Central Bank of Sri Lanka
The Central Bank of Sri Lanka (CBSL) is the central banking institution in the Democratic Socialist Republic of Sri Lanka. It was established on January 1, 1950 as a semi-autonomous body corporate with fully independent operations and management under its own Board of Directors. The CBSL has responsibility for formulating and executing monetary policy, managing exchange control regulations, issuing currency notes and coins through commercial banks licensed by it; regulating payment system operators; licensing non-bank financial institutions such as finance companies and microfinance institutions; developing an efficient payment system infrastructure to support electronic payments etc., ensuring effective implementation of anti money laundering/combating financing terrorism measures to prevent use of financial systems for illicit activities etc., providing access to credit facilities at reasonable cost particularly for those involved in agriculture, small scale industrial undertakings or other productive purposes and enhancing public awareness regarding financial literacy.
The governing board consists mainly from members who are appointed by the minister responsible for Finance according to provisions made by Parliament under section 7A(1)of Act No 12 Of 1949 As Amended By Acts Nos 17 Of 1956 And 33 OF 1966 Brought into effect On 22 April 1969 . The Governor who is ex officio Chairman heads this Board which also includes four Deputy Governors , one Director General each representing Departmental Heads In charge Of Banking & Currency , Foreign Exchange , Financial Stability & Supervision Departments respectively two Other Executive Directors Appointed From Amongst Senior Officers In Service At Cbsl Three Non – Executive Members Who Are Not Employees Or Office Bearers At Cbsl One Representative Each From Ministry Of Finance And Economic Development And Reserve Fund Management Agency All Together Making A Total Number Ten To Form The Governing Board .
With regard to foreign exchange operations all transactions outside a company’s normal course business must be approved by the CBSL upon submission of relevant documentation that provides evidence that there exists valid economic reasons behind any transaction. Furthermore any transfers abroad exceeding US $ 10 000 requires prior approval from both CBSLand State Bank unless it’s remittance related transactions like allowances sent home directly from government departments / external employment earnings etc,.Financial Institutions have been authorised only certain types suchas outward personal remittances including gifting up too 5000 USD per month provided recipient details are furnished proof documents about source Funds received if applicable can be requested at time review processing stage.*
