The founder governor of the Central Bank of Sri Lanka was John Exter, while the minister of finance at the time was J. R. Jayewardene.

Under the former name of Central Bank of Ceylon, it replaced the Currency Board that until then had been responsible for issuing the country's money.

The bank's main tasks are the conduct of monetary policy in Sri Lanka and also has wide supervisory powers over the financial system.

In addition, the CBSL is the advisor on economic affairs as well as the banker to the Government of Sri Lanka (GOSL).

The Economic Research and Bank Supervision Departments were explicitly set up under the original legislation establishing the CBSL, with certain statutory functions.