In addition, several measures were taken to enhance the accountability and transparency of the investment process with greater emphasis on improving the governance structure of fund management, including the establishment of an independent, internal department for risk management. Further, the assistance of the Asian Development Bank (ADB) and the World Bank was obtained to improve internal processes in line international best practices. As in the previous years, we have continued to provide members with the highest possible returns on their fund balances through profitable, yet prudent investments. In 2018, we will take steps to further enhance accountability, transparency and the overall performance of Fund-related activities. Strengthening the overall risk management framework for EPF-related activities will also be among the top priorities in 2018. In this context, we will make every effort to further enhance institutional capacity through continuous training and development, which would be instrumental in conducting investment and fund management activities efficaciously. Technical assistance from ADB, under the capital market development project for Sri Lanka, will also contribute significantly to our capacity development efforts. Most importantly, we will strive to take prudent measures to provide our members with the best possible returns on their provident fund balances with us. In addition, EPF is in the process of implementing the government policy decision to use the new biometric National Identity Card number as a unique identification number for EPF-related transactions.
Despite these challenges, 2017 was a year when we made significant progress on many fronts through several policy measures taken by the Central Bank in coordination with the government. In response to these measures, macroeconomic stability is being restored and our economy is trending in the right direction. The Central Bank has implemented several proactive policy measures during 2017 in order to achieve the core objectives of maintaining economic and price stability and financial system stability. Three frameworks have been put in place to improve the country’s overall macroeconomic conditions. Attention is also being paid to institutionalising them. The Central Bank is working towards implementing a Flexible Inflation Targeting (FIT) framework by 2020 to conduct monetary policy in a proactive and forward-looking manner. It has also adopted a more flexible exchange rate policy that promotes export competitiveness. The government is also committed to a revenue based fiscal consolidation programme, which intends to bring down budget deficits and debt levels progressively. If we get fiscal policy and monetary policy right, then the pressure on the exchange rate would reduce. Let me discuss these frameworks in a detailed manner. On the monetary policy framework, the Central Bank’s move towards introducing a FIT regime aims to maintain a low inflation environment on a sustained basis. The FIT framework is a data-driven, forward-looking and proactive monetary policy regime built upon three main pillars: strong fiscal policy support, effective monetary policy conduct, and strong central bank mandate and credibility.