The Central Bank of Sri Lanka (CBSL) has categorically rejected recent reports alleging that it has printed currency notes valued at Rs. 100 billion through open market operations, labeling these claims as “completely baseless.”
Key Clarifications:
- Open Market Operations Explained: In a statement, the CBSL emphasized that providing liquidity through open market operations is a routine function of the Central Bank. These operations are essential for managing interest rates and maintaining price stability within the economy.
- Distinction from Money Printing: The CBSL clarified that these open market operations should not be misconstrued as money printing. Instead, they are standard measures designed to achieve the Central Bank’s objectives without engaging in improper issuance of currency.
- Nature of Reports: The reports in question arose from misunderstandings surrounding the auctions and monetary operations conducted by the CBSL within the framework of normal market activities.
- No New Currency Issued: The CBSL reaffirmed that there has been no new currency printed or any unauthorized issuance of money aimed at financing the government’s budget. The actions taken were part of the standard processes employed by the bank to ensure price stability.
The statement underscores the Central Bank’s commitment to transparent operations and its efforts to clarify any misconceptions regarding its monetary policy activities.
Updates from: CBSL
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Central Bank of Sri Lanka (CBSL)
Last modified: October 30, 2024
