According to the constitution of the country, although the parliament has the final authority regarding public finances, the central bank is the only institution authorized to make decisions related to the country’s financial policy, says its president, Dr Nandalal Weerasinghe.
Addressing an event organized by garment workers in Colombo, the governor said that certain statements made in the budget debate show that those statements were made due to a lack of understanding of the role of the Central Bank.
The Governor mentioned that the people and business people think that they should talk to the Central Bank as soon as relief is needed, and the reason for this is that some former governors of the Central Bank talk about everything else without the monetary policy.
The Governor of the Central Bank further stated that there should be coordination between fiscal policy and fiscal policy for macroeconomic stability.
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