DABF – Central Banking

Central banks are critical institutions that shape both national and global economies. In Sri Lanka, the Central Bank of Sri Lanka (CBSL) is responsible for formulating monetary policy, regulating financial institutions, and maintaining economic stability. The CBSL’s role is particularly crucial in managing inflation, stabilizing the currency, and supporting sustainable growth, especially amid challenges like inflation, external shocks, and trade disruptions.

Globally, central banks such as the Federal Reserve (USA), the European Central Bank (ECB), and the Bank of England influence global financial markets, interest rates, and trade flows. Their policies have a profound impact on emerging economies like Sri Lanka, especially regarding capital flows, inflation, and exchange rates.

Understanding the role of central banks in Sri Lanka and their global counterparts is essential for analyzing how monetary policies affect local economies and international financial systems. This course will provide students with a comprehensive understanding of central banking functions and their impact on the global and Sri Lankan economies.