Governor of the Central Bank Mr. Nandalal Weerasinghe says that many people have misunderstood the country’s financial policy and the government’s financial policy.
He says that these are two different matters and that the responsibility for the fiscal policy rests with the Parliament. He also mentioned that the Parliament should decide how the taxpayer’s tax money should be spent.
The Governor of the Central Bank emphasized that the central bank is responsible for the financial policy of the entire country, including the state financial policy.
The Governor of the Central Bank said this while explaining the facts during the discussion on the Central Bank of Sri Lanka Bill.
Fiscal policy is often misunderstood. The fiscal policy of the country and the fiscal policy of the government are two different things. Government financial policy means fiscal policy. That means the Parliament has its full authority under the Constitution itself. One of the main responsibilities of the representatives elected by the people is the fiscal policy. Public finance means how the taxpayer’s financial position is; How to spend it in different ways; What is it used for etc… There, the Parliament has full powers in the matter of fiscal policy. But the central bank has the monitoring policy of the country. That means where the finances of the whole country are dealt with.
The financial policy of the country means the financial policy of the entire country, including the fiscal policy of the government. Everyone have some financial activities. You deposit money in a bank and receive interest. Or take a loan and try to pay that loan. The people of the whole country have that right. In the whole country, the government is only one stakeholder. Only fiscal policy belongs to the government. When it comes to the financial policy of the country, the financial policy of the entire country is the central bank’s responsibility. It is very important to understand the difference.” said the Governor of the Central Bank.
