The newly installed governor of the Central Bank of Sri Lanka says improving the transmission of monetary policy will be a priority for 2020.

W D Lakshman, who took office on December 24, used his first major speech as governor to call for an overhaul of the monetary transmission mechanism.

The CBSL cut rates in 2019, but pass-through to banks’ lending rates was limited. In the end, the central bank imposed caps on banks’ lending rates, which succeeding in curbing interest rates.

“The central