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Ban on Willfully Mutiled, Alterated and Defaced Sri Lankan Currency Notes

The Central Bank of Sri Lanka (CBSL) has drawn attention of the general public for implementation of its Clean Note Policy and regulation on the willfully mutilation, alteration or defacement of Sri Lanka currency notes. The Clean Note Policy has been introduced by CBSL aiming at maintaining the quality standards of the currency notes and thereby helping to distinguish between genuine notes and counterfeits. It is also expected through this policy to enhance image of the country and promote the efficiency of processing currency notes.

Willfully mutilation, alteration or defacement of Sri Lanka currency notes is an offence under the Monetary Law Act No. 58 of 1949, and is punishable by imprisonment or fine or both. Under the Regulation E of the Monetary Law Act, no claim in respect of the willfully mutilated or altered notes shall be entertained and such notes shall be retained by CBSL. The holder of these currency notes will have to suffer the loss of face value of such notes.

Central Bank of Sri Lanka - 10th International Research Conference

The 10th International Research Conference of the Central Bank of Sri Lanka was held on 08 December 2017 at the John Exter International Conference Hall of the Central Bank. The conference was organised under the theme of “Macroeconomic Policy Reforms towards a Vibrant Future” with the aim of encouraging innovative theoretical and empirical research on current macroeconomic policy issues, while providing a platform for researchers from policy making and academic institutions to share their experiences and views from diverse perspectives.

As in the past, the 10th International Research Conference attracted eminent researchers from renowned universities, research institutions and central banks around the world. 

The International Monetary Fund Releases the Fourth Tranche of USD 251.4 million under the Extended Fund Facility

The Executive Board of the International Monetary Fund (IMF) completed the third review of the three-year Extended Fund Facility (EFF) obtained by Sri Lanka, enabling the disbursement of the fourth tranche to the value of SDR 177.774 million (approximately US dollars 251.4 million). 

Sri Lanka Prosperity Index - 2016

Prosperity, measured by the Sri Lanka Prosperity Index (SLPI) , which is a composite indicator that measures and compares the level of prosperity of the country and across its provinces, improved to 0.746 in 2016 from 0.685 in the previous year. In analyzing the movements of the sub-indices of SLPI, for the period of 2015 to 2016, the Economy and Business Climate and Well-being of the People sub-indices have improved, while there is a moderation in Socio-Economic Infrastructure sub-index. 

Regulatory Actions on Distressed Finance Companies

The Monetary Board of the Central Bank of Sri Lanka (CBSL) on 06.11.2017 decided to issue a notice of cancellation of the Licence issued to Central Investments and Finance PLC (CIFL) to carry on finance business under the Finance Business Act No. 42 of 2011.

CIFL was confronted with severe liquidity crisis since 2013 due to mismanagement and other irregular transactions carried out by the management of that company. It has also been observed that the directors and senior management of these companies have fraudulently inflated the value of the assets and the examination of the documents relating to such assets has revealed that those are either fictitious or entangled with encumbrances.

Establishing the Department of Foreign Exchange to Implement the Foreign Exchange Act, No. 12 of 2017

With a view to further liberalizing capital flows and simplifying the processes associated with current account transactions and various types of foreign currency/Rupee accounts, the Government declared in its Budget Proposals for 2016, that a new foreign exchange law will be introduced.

In keeping with this announcement, a new legislative and policy framework for foreign exchange operations has been implemented by the Foreign Exchange Act, No. 12 of 2017 with effect from November 20, 2017, repealing the Exchange Control Act, No. 24 of 1953. Provisions of the new Act are being implemented through the newly established Department of Foreign Exchange in the Central Bank of Sri Lanka.

Relevant Regulations and Orders made under the new Act by the Hon. Minister of National Policies and Economic Affairs have been published in the Gazette Notification No. 2045/56 dated November 17, 2017, while Directions have been issued to Authorized Dealers by the Director of Department of Foreign Exchange on November 20, 2017.

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