The Central Bank of Sri Lanka (CBSL) today declined as completely baseless the current reports claiming that the CBSL has actually printed currency notes to the value of Rs.
100 billion through Sri Lankas open market operations.Issuing an explanation in this regard, the CBSL explained that offering liquidity through open market operations is amongst the basic affairs performed by the Central Bank.Further, the CBSL clarified that the free market operations are carried out to preserve cost stability through handling the interest rate, which this procedure can not be classified as simple money printing.Additionally, the statement highlighted that the said reports have been released regarding the auctions and monetary operations performed by the Central Bank of Sri Lanka in the general open market activities.As an outcome, there has been no printing of new currency notes or inappropriate issuance of cash to finance the governments budget, and what has taken place is just a typical process to achieve the objectives of rate stability of the Central Bank, it added.