Which institution became Sri Lanka’s central bank when it was established by the Monetary Law Act in 1950?

The Central Bank of Sri Lanka became Sri Lanka’s central bank when it was established by the Monetary Law Act in 1950.

The institution was originally known as the Central Bank of Ceylon, reflecting the country’s name before it became Sri Lanka in 1972. Its creation followed recommendations associated with the American economist John Exter.

The central bank conducts monetary policy, regulates financial institutions, manages official reserves, and issues Sri Lankan currency. Its headquarters are in Colombo.

The Central Bank of Sri Lanka is distinct from the Bank of Ceylon. The Bank of Ceylon is a commercial bank founded in 1939, while the central bank is the national monetary authority established after the country gained independence.