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Sri Lanka’s new central bank governor assumes duties

COLOMBO (EconomyNext) – Sri Lanka’s new Central Bank Governor Arjuna Mahendran assumed duties Monday.

Sri Lanka’s central bank has a monopoly in the issue of money in the island and is the sole agency that can keep inflation down by limiting the issue of money to a consistent rule.

Mahendran will chair the agency’s Monetary Board, which can raise rates by withdrawing money from the banking system, or print fresh money and keep rates below what it would have been if credit demand was allowed to move the interest rate.