The Central Bank of Sri Lanka (CBSL) dismissed recent reports alleging it had printed Rs. 100 billion as “completely baseless.” In a statement issued today (29), the CBSL clarified that the liquidity provided through open market operations is part of its standard functions and should not be misunderstood as money printing.
The bank explained that these operations aim to manage interest rates and ensure price stability, not to create new currency. Furthermore, CBSL emphasized that the reports in question relate to regular auctions and monetary activities, not unauthorized money issuance to fund the government budget.
CBSL assured that these operations are aligned with its objective of maintaining economic stability.