Business
‘New CBSL Act set to have balanced impact on all sectors’
by Sanath Nanayakkare
The dominance of the fiscal policy used by the government over the Monetary Policy of the Central Bank is set to wax and wane under the new Central Bank Act, creating a more balanced and positive impact on all sectors of the economy , Central Bank Governor Dr. Nandalal Weerasinghe said in Colombo recently.
The Governor made this remark on July 21 while delivering the keynote speech at the CFA Society Sri Lanka CEO Forum.
“The new Central Bank Act which was passed in parliament recently will ensure the Central Bank’s mandate to maintain domestic price stability, financial stability and greater accountability to the general public of the country thanks to the provisions that establish the independence of the Central Bank. According to its provisions, whatever we do, we are accountable to the public, to the parliament and to the Cabinet. The new law empowers the Central Bank to implement flexible inflation targeting. And that framework will stay on course irrespective of the administration in power or whoever happens to be on the Monetary Board of the Central Bank. This will ensure predictability and stability of the monetary policy framework. It will also help negate the fiscal dominance on Monetary Policy,” he said.
“With the new law, the Secretary to the Treasury is moving out of the Monetary Board, creating conditions for a much more representative Monetary Board. When the Secretary to the Treasury is sitting on the Monetary Board obviously his mandate is to reduce borrowing costs for the government side by reducing the cost of financing, and this is in conflict with the Monetary Policy,” he said.
“Further, the Central Bank by law, engaged in monetary financing or so-called money printing as it was one of the instruments the Central Bank used over many years, and very heavily within the past two years to facilitate the fiscal policy and government spending. Now it is prohibited under the new Central Bank Act barring in extreme circumstances, subject to approval of parliament. When the fiscal policy’s objectives override, inevitably the Monetary Policy is tainted.” he noted.
The Governor emphasized the fact that Monetary Policy needs to encompass all sectors of the country and not just government’s public finance.
“Thus the new Act enables a welcome separation while having good coordination between the Fiscal Policy and Monetary Policy. Although there is no Treasury Secretary sitting on the Monetary Board now, there will be coordination between Fiscal and Monetary policies through a Coordinating Council, which is an embedded institutional structure in the new law,” he pointed out.
Referring to the appointments of the Central Bank Governor, members of the Monetary Board and the Governing Board, he said,” The new law stipulates the mandatory suitability of the appointees and checks and balances which the Minister of Finance recommends. Subsequently those appointments recommended by the Minister of Finance need to go through the Constitutional Council of bipartisan consensus. Thus the members for these posts will be made for fixed terms regardless of administration changes. Thus there are clauses in the new Act to consolidate the independence of the Central Bank which is a favourable outcome for all sectors in the country,” he said.
Referring to the recent debate in parliament over the draft bill of the Central Bank, the Governor said, “On the whole, it was a good debate although it was obvious that some members of parliament who took part in it, had not read the bill’s provisions.”
The Delegation of German Industry and Commerce in Sri Lanka (AHK Sri Lanka) proudly facilitated the first-ever Sri Lankan delegation’s participation at Drupa 2024, the world’s largest trade fair for the printing industry and technology. Held after an eight-year hiatus, Drupa 2024 was a landmark event, marking significant advancements and opportunities in the global printing industry.
AHK Sri Lanka played a pivotal role in organising and supporting the delegation, which comprised 17 members from the Sri Lanka Association for Printers (SLAP), representing eight companies from the commercial, newspaper, stationery printing, and packaging industries. This pioneering effort by AHK Sri Lanka not only showcased the diverse capabilities of Sri Lanka’s printing sector but also facilitated vital bilateral discussions with key stakeholders from the German printing industry.
Business
Unveiling Ayugiri: Browns Hotels & Resorts sets the stage for a new era in luxury Ayurveda Wellness
In a captivating reimagining of luxury wellness tourism, Browns Hotels & Resorts proudly unveiled the exquisite Ayugiri Ayurveda Wellness Resort Sigiriya. This momentous occasion, celebrated amidst a vibrant and serene grand opening on the 6th of June, heralds a new chapter in the Ayurveda wellness tourism landscape in Sri Lanka. Nestled amidst 54 acres of unspoiled natural splendour, Ayugiri features 22 exclusive suites and stands out as the only luxury Ayurveda wellness resort in the country offering plunge pools in every room, rendering it truly one-of-a-kind.
The grand opening of Ayugiri Ayurveda Wellness Resort was an enchanting event, where guests were captivated by the melodies of flutists and violinists resonating through Sigiriya’s lush landscapes. As traditional drummers and dancers infused the air with vibrant energy, Browns Hotels & Resorts’ CEO, Eksath Wijeratne, Kotaro Katsuki, Acting Ambassador for the Embassy of Japan and General Manager, Buwaneka Bandara, unveiled the resort’s new logo, marking a significant moment witnessed by distinguished guests from the French Embassy, Ayurveda and wellness enthusiasts along with officials from the Sigiriya area, LOLC Holdings and Browns Group.
“Our strategic expansion into wellness tourism with Ayugiri Ayurveda Wellness Resort Sigiriya symbolises a significant milestone for Browns Hotels & Resorts. Wellness tourism has consistently outperformed the overall tourism industry for over a decade, reflecting a growing global interest in travel that goes beyond leisure to offer rejuvenation and holistic well-being. By integrating the timeless wisdom of Ayurveda with modern luxury, we aim to set a new standard in luxury wellness tourism in Sri Lanka. Whether your goal is prevention, healing, or a deeper connection to inner harmony, Ayugiri offers a sanctuary for holistic well-being” stated Eksath Wijeratne.
Ayugiri encapsulates the essence of life, inspired by the lotus flower held by the graceful queens of the infamous Sigiriya frescoes. Just as the lotus emerges from the murky depths, untainted and serene,
Ayugiri invites guests on a journey of purity and rejuvenation, harmonised with a balance of mind, body and spirit, the essence of nature, echoes of culture and the wisdom of ancient Ayurvedic healing.
HNB General Insurance, one of Sri Lanka’s leading general insurance providers, has been honored as the Best General Bancassurance Provider in Sri Lanka 2024 by the prestigious Global Banking and Finance Review – UK.
The esteemed accolade underscores HNB General Insurance’s unwavering commitment to excellence and its outstanding performance in the field of bancassurance. Through dedication and hard work, the HNB General Insurance team has continuously endeavored to deliver innovative insurance solutions, cultivate strong relationships with banking partners, and provide unparalleled service to customers nationwide. This recognition is a testament to the team’s dedication and relentless pursuit of excellence in the bancassurance business.
“We are honored to receive this prestigious award, which reflects our team’s tireless efforts and dedication to delivering value-added insurance solutions and exceptional service through our bancassurance partnerships,” said Sithumina Jayasundara, CEO of HNB General Insurance. “This recognition reaffirms our position as a trusted insurance provider in Sri Lanka and motivates us to continue striving for excellence in serving our customers and communities.”
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