Cabinet clears bill for new monetary law



Sri Lanka’s cabinet of ministers has cleared the draft of a new monetary law to be published in the government gazette and presented to parliament, Minister Bandula Gunawardana said

The new law is expected to reduce the room to print money, he said.

The new law is expected to legalize flexibile inflation targeting, which has been in operation from 2015 as two currency crises were triggered through a flexible exchange rate which is neither a clean float nor a hard peg, drawing concerns.

A new monetary law is part of an IMF program.

Officials have said the new law will have provisions for macro-prudential monitoring.



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