Ravi Karunanayake has criticized the operations of the Central Bank of Sri Lanka, arguing that the institution’s current approach to monetary management directly impacts the country’s overall economy.
Speaking on the role of monetary governance, the former United National Party Deputy Leader stated that although monetary powers ultimately rest with the Parliament of Sri Lanka, it is the Central Bank that implements monetary policy decisions.
According to Karunanayake:
“The shortsighted way in which the Central Bank is currently operating directly affects the country’s entire economy.”
The MP further alleged that:
- Before becoming an independent institution in 2023, the Central Bank had contributed to the country’s economic collapse
- After gaining greater institutional independence, the banking system itself has faced growing problems
Karunanayake also accused the Central Bank of:
- Distorting information
- Failing to present the full economic reality
- Lacking transparency in financial governance
He argued that what is now required is greater accountability and transparency regarding monetary management and financial sector oversight.
The remarks come amid ongoing public debate over:
- Monetary policy decisions
- Interest rate increases
- Exchange rate management
- Banking sector oversight
- Inflation control and economic recovery efforts in Sri Lanka
The Central Bank recently increased the Overnight Policy Rate to 8.75% and has introduced several macroprudential measures in response to exchange rate pressures and inflation concerns.
