By Ravi Ladduwahetty
Ceylon Finance Today: In a far reaching move towards the assured good governance, the government has decided to position the Central Bank of Sri Lanka under the Minister of Policy Planning, Economic Affairs, Child, Youth and Cultural Affairs whose Minister is Prime Minister Ranil Wickremesinghe himself.
This was revealed in the Gazette Extraordinary of 1897/15 of 18 January, which was released yesterday.
Accordingly, some other State sector institutions, which were hitherto under the aegis of the Ministry of Finance and Planning such as the Securities and Exchange Commission, the Employees Trust Fund, the National Insurance Trust Fund, the Department of External Resources and the Department of National Planning too, have been placed under the aegis of the Ministry of Policy Planning, whose Minister is Prime Minister Ranil Wickremesinghe.
This was a strategic move of the government, which was aimed at good governance and transparency. The reason for the chaos all these years was both the Central Bank and the Treasury being under the Minister of Finance and that was why the government decided to segregate the two; Deputy Minister of Highways and Investment Promotion Eran Wickremaratne confirmed to the Ceylon FT last night.
However, he said that there was a conflict of interest of keeping the Central Bank, which managed the Employees' Provident Fund under the Ministry of Finance. "On the one hand, the Central Bank borrows money for the government, which is expected to be at the lowest interest rates, while the Employees' Provident Fund, is expected to deliver the highest rates of return to the stakeholders, he said.
However, he said there would have to be a series of legal amendments to draw the EPF out of the aegis of the Central Bank.
Other important State institutions, which have been placed under the Ministry of Policy Planning are: the Institute of Policy Studies, and the Census and Statistics Department.
www.ceylontoday.lk
Ceylon Finance Today: In a far reaching move towards the assured good governance, the government has decided to position the Central Bank of Sri Lanka under the Minister of Policy Planning, Economic Affairs, Child, Youth and Cultural Affairs whose Minister is Prime Minister Ranil Wickremesinghe himself.
This was revealed in the Gazette Extraordinary of 1897/15 of 18 January, which was released yesterday.
Accordingly, some other State sector institutions, which were hitherto under the aegis of the Ministry of Finance and Planning such as the Securities and Exchange Commission, the Employees Trust Fund, the National Insurance Trust Fund, the Department of External Resources and the Department of National Planning too, have been placed under the aegis of the Ministry of Policy Planning, whose Minister is Prime Minister Ranil Wickremesinghe.
This was a strategic move of the government, which was aimed at good governance and transparency. The reason for the chaos all these years was both the Central Bank and the Treasury being under the Minister of Finance and that was why the government decided to segregate the two; Deputy Minister of Highways and Investment Promotion Eran Wickremaratne confirmed to the Ceylon FT last night.
However, he said that there was a conflict of interest of keeping the Central Bank, which managed the Employees' Provident Fund under the Ministry of Finance. "On the one hand, the Central Bank borrows money for the government, which is expected to be at the lowest interest rates, while the Employees' Provident Fund, is expected to deliver the highest rates of return to the stakeholders, he said.
However, he said there would have to be a series of legal amendments to draw the EPF out of the aegis of the Central Bank.
Other important State institutions, which have been placed under the Ministry of Policy Planning are: the Institute of Policy Studies, and the Census and Statistics Department.
www.ceylontoday.lk
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