Government Finance Committee (COPF) regarding the report of the Sri Lanka Central Bank (CBSL) regarding the exemptions of the currency policy frame in the section 26 (5) of the Sri Lanka Central Bank Act was discussed in the Government's Finance Committee (COPF) report related to exemptions from the target of inflation.

The report was submitted by the Central Bank of Sri Lanka regarding the exemptions of the financial policy framework for the second and third quarter of the year 2024.

The discussion was held during the meeting of the Government Finance Committee held last 23rd in the chairmanship of Hon'ble Parliamentary Minister (Dr.) Harsha de Silva.

According to the Central Bank of Sri Lanka (CBSL), section 26(5) of the Sri Lanka Central Bank Act (CBA) which holds the 16th number of 2023, the Central Bank fails to maintain the target of the Finance Policy Frame Agreement (MPFA) in a certain quarters for two consecutive quarters, the Finance Policy Board will be the Finance Minister A report should be submitted to the parliament through and it can be available to the public as well.

According to the agreement signed on October 3, 2023, the Central Bank of Sri Lanka has raised the quarterly surface inflation rate to 5% and 2 ± moral percentages for inflation targets based on the requirement of Section 26 (5) of the Central Bank Act.

The quarterly surface inflation rate, measured by the Colombo consumer price index, was excluded from the target of inflation below the marginalized in the Finance Policy Frame (MPFA) for two consecutive quarters of the Colombo consumer price index, which was measured by the Colombo consumer price index, was excluded from the target of inflation below the margin As it has been reported 1.4% and 0.8% respectively, the required report should be submitted to the parliament through the Finance Minister under section 26 (5) of the Sri Lanka Central Bank Act.

Central Bank officials explained the lengthy points regarding this regard and also explanations for questions submitted by Hon'ble Parliamentarians. The Central Bank chief also explained about the key factors that caused the removal of the inflation target and the electricity fees, domestic fuel prices, food prices, strengthening Sri Lankan rupees compared to US dollar, private sector loan transmission, bank interest rates, cash policies through financial system Shown to improve the ration.

Also Sri Lanka showed the need to maintain the 5% inflation targets correctly and the need to maintain the financial policy with the right inside.

Also discussed here about providing relief and encouraging for Small and Medium Scale Business Sector (SME). Based on data provided by the Central Bank, 99% of the loaners with less than Rs 25 million shortage capital in renewable loans will renegotiate with banks and give a 12-month time extension to agree to a path of reconciliation and between Rs 25,000,000 to 50,000,000 Focused here on giving 9 month extension to borrowers and 6 month extension for all other borrowers. Similarly the facts that the government proposed and implemented through the Central Bank is loosening the status of loan grading, extending repayment time, providing lower interest rates for refurbished loans and providing a transparent mechanism to resolve estimated disputes The matter was discussed.

Commenting here, officials representing the Central Bank mentioned that it was difficult to provide the concession with each sector. Also discussed here about the inflation rate run by other countries in the region. Also, the chairman of the committee showed the importance of having such a discussion at least once a quarter.

Hon'ble Deputy Minister Chathuranga Abesinghe Hon'ble Parliamentary Ministers Ravi Karunanayake, Harshana Rajakaruna, (Dr.) Kaushalya Ariyaratne, Arkam Ilyas, Nimal Palihena, Wijesiri Basnayake, Thilina Samarakoon, (Lawyer) Lakmali Hemachandra were present in this meeting. Also with the permission of the committee chairman, respected opposition leader Sajith Premadasa, respected parliamentary ministers Kabir Hashim and Sujeweewa Senasinghe attended the meeting.