Sri Lanka to reform central bank, exchange controls; EPF taken out: PM
ECONOMYNEXT – Sri Lanka will reform the Central Bank, taking out exchange control and the management of a retirement fund funds away from it, Prime Minister Ranil Wickremesinghe said in a policy statement.
The exchange control act will be reformed into an ‘exchange management act’ he told parliament.
Sri Lanka had free capital movement under British rule but some restrictions were brought during World Wars in the last century and draconian exchange controls were brought after a money printing central bank was built in 1951.
Everyone who tried to use other currencies to preserve their savings when the central bank printed money were made into criminals.
He said the Employment Trust Fund will be taken out of the Central Bank and put under a separate trust under the constitutional council.