The ability of the Central Bank of Sri Lanka to print money has been limited with the enforcement of the new Central Bank Act.
The Central Bank of Sri Lanka Bill was passed in Parliament with amendments in July while it came into effect as an Act from yesterday.
The Act empowers the CBSL in various ways while ensuring its independence.
Acting Minister of Finance Ranjith Siyambalapitiya noted that the Act limits the ability to print money excessively, which caused major issues in the country in recent times.
According to the Act, the Central Bank will be able to print money during special circumstances such as when dealing with a national security or health emergency.
Meanwhile, with the enforcement of the Act, the Treasury will not be able involved in the process to appoint a Governor of the Central Bank.