Sri Lanka's Central Bank, the CBSL, wields monetary policy as its key tool for economic stability. This involves meticulously managing the supply of money circulating in the economy and setting interest rates. By adjusting these levers, the CBSL influences borrowing and spending, ultimately impacting economic activity and inflation. Their aim is to achieve price stability, keeping inflation within a desired range. This delicate balancing act ensures controlled growth without the disruption of runaway inflation. However, external factors and the need to foster economic expansion can complicate this process. Nevertheless, the CBSL's monetary policy plays a crucial role in steering Sri Lanka's economic well-being.