This is the first John Exter Memorial Oration delivered by the Author in 2007 in the Central Bank of Sri Lanka on the occasion of the naming of the Bank's International Conference Hall after John Exter, the founding Governor of the Central Bank. In this lecture, the author has argued that the principles of central banking which John Exter expounded in late 1940s are still valid and guiding for the central bankers in conducting their business prudently.