Monetary Policy Announcements in 2018 1  16 February, Friday  2  4 April, Wednesday  3  11 May, Friday  4  29 June, Friday  5  3 August, Friday  6  28 September, Friday  7  14 November, Wednesday  8  28 December, Friday  13  The Central Bank cannot implement a successful FIT framework alone. As we have emphasised in the past, the continued and strong commitment of the government will be of paramount importance. It is encouraging that the government has already recognised the Central Bank’s move towards FIT as the future framework for monetary policy, in its policy document “Vision 2025- A Country Enriched”. Continued strong commitment of the government towards greater fiscal discipline and stronger fiscal outcomes remain key to the successful adoption of FIT. In particular, the government is expected to maintain its commitment to medium-term fiscal consolidation, which is embedded in the IMF-EFF arrangement. The improved fiscal space through continued fiscal consolidation will create a better enabling environment for the effective and independent conduct of monetary policy. This whole effort requires the government’s commitment to remain on the trajectory of fiscal consolidation it has enunciated in its medium-term budgetary framework. The new Inland Revenue Act, enacted with the aim of simplifying and rationalising the existing income tax structure; the VAT reforms; and the improvements in tax administration are worthy achievements. Further, the government expects to strengthen fiscal consolidation by revising the Fiscal Management (Responsibility) Act to include binding fiscal targets.

In addition, several measures were taken to enhance the accountability and transparency of the investment process with greater emphasis on improving the governance structure of fund management, including the establishment of an independent, internal department for risk management. Further, the assistance of the Asian Development Bank (ADB) and the World Bank was obtained to improve internal processes in line international best practices. As in the previous years, we have continued to provide members with the highest possible returns on their fund balances through profitable, yet prudent investments. In 2018, we will take steps to further enhance accountability, transparency and the overall performance of Fund-related activities. Strengthening the overall risk management framework for EPF-related activities will also be among the top priorities in 2018. In this context, we will make every effort to further enhance institutional capacity through continuous training and development, which would be instrumental in conducting investment and fund management activities efficaciously. Technical assistance from ADB, under the capital market development project for Sri Lanka, will also contribute significantly to our capacity development efforts. Most importantly, we will strive to take prudent measures to provide our members with the best possible returns on their provident fund balances with us. In addition, EPF is in the process of implementing the government policy decision to use the new biometric National Identity Card number as a unique identification number for EPF-related transactions.