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CB Governor urges the public to grasp macro matters that shape the economy

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Dr. Nandalal Weerasinghe

By Sanath Nanayakkare

It is important that the general public acquires an understanding on the independent monetary policy of the Central Bank and the fiscal policy of the Government which have achieved economic stability at present, and how the current semblance of stability should be maintained going forward in order to sustain sustainability, Central Bank Governor Dr. Nandalal Weerasinghe said addressing the press at the Central bank.

Referring to Financial Statements and Operations of the Central Bank in 2023 and 2024 he said,” The main message we wish to convey to the general public of the country is that economic stability is now well encapsulated into the macroeconomic picture as a result of the policies that have been implemented by the Government and the Central Bank of Sri Lanka over the past few years. So, what we ought to tell the masses is; it is important to maintain this semblance of stability in the medium to long term for the economy to function well by taking it in the same direction. Such firmness in policy action in the future will further help to contain inflation, make the financial system more robust, increase people’s incomes and reduce poverty.”

“The second most important point is how the Central Bank will be fulfilling its duties in conducting the monetary policy towards transformational growth in line with the macroeconomic targets. There is correlation between fiscal policy and the monetary policy, and therefore, fiscal policy tends to have an impact on monetary policy. Sometimes I see that various incorrect opinions are expressed in parliament and at societal level about these two policies which reflect a gap in understanding the two elements. No other institution but the Central Bank is accountable for conducting the monetary policy of the country which includes interest rates, exchange rate, foreign currency reserves and financial sector stability.”

“The fiscal policy actually comes under the purview of the Executive, the Cabinet, the Parliament, Ministries, Departments etc. The Central Bank has to regulate the financial sector in addition to making monetary policy. The government and the Central Bank are two different institutions. The Central Bank is not literally a government institution but it is a State institution carved out with independent responsibilities, and therefore, is accountable to the parliament. That is why we have captured the details of both policies in our latest economic review report and presented it to the government and the people.”

“Our duty is to control the inflation appropriately and properly manage the banking and non-banking institutions ensuring financial stability. Sometimes it is said that the Central Bank is incurring losses and attempts are made to reflect it as an unsuccessful institution. The Central Bank wasn’t founded in the first place with the objective of making profits. When the Central Bank is conducting its monetary policy it could make a profit or incur a loss. But what actually matters is whether its monetary policy was favorable to the country or not. So, any attempt at measuring the success of the Central Bank on its profit-loss figures is misleading and incorrect. In many years the Central bank has made profits while in some years, it has incurred losses.

“In 2022, the loss of Rs. 374 billion was mainly because of steep depletion of our reserves and our short-term swaps and also huge increase in our loan stock in rupee terms with the phenomenal depreciation of the rupee to the dollar from Rs. 202 to Rs. 370.”

“In 2023, the Central Bank made a loss of about Rs. 700 billion due to domestic debt optimization amounting to Rs. 2.5 trillion. So, I urge the people to be more aware of why the Central Bank makes such losses while it is carrying out its core functions. The public also needs to understand the government’s fiscal policy, the relation between the government and the Central Bank and the responsibilities between the two entities,” the Governor said.

He urged the public to grasp the macro matters in their true essence and understand the need to stay the current course to sustain the sustainability for their lives to be less burdensome in the future.



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HNB partners IDEAL Motors to drive financial freedom through vehicle leasing solutions

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HNB, Senior Vice President/Head of Retail Banking, Kanchana Karunagama and Director of Legal & Corporate Affairs, Nimisha Welgama sharing the MoU, alongside the representatives from both organizations

HNB PLC, the leading private bank in Sri Lanka, has partnered with IDEAL Motors (Pvt) Limited to provide customers with attractive leasing solutions for brand-new vehicles & generators .

The partnership introduces a range of benefits designed to support individuals, entrepreneurs, and businesses seeking reliable vehicle and power solutions. Through this collaboration, customers can access structured lease facilities, special interest rates, free life insurance coverage, and attractive discounts through HNB General Insurance.

Commenting on the partnership, HNB, Senior Vice President/ Head of Retail Banking, Kanchana Karunagama, said, “At HNB, we believe that the right financial support can help people and businesses move forward with greater confidence. This partnership with IDEAL Motors shows our commitment to creating meaningful solutions that make vehicle and power investments more accessible, while helping our customers achieve their personal and business aspirations. By combining HNB’s financial expertise with IDEAL Motors’ industry capabilities, we are creating opportunities that support the ambitions of Sri Lankans and contribute towards a stronger, more connected economy.”

Customers purchasing vehicles through IDEAL Motors will also benefit from exclusive offers including free registration, and discounts on Bolero Maxx Pik-Up, Alfa Plus Load Carrier, Mahindra Pik-Up Single Cab, Mahindra Pik Up Double Cab, XUV 3XO vehicles, creating greater value throughout their ownership journey.

IDEAL Motors (Pvt) Limited, Director Legal and Corporate Affairs, Nimesha Welgama, said, “Our collaboration with HNB represents a shared commitment to supporting Sri Lankans in achieving greater financial independence through accessible ownership solutions. By combining IDEAL Motors’ mobility and power solutions with HNB’s financial expertise, we aim to empower individuals and businesses with opportunities that contribute to economic progress and community development. This partnership highlights our vision of creating lasting value by enabling customers to confidently invest in their future.”

With IDEAL Motors recognised for its diverse portfolio of automotive and power solutions, and HNB’s extensive expertise in financial services, the partnership aims to provide a seamless experience from selection to ownership, supported by flexible financing options and customer focused solutions.

The partnership further strengthens HNB’s commitment to supporting economic progress by providing financial solutions that enable customers to invest in personal mobility, commercial growth, and business continuity. Through collaborations with leading industry partners, HNB continues to expand opportunities for Sri Lankans while delivering a banking experience built around accessibility, trust, and value.

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Sri Lanka Insurance Corporation General and the Ministry of Education committed to protect Sri Lanka’s schoolchildren

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Sri Lanka Insurance Corporation General Ltd (SLICGL) and the Ministry of Education, Higher Education and Vocational Education share a commitment to protect Sri Lanka’s children throughout their school education. The pledge is delivered through the Suraksha Student Insurance Scheme, which protects over 4 million school children.

The Government of Sri Lanka, through the Ministry of Education, Higher Education and Vocational Education, provides the Suraksha Student Insurance Scheme free of charge to schoolchildren throughout the country. SLICGL is proud to partner with the Ministry in delivering this national initiative, which helps safeguard students against the financial impact of unforeseen circumstances.

Eligible students include those aged 5-21 years in Grades 1-13 from government schools, government-approved private schools, and Pirivena education, as well as students aged 4-21 years in assisted special schools.

The scheme provides hospitalisation, outpatient and critical illness cover, as well as personal accident cover for permanent and temporary disability, together with a life insurance benefit for children from low-income families on the death of a parent. Cover applies to incidents within and outside school premises.

For a child, an illness or accident can be far more than a temporary setback. It can place added pressure on a family and, in some circumstances, disrupt schooling. Suraksha acts as a safety net, giving children and their families greater peace of mind and helping them stay in school despite life’s uncertainties. The scheme is easily accessible through SLICGL’s islandwide network of 200 branches and customer service centres.

Children’s Day is a celebration of hope, the hope for every child to have the opportunity to learn, grow and build a better future. Celebrating children also means protection, not for a single day but for every day they spend in the classroom.

Commemorating Children’s Day, SLICGL extended support towards the educational needs of children at an underprivileged school. The project highlighted the company’s belief in protecting the future not only by being supportive when the unexpected happens, but also in helping create an environment in which children can learn, grow and fulfil their potential.

As Sri Lanka’s National Insurer, SLICGL’s role goes further than protecting people against risk. It is also about contributing to a stronger, safer and more resilient country as children’s education, wellbeing and aspirations contribute directly to help build the journey ahead.

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Vietjet launches Hanoi to Prague route via Almaty, expanding to Central Asia and Europe

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Inaugural celebrations for the new Prague to Almaty and Prague to Hanoi services mark an important milestone in Vietjet’s intercontinental network expansion

Vietjet, which already flies between Colombo and Ho Chi Minh City, has officially launched new services connecting Hanoi with Almaty, Kazakhstan, and Prague, Czech Republic, as well as Almaty with Prague, expanding its intercontinental network and marking its entry into the European Union. The new air links offer more affordable travel options while fostering greater tourism, trade and cultural exchange between Asia and Europe.

For Sri Lanka, the new routes widen the network that Vietjet is building out of Colombo. The airline has operated non-stop flights between Colombo and Ho Chi Minh City since August 2026, three times a week on Tuesdays, Thursdays and Saturdays, while its new Ho Chi Minh City to Maldives service via Colombo is scheduled to begin on 5 December 2026. With Hanoi now linked to Central Asia and Europe, Sri Lankan travellers have a growing choice of destinations reachable through Vietjet’s extensive network.

The inauguration ceremonies took place at Almaty International Airport and Václav Havel Airport Prague on 10 October, amid a warm welcome from local leaders, residents and visitors. The inaugural flights were greeted with traditional water cannon salutes and performances showcasing local cultural heritage, marking the beginning of new journeys connecting the three regions and welcoming international travellers to Vietnam. Passengers on the inaugural flights also received commemorative gifts from Vietjet and the airports, adding a special touch to their journeys.

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