In terms of Section 26(5) of the Central Bank of Sri Lanka Act, No. 16 of 2023 (CBA), if the Central Bank fails to meet the inflation target set out in the Monetary Policy Framework Agreement (MPFA) by a margin specified in the same for two consecutive quarters, the Monetary Policy Board is required to submit a report to Parliament through the Hon. Minister of Finance, which shall also be made available to the public. The MPFA signed between the Hon. Minister of Finance and the Central Bank, on 03 October 2023, stipulates the inflation target as 5 per cent and specifies the margin for the purpose of Section 26(5) of the CBA as ±2 percentage points.
Published Date:
Thursday, January 23, 2025