Some legislators have a limited understanding of the function of the central bank. Governor

Some legislators have a limited understanding of the function of the central bank.. According to Mr. Nandalal Weerasinghe, the Central Bank of Sri Lanka has the authority to set the country’s interest rates and foreign exchange rates.

The Governor of the Central Bank stated these views during a conference in Colombo, Furthermore, he said that he was not impressed by the fact that others are attempting to control fiscal decision making and financial policy. The country’s constitution vests monetary power in the parliament, but the central bank has the authority to make financial policy decisions.

He observes that when some ministers make statements during the budget debate these days, it is clear that they have little understanding of the role of the central bank.

Mr. Weerasinghe went on to say that the Parliament does not have complete control over financial matters and that the Parliament only has the authority to deal with public finances.