conference of the european systemic risk board, frankfurt am main, 8 december ; and schnabel, i. ( 2021 ), “ monetary policy and inequality ”, speech at a virtual conference on “ diversity and inclusion in economics, finance, and central banking ”, frankfurt am main, 9 november. 7. see, for example, cavallo, m. et al. ( 2019 ), “ fiscal implications of the federal reserve's balance sheet normalization ”, international journal of central banking, issue 61, pp. 255 - 306. 8. see also arrata, w. et al. ( 2020 ), “ the scarcity effect of qe on repo rates : evidence from the euro area ”, journal of financial economics, vol. 137, issue 3, september, pp. 837 - 856 ; and brand, c. et al. ( 2019 ), “ from cash - to securities - driven euro area repo markets : the role of financial stress and safe asset scarcity ”, working paper series, no 2232, ecb, january. 9. the latest adjustment on lending limits against cash took place on 10 november 2022. 10. these concerns were related to additional cash inflows from the eurosystem ’ s non - monetary policy deposits, as the remuneration of these deposits was initially unclear. ultimately, however, net inflows to repo markets were limited during the episode of market strain, suggesting that behavioural factors have played a predominant role. 11. the remuneration of deposits held under the eurosystem reserve management services framework was adjusted accordingly. 12. see, for example, schnabel, i. ( 2022 ), “ finding the right sequence ”, speech at a virtual policy panel on “ unwinding qe ” at the first annual bank of england agenda for research ( bear ) conference, frankfurt am main, 24 february. there are attempts to quantify the equivalence between changes in the balance sheet and interest rates, see wei, b. ( 2022 ), “ quantifying “ quantitative tightening ” ( qt ) : how many rate hikes is qt equivalent to? ”, working paper series, no 2022 - 8, federal reserve bank of atlanta, july. 13. see krishnamurthy, a. and vissing - jorgensen, a. ( 2011 ), “ the effects of quantitative easing on interest rates : channels and implications for policy

exchange control department also initiated a number of measures in order to create a more conducive environment for both local microfinance sector, thus facilitating greater financial inclusion. also, as the sole authority for issuing currency, the bank has continued to ensure that all cash transactions take place smoothly. we consider that communication is an integral part in pursuing policy actions and discharging our responsibilities. considering the utmost importance of clear communication and enhanced transparency, we attach priority to formulating our policies in a forward looking manner, which will help economic agents to make their economic decisions in a more informed manner. and foreign investors. the new foreign ladies and gentlemen, today, we are exchange act is designed to effect living in a challenging world. sri lanka is further improvements in this regard. a gradually transforming to an upper number of measures will be taken in the middle income economy. however, the medium term to further relax foreign objectives of the government and the exchange transactions. the central bank aspirations of the people cannot be met is also the manager of the employees ’ through “ business as usual ” on the part provident fund, which is the largest of the public and private sectors. superannuation fund in the country. government policy making needs to be through the activities of the regional proactive. it has to be more data driven development department and the and less influenced by short - term provincial offices, the central bank seeks political expedience. equally, the private central bank of sri lanka – road map 2017 sector needs to recalibrate its risk when we review sri lanka ’ s post - appetite and take advantage of independence economic performance, it opportunities generated by improving is clear we could have done better. in macroeconomic policies and a more the central bank ’ s context, the conducive, enabling environment for perennial excess aggregate demand in business. we would all like progress to the economy, created by large fiscal be faster but the direction of travel is deficits, has complicated monetary and clearly positive. there is also the exchange rate policies. likelihood that, as the reforms gain momentum, the pace of change will accelerate, provided there is the commitment to persist with the measures that are necessary to place the economy on a higher trajectory of growth, employment generation and incomes. as the central bank, we have a pivotal role to play while being at the heart of this much needed transformation. the government is putting forward many new initiatives to develop the country. this is happening at a time when the global economy is undergoing yet