Communication Policy of Central Banks: The Case of Sri Lanka
Director of Economic Research Department of the Central Bank of Sri Lanka, LK
Dr. H. N. Thenuwara is the Director of Economic Research Department of the Central Bank of Sri Lanka. He has received a B.Sc. Degree in Pure Maths, Physics and Industrial Management from the University of Kelaniya, Sri Lanka, an M.Sc. Degree in Applied Statistics from the University of Colombo, Sri Lanka, an M.A. Degree in Econometrics from the University of Manchester, UK, and a Ph.D. Degree from the University of Iowa, USA. His research interests are in Economic Theory, Monetary Policy, Economic Growth, International Finance, International Trade Policy and Real Sector Developments leading to economic growth.
Communication policies are important for central banks for two reasons. First, being public institutions it is important to disclose their actions to the general public for maintaining democratic accountability that comes with independence. Second, the policy effectiveness is enhanced if the general public is aware of policies of central banks, and reasons. Realising this, the Central Bank of Sri Lanka is in the process of developing a comprehensive communication policy to portray its accountability and to allow economic agents to make informed judgements about performance of the economy and Central Bank policies. However, there are several issues to be addressed in Sri Lanka before any communication policy takes its intended full effect. (JEL D83, E58)