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Why did the country go bankrupt despite having a large number of financial laws..?


2022-06-25 7703

 

(Deshapriya Nanayakkara)
 


It is absolutely true that financial regulation plays a crucial role in the political horizon. Banks are not just money lenders, they are money makers in an important sense.

Money creation or money issuance is the process that enhances the supply of money in an economy or finance sector. It is the Central Bank that controls the creation of money in most of the modern economies. The money issued by the Central Bank is called Base Money. The Central Bank can increase the basic quantity of money directly by engaging in the money operations in the open market.

The financial sector of any country includes a large group of industries related to banking, lending, insurance, investment, wealth, and other business activities related to money allocation. Even though there are several comprehensive measurement methods for the global financial sector, the only method available to estimate its volume is estimation.

As a result, a large number of constitutional conventions are implemented to monitor the banking system including the Central Bank of Sri Lanka.

Monetary Law Act, No. 58 of 1949 (Incorporating Amendments up to 30th June, 2014)

Banking Act, No. 30 of 1988.

Finance Business Act, No. 42 of 2011.

Finance Leasing Act, No.56 of 2000.

Micro finance Act, No. 6 of 2016.

Monetary Law Act No. 58 of 1958 (No. 2263/41 - January 21, 2022)

Foreign Exchange Act No. 12 of 2017  (No. 2234/49 - July 02, 2021)

Foreign Exchange Act No. 12 of 2017  (No. 2222/60 - April 09, 2021)

Foreign Exchange Act No. 12 of 2017  (No. 2220/69 - March 26, 2021)

Foreign Exchange Act No. 12 of 2017  (No. 2218/38 - March 09, 2021)

Foreign Exchange Act No. 12 of 2017  (No. 2215/39 - February 18, 2021)

Foreign Exchange Act No. 12 of 2017  (No. 2213/40 - February 03, 2021)

Foreign Exchange Act No. 12 of 2017  (No. 2213/39 - February 03, 2021)

Foreign Exchange Act No. 12 of 2017  (No. 2213/38 - February 03, 2021)

Foreign Exchange Act No. 12 of 2017  (No. 2213/37 - February 03, 2021)

Foreign Exchange Act No. 12 of 2017  (No. 2213/36 - February 03, 2021)

Foreign Exchange Act No. 12 of 2017  (No. 2213/35 - February 03, 2021)

Foreign Exchange Act No. 12 of 2017  (No. 2213/34 - February 03, 2021)

Foreign Exchange Act No. 12 of 2017  (No. 2206/25 - December 18, 2020)

Foreign Exchange Act No. 12 of 2017  (No. 2202/7 - November 17, 2020)

Foreign Exchange Act No. 12 of 2017  (No. 2196/22 - October 06, 2020)

Foreign Exchange Act No. 12 of 2017  (No. 2182/37 - July 02, 2020)

Foreign Exchange Act No. 12 of 2017  (No. 2182/33 - July 01, 2020)

Foreign Exchange Act No. 12 of 2017  (No. 2182/32 - July 01, 2020)

Foreign Exchange Act No. 12 of 2017  (No. 2170/4 - April 08, 2020)

Foreign Exchange Act No. 12 of 2017  (No. 2169/3 - April 02, 2020)

Foreign Exchange Act No. 12 of 2017  (No. 2145/49 - October 17, 2019)

Foreign Exchange Act No. 12 of 2017  (No. 2112/25 - February 28, 2019)

Foreign Exchange Act No. 12 of 2017  (No. 2112/17 - February 27, 2019)

Foreign Exchange Act No. 12 of 2017  (No. 2063/12 - March 19, 2018)

Foreign Exchange Act No. 12 of 2017 (No. 2045/56 - November 17, 2017)

Foreign Exchange Act No. 12 of 2017 (No. 2043/31 - October 31, 2017)

Foreign Exchange Act No. 12 of 2017 (No. 2040/43 - October 13, 2017)

Foreign Exchange Act No. 12 of 2017 (No. 2036/32 - September 14, 2017)

Foreign Exchange Act No. 12 of 2017  

Exchange Control Act No. 24 of 1953 (Repealed with effect from 20.11.2017)
 
Employee Provident Fund

Employees Provident Fund (Amendment) Act, No 2 of 2012

EPF Act No 15 of 1958 and Amendments ( Incorporating Amendments up to 31st December, 1998 )
 
Other Legislative Enactments

Local Treasury Bills Ordinance No. 8 of 1923

Registered Stock and Securities Ordinance No. 7 of 1937 ( Incorporating Amendments up to 31st December, 2004 )

Payment and Settlement Systems Act No 28 of 2005

Financial Transactions Reporting Act No. 6 of 2006

Active Liability Management Act No. 8 of 2018

In spite of having all the above legal instruments, the Sri Lankan state went bankrupt not only due to the poor political literacy and the political illiteracy of the people, but also due to the negligence of the majority of Sri Lankan educated intellectuals towards the common wellbeing. How much longer should Mother Lanka mourn until the educated intellectuals of free education wake up..?

 

 

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