Central Bank of Sri Lanka Began as the Central Bank of Ceylon Under the Monetary Law Act

Country Focus Institution Economy & Banking

Central Bank of Sri Lanka Began as the Central Bank of Ceylon Under the Monetary Law Act

Background

Sri Lanka's currency is the rupee (Rs.), with 100 cents equal to a rupee.
The Central Bank of Ceylon was established by the Monetary Law Act (MLA) No. 58 of 1949 and commenced operations on August 28, 1950.
The Monetary Law Act ended the Currency Board System, which had been set up under the Paper Currency Ordinance.
It was renamed the Central Bank of Sri Lanka (CBSL) in 1985.
The CBSL Act No. 16 of 2023, brought into law in September 2023, supersedes the Monetary Law Act that established the bank in 1950 as a semi-autonomous body.
Under the new act, the CBSL shall be autonomous and accountable.

Currency: Rupee (100 cents) Founding law: Monetary Law Act No. 58 of 1949 Operations began: August 28, 1950 Renamed CBSL: 1985 Present law: CBSL Act No. 16 of 2023

Why it matters for exams: Central-bank founding statutes and renamings are routine recall items, and the 1949 Act versus the 2023 Act is an easy place to confuse candidates.

Kerala PSCUPSC

7 October 2026 Source: Central Bank of Sri Lanka - Bank History

In plain words

MLA Monetary Law Act — The 1949 statute under which the Central Bank of Ceylon was established.

CBSL Central Bank of Sri Lanka — The country's apex financial institution, as its own overview describes it.