38  Financial Intelligence Unit We will also act towards strengthening the national Anti-Money Laundering and Countering the Financing of Terrorism policy framework of the country. Considerable progress has been made in completing the Action Plan agreed with the FATF, and our expectation is that Sri Lanka will be taken off the FATF’s ‘grey list’ by mid 2019. We have also expanded our reach by way of entering into Memoranda of Understanding with several agencies such as the Securities and Exchange Commission, Insurance Regulatory Commission and the Department of Motor Traffic. Moving ahead, several progressive policies will be adopted with the coordination of all stakeholders to deepen financial intelligence services. Regional Development With a view to enhancing inclusive and balanced economic growth through effective credit delivery and financial inclusion in the country, we continued to develop and implement new development finance policy strategies during 2018. We continued to coordinate, facilitate and implement various refinance, interest subsidy and credit guarantee schemes, while providing a range of credit supplementary services. Individuals and the Micro, Small and Medium Enterprises (MSME) scattered across the country were served by providing affordable finance through these schemes. 39  To increase the level of financial inclusion, a series of financial literacy and skill development programmes were also conducted, with a special focus on those who have not accessed the formal financial sector. We intend to continue these initiatives in 2019 as well.

Also, several measures were taken to improve the overall risk management framework of the EPF with a view to enhancing accountability and the 36  transparency of investment activities. As a part of this process, new Investment Policy Statement and Investment Guidelines were introduced. The governance structure of the EPF risk management was also strengthened through the establishment of an EPF Investment Oversight Committee in addition to the EPF Investment Committee to monitor investment activities. With the assistance of the Asian Development Bank (ADB), EPF carried out a Business Review with the objective of streamlining and improving its current activities. In addition, the actions pertaining to procuring a new ICT system to automate EPF activities were continued with the assistance of Word Bank. With a view to facilitating web based services, we developed the EPF website and it is expected to be launched shortly. Real time validation of member details and the member account updating procedure were continued through online banking systems of LCBs in 2018. Going forward, EPF expects to generate the highest level of risk adjusted return through different investment strategies, while adhering to the new Investment Policy Statement and Investment Guidelines. The Fund, as a long term institutional investor, is seeking to capitalise on new market opportunities and instruments through a comprehensive investment diversification process. Foreign Exchange Management The liberalisation of foreign exchange transactions was advanced with the introduction of foreign exchange Act No. 12 of 2017 (FEA).