  Policies will be adopted to reduce cheque usage in Sri Lanka by means of converting to digital payment mechanisms/method. The Central Bank will facilitate and promote private and government institutions to effect payments through any electronic retail payment system.   As Blockchain technology plays an important role to change the entire current financial transaction infrastructure within a digital eco system, the integration of distributed ledger systems into financial institutions and services will be facilitated in line with the regulations in the country.   With the increasing global popularity of digital currencies, the Central Bank intends to carry out a study in order to determine the effects of a digital fiat currency on the current economic landscape of the country.   The Central Bank aims to use a bottom-up approach in creating awareness from grassroot to institutional levels on the available and proposed payment modalities on a continuous basis.   In order to facilitate new developments of payment cards and mobile payments, the Central Bank intends to issue a revised Credit Card Guideline and guidelines on Minimum Compliance Standards for Mobile Applications that will be applicable to any institutions operating, facilitating and proving payment services for mobile applications. With a view to strengthening the financial intelligence environment, we will continue to coordinate with the stakeholders to develop Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) policies to implement the Financial Action Task Force (FATF) recommendations more effectively.
We have also advanced in a technological leveling project and we have implemented three-year periods for strategic planning. I am also proud to have presided over the Central Bank during a period where the average annual inflation rate was 2.8%, and was most of the time within the established tolerance range and where the functioning of internal and external payments was totally normal. These are the objectives set forth by our Constitutional Organic Law. Unfortunately, the unusual increases in the prices of foods and energy pushed annual inflation above 7% toward this year’s end. This should be a transitory rise in inflation that will fade away in coming quarters, conditional to annual inflation expectations remain anchored around 3%. It is not pleasant to leave the Central Bank with such a high inflation figure. But I understand that it is a circumstantial development that is part of the job, and that the highly qualified Board and staff will take the appropriate decisions to achieve the objective to return inflation to 3% within the habitual policy horizon. We have applied an effective monetary policy that has become a powerful countercyclical tool, in light of the experience of recent years. But it would be of little use if we did not rely on the responsible fiscal policy that Chile has applied. 2  BIS Review 149/2007  During my term, I was lucky to work with two top-level finance ministers, with whom I always had very fluent communication in the subjects of common concern.