Sri Lanka’s Central Bank has undergone significant governance changes, with Sanjeeva Jayawardena PC and A.N. Fonseka appointed to its new Governing Board under the CBSL Act No. 16 of 2023. In a recent development, Jayawardena resigned from the board ahead of a Supreme Court judgment related to an economic crisis case.
The bank’s restructuring comes at a crucial time as the country navigates through challenging economic conditions. The Supreme Court issued its decision concerning the economic crisis on Friday, following the resignation of two key figures who transitioned to the Governing Board. Both had tendered their resignations prior to the court’s ruling.
Dr. Ranee Jayamaha, who had stepped down from the Monetary Board on September 12, did not join the new board configuration which includes Chairman Dr. P Nandalal Weerasinghe, A.N. Fonseka, and appointees Drs. Ravi Ratnayake and Anushka S. Wijesinha, as well as Vish Govindasamy.
In an effort to bolster the bank’s expertise, President Wickremesinghe secured Constitutional Council consent to appoint technical experts Drs. Dushni Weerakoon and Priyanga Dunusinghe to the Monetary Policy Board on September 21. They are tasked with collaborating with Deputy Governors to develop monetary policy within a flexible exchange rate framework, focusing on price stability and financial system stability to maintain domestic price equilibrium.
This reshuffling reflects Sri Lanka’s commitment to addressing its economic challenges by bringing in specialized knowledge and experience to guide its monetary policy during these turbulent times.