Central Bank to review its laws

• Appoints two taskforces on monetary side, financial system stability side 

In a fresh bid to safeguard and stabilise the country’s financial system, the Central Bank said it is in the process of reviewing all the major laws and regulations that are relevant.

“We want to update all the laws from Monetary Law Act and downwards,” Central Bank Governor Dr. Indrajit Coomaraswamy told journalists on Tuesday while addressing a special media briefing on ETI Finance (ETFI) and Swarnamahal Financial Services Plc (SFSP) that have presently run into a liquidity crisis. 

He pointed out that it was important to be updated with the new developments in banking regulations to ensure stability and resilience to face the challenging environment and circumstances.

He said the Monetary Law Act, the Banking Act, the Finance Business Act, Registered Stock and Securities Ordinance (RSSO), Treasury Bill Ordinance and all the other relevant laws and regulations would be reviewed in the near future.

“Clearly it will take a bit of time but we want to update all the laws,” he added.

The Governor asserted that the bank had already appointed two taskforces to drive the process. 

“The taskforce looking into the Monetary Law side is chaired by the Senior Deputy Governor Dr. Nandalal Weerasinghe, while the financial system stability side taskforce is headed by Deputy Governor C.J.P. Siriwardena.”

In addition, the Legal and Compliance Department are also backstopping the two taskforces in this regard. (CdS)