Furthermore, the Bank is the only body responsible for conducting monetary policy. In addition, credits extended to the Treasury and other public institutions are now illegal and the Bank shall not purchase debt instruments issued by the Treasury or by public establishments and institutions in the primary market. Amendments to the Central Bank Law constitute an important institutional step taken on our way to the European Union. All of these mean the Bank determines the monetary policy and the policy instruments to be used at its own discretion. As a natural consequence of this discretion, the Bank is also required to establish the highest possible level of accountability and transparency. According to its Law, each year in April and in October the Governor appears before the Council of Ministers to explain monetary policy and operations. We also make presentations to the Parliament twice a year. Similarly, the Central Bank gives utmost importance to transparency. BIS Review 19/2006  3  Evidently, transparency and accountability cannot be considered separately from the communication policy. Good communication appears to be an unquestionable condition for the effectiveness of monetary policy. Only in that way, the Central Bank can manage to be correctly understood by economic agents and shape expectations the way it desires. Besides, good communication plays an important role in reducing uncertainties and enhancing confidence by rendering the Central Bank’s policies more understandable and predictable. The insulation of the public communication from political pressures constitutes one of the most important aspects of good communication.

Key entry points for financial inclusion These could be through: (a)  Direct loans or banking facilities to the targeted vulnerable communities or groups;  (b)  Facilitation of economic activity in a particular geographical area of operations or location;  (c)  Development of local or national infrastructure to enable a particular type of business activity, which could then be practiced or performed by a group or groups which can include women; and  (d)  Providing an enabling environment and/or enhancements for such economic activity to take place. The enabling environment includes laws, regulations, taxation, skills development, duty waivers, subsidies, etc. In this context, tax concessions and duty waivers given to make enterprises be “financially inclusive” are often forgotten. In fact, due to lack of awareness, enhancement of access to finance or financial inclusion that has already taken place in various sectors, and the enabling environment that has been created, are taken for granted with no value attached to them. Women’s contribution to economic development Let me now deal with the importance of women’s contribution to the economic development in Sri Lanka and assess whether financial inclusion of, and access to finance by women are on par with the contribution they make. Women in Sri Lanka have been engaged in economic activities over centuries of history primarily through employment. Due to low productivity and inadequate incomes in the agricultural sector, women in small farm families have moved from unpaid family labour to other occupations, in particular, to garment factories and employment abroad.