Sri Lanka, Aug. 21 -- The Central Bank of Sri Lanka (CBSL) has clarified recent public debates, stressing that "money printing" and the broad money supply (M2b) are two very different concepts.

According to the Bank, money printing refers specifically to the Central Bank injecting new funds into the economy, mainly by purchasing government securities. When this happens, the Bank's stock of securities rises and new liquidity is created.

In contrast, the broad money supply (M2b) is a statistical measure that reflects the total money available in the economy. It includes currency held by the public, loans granted by the banking sector to households, businesses, the government, and state-owned enterprises, as well as the foreign assets of c...