Central Bank Union calls for immediate action

Jun 29, 2016 (LBO) – Sri Lanka’s Central Bank Executive Officers Union says that immediate legitimate action needs to be taken to prevent probable anarchic state that would arise at the institution from July 01, 2016.

“We write to record our discontent on the current state of depletion of public confidence in and heightened criticism of Central Bank of Sri Lanka at all levels and draw the attention of the members of the Monetary Board to possible anarchical situation that would arise on the affairs of the bank from July 01, 2016,” Central Bank Executive Officers Union said in a statement.

“If a qualified and recognized person with outstanding competence and unquestioned integrity is not appointed with effect from July 01, 2016 in conformity with the provisions of the Monetary Law Act (MLA) and intent of such provision.”

According to the Exter report the Governor should be a man of recognized and outstanding competence in and understanding of the economic and financial problems of Ceylon and of unquestioned integrity and responsibility.

The statement further says that with regard to the acting arrangement of the governor, section 8 (3) and section 24 of the MLA stipulates the following:

8(3) – “In the absence of the governor any meeting of the monetary board, the deputy governor designated as senior by the board shall act as his alternate and shall preside at the meeting and have the right to vote the threat,”

24 – “In the event of the temporary absence from duty of the governor or of the temporary inability of the governor to perform his functions and duties, the deputy governor designated as senior by the board shall act as the chief executive officer of the Central bank and shall have authority to excruciate the powers and perform the functions and duties of the governor under this act.”

It is clear that from the above sections that the senior deputy governor only in a situation where the governor appointed in terms of section 12 of MLA is temporary unable to attend to duties and functions as the chairman of the monetary board and as the CEO of the bank.

In other words if the governor position is vacant, acting arrangement for the position cannot be made, the statement stressed.

Central Bank Governor Arjuna Mahendran has informed the Monetary Board that he will not seek a re-appointment when his term ends this month until a parliamentary probe over bond sales is complete.

Meanwhile, Sri Lanka’s Parliament appointed Committee on Public Enterprises (COPE) will meet Wednesday to consider the Auditor General’s report on the bond investigation.

Parliamentarian and COPE member Dr. Nalinda Jayatissa told LBO earlier, the committee will most probably arrive at a decision on the alleged bond scam based on the findings of the Auditor General’s report.

However, analysts say that appointing Governor again or not is a decision that should be taken by the President himself.

Mahendran had become the 13th governor of the central bank. He is the second non-Sri Lankan to hold the office after John Exter, a US citizen who was the founding governor.