Communication Policy of Central Banks: The Case of Sri Lanka

Abstract

Communication policies are important for central banks for two reasons. First, being public institutions it is important to disclose their actions to the general public for maintaining democratic accountability that comes with independence. Second, the policy effectiveness is enhanced if the general public is aware of policies of central banks, and reasons. Realising this, the Central Bank of Sri Lanka is in the process of developing a comprehensive communication policy to portray its accountability and to allow economic agents to make informed judgements about performance of the economy and Central Bank policies. However, there are several issues to be addressed in Sri Lanka before any communication policy takes its intended full effect. (JEL D83, E58)

DOI: 10.4038/ss.v36i1.1228

Staff Studies Volume 36 Numbers 1& 2 2006 p.1-14