The appointment of Ajith Nivard Cabraal as the new Governor of the Central Bank of Sri Lanka has been strongly opposed by the Opposition.
In a statement, Leader of the Opposition Sajith Premadasa said that giving the post of Governor of the Central Bank to a person with a dark history would inevitably undermine the confidence of international investors in Sri Lanka.
“Let’s free the Central Bank from politicization!”; the statement, signed by Leader of the Opposition Sajith Premadasa on Tuesday (September 14), states that the Central Bank’s primary mission is to implement monetary policy, to be the pioneer of the banking system and to play a pivotal role in the overall financial process.
Therefore, it is imperative to keep the Central Bank separate from political influence in making policy decisions regarding fiscal reserves, Sajith Premadasa said.
“Experience around the world has shown that in every country where an independent Central Bank operates, it has produced better economic results for its citizens.” The Leader of the Opposition pointed out that throughout the history of some countries, Central Banks have formulated irresponsible and inefficient monetary policies, which have enabled them to fill the pockets of their cronies instead of citizens.
“Countries like Argentina, Hungary and Zimbabwe are good examples of this. “The same thing is happening in Sri Lanka and the credibility of the Central Bank of Sri Lanka is being severely eroded,” he added.
Ajith Nivard Cabraal, who has been appointed by the President as the Governor of the Central Bank of Sri Lanka, is a former Member of Parliament for the People’s Front as well as the former Minister of State for Finance. The announcement said that, only this reason is sufficient enough for the Governor of the Central Bank should not be appointed to the post based on international standards.
The government announced yesterday that President Gotabhaya Rajapaksa has appointed Ajith Nivard Cabraal as the new Governor of the Central Bank with effect from today (15).
A dark history
Sajith Premadasa has said that during Ajith Nivard Cabraal’s tenure as the Governor of the Central Bank, many allegations such as the hedging deal for the CPC, which lost millions of dollars to the Ceylon Petroleum Corporation, and the Greek bond issue that caused the country to lose millions of dollars, have added serious black marks Accuses.
He was accused of misusing Employees’ provident funds and the Employees’ Trust Fund during his tenure. “Everything that happened during his tenure as the Governor of the Central Bank is mentioned in the COPE report.” Sajith Primadasa has stated in his statement that the 2019 bond war report has revealed conflicts between Cabraal’s interests.
The Leader of the Opposition further stated that the then Governor Ajith Cabraal and other Central Banks have been charged with illegal transactions worth over US $ 6.5 million with Zuberi, an American who is currently serving a 12 year sentence in the United States.
The Opposition has strongly objected to the re-appointment of a person with a serious breach of credibility and a dark past as the Governor of the Central Bank, the country’s chief financial officer, saying that it would be a betrayal of the entire people of the country.
