I would also like to acknowledge the unstinted service rendered by former Deputy Governors, Mr. P Samarasiri and Mr. S Lankatillake, who retired from the Bank service in 2017. Finally, I would also like to express my sincere gratitude to the Assistant Governors, Senior Heads and Heads of Departments, particularly the Director of Economic Research and the Staff of the Economic Research Department for their effort in compiling this policy document. A special word of gratitude to my colleagues in the Governor’s Secretariat who have had to put up with me on a day-to-day basis. In fact, I thank all Staff of the Central Bank who are dedicated to fulfilling the objectives of the Central Bank and maintain their professionalism, technical excellence and integrity for the betterment of the country. However, it has been revealed that a tiny minority of the Central Bank staff have not lived up to the very high standards that are expected in this iconic institution. In such instances, firm action has been taken to stamp out such wrongdoing in the future. Thank you and I wish you all a Happy and Prosperous New Year 2018. 33
Their technical recommendations, free of short-term political pressures or 7/9  vested interests, may provide valuable guidance for other economic policies. Although this function is not always formally incorporated into the legal framework, in the case of the Banco de España this role is recognised in our Law of Autonomy. Indeed, this legislation establishes a function to “advise the government”, which supports our role in evaluating other public policies. This is also the case of the European Central Bank, on which the Treaty confers an advisory function with regard to proposals for European Union and Member States’ legislation within its fields of competence. 5. The key importance of transparency and accountability The fifth and final reflection concerns highlighting the importance of pursuing the highest standards of accountability and transparency vis-à-vis both society and the political representatives. Indeed, accountability and transparency support both the effectiveness and also the legitimacy of central bank independence. We need to keep in mind that monetary policy is now more complex and society is constantly raising the bar for these standards. The adoption of unconventional tools marked a shift away from the “one goal, one instrument” policy setting in which accountability was easier. More instruments at play might have also raised concerns about the possibility that central banks have stepped beyond their mandates, thus potentially endangering the public perception about the value of their independence.