The Central Bank of Sri Lanka held its 11th International Research Conference under the theme of "Inflation targeting and Bank’s Independence, Accountability and Transparency," at the John Exter International Conference Hall in Colombo.
This conference is held annually, with the objective of promoting theoretical and empirical research in fields related to contemporary macroeconomic policy, providing an opportunity for researchers from diverse backgrounds to share their findings and experiences.
Dr. Indrajit Coomaraswamy, Governor of the Central Bank of Sri Lanka, delivered the inaugural address of the conference highlighting the need to consider the increasing complexity of the economy and markets in formulating macroeconomic and financial sector policies.
He summarised the progress made in relation to Sri Lanka’s move to flexible inflation targeting as the Central Bank’s new monetary policy framework.
The keynote address of the conference was delivered by Prof. Chetan Ghate, Professor of Economics in the Economics and Planning Unit of the Indian Statistical Institute (ISI), who is also a member of the Monetary Policy Committee of the Reserve Bank of India. Prof. Ghate highlighted the importance of an efficient monetary policy transmission mechanism in the successful implementation of an inflation targeting framework.
An invited presentation, titled “On the Role of the Exchange Rate in an Inflation Targeting Strategy," was delivered by Dr. Hans Genberg, Executive Director of the SEACEN Centre.
Dr. Genberg noted that the Central Bank mandates should be broadly aligned with ultimate objectives of macroeconomic and financial system stability and that the exchange rate should be considered as a tool to help achieve these ultimate objectives of a Central Bank.