institution’s responsibilities. 

“Central Bank has failed miserably on many fronts,” the Minister charged yesterday, speaking at a budget highlights seminar organised by the Institute of Certified Management Accountants of Sri Lanka.

 “Central Bank is set up by the Constitution to carry out certain monetary measures, but they have been politicised,” an irritated Karunanayake claimed, responding to a question regarding several budget proposals coming under the purview of the Central Bank and Monetary Board. 

The proposals made by the Minister to impose restrictions on loan value ratios, increase capital of commercial banks and directed lending have come under criticism by both politicians and experts.  

Elaborating on the decision to restructure, Karunanayake said the Central Bank needs to limit its involvement to its role “as a regulatory force” not “dabbling in how to run a country”. He highlighted that the Central Bank “should only be monitoring the Government’s activities concerning monetary matters”. He claimed that all Acts including the Banking Act and Payments and Settlement Act, will be “revolutionised”.

“So we are restructuring that and ensuring things go on, because sometimes the activities engaged in by the institution is undesirable, we need to ensure that the economy is put on a firm footing and a safe footing and ensure that everybody gets the same treatment,” he claimed.

Karunanayake told Daily FT that the President and the Prime Minister would be spearheading the restructuring process. However he declined to give further details. 

FTL to be borne by banks

Financial Transaction Levies (FTL) to be slapped on bank deposits and withdrawals to be borne by banks, the Finance Minister clarified yesterday.Responding to questions at the post-Budget forum organised by the Ceylon Chamber of Commerce Finance Minister Ravi Karunanayake insisted that the costs “would in no way” be passed onto consumers.

Economists had previously criticised the proposal in Budget 2017 to impose Rs. 5 on every withdrawal of Rs.10,000 and a percentage off every Rs. 5 m insisting it would discourage banking access. However Karunanayake defended the move on the grounds that it would encourage use of Internet banking and reduce dependency on cash transactions.


Share This Article


DISCLAIMER:

1. All comments will be moderated by the Daily FT Web Editor.

2. Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.

3. We may remove hyperlinks within comments.

4. Kindly use a genuine email ID and provide your name.

5. Spamming the comments section under different user names may result in being blacklisted.

COMMENTS

Today's Columnists

To hang or not to hang!

Tuesday, 17 July 2018

President Maithripala Sirisena dropped a bombshell out of the blues last week, sans all ‘maître’ (loving-kindness) when he launched a coup de main on drug offenders. He threatened to use his powers to place his signature to execute the death sen


The demise of the superstar investor

Tuesday, 17 July 2018

The allure of the superstar investor can be irresistible. You know who they are – the confident, articulate individuals idolised either because of a spectacular non-consensus investment call, the size of their fortune or sometimes because they are


Disruptive economy and poverty of knowledge: Sri Lankans have a lot to learn

Monday, 16 July 2018

The poor are usually defined as those who are below a given level of income that would be insufficient to meet their basic needs. In my view, the poor – no matter whether it is an individual, family or a nation – are those who are unable to read


National prosperity through quality and productivity

Monday, 16 July 2018

I was so delighted to get involved with the national convention of the Sri Lanka Association for the Advancement of Quality and Productivity (SLAAQP) with the fitting theme, “National Prosperity through World Class Quality and Productivity”.


Columnists More