May 13, 2016 (LBO) - In response to an article published in a media outlet written by an anonymous writer titled ‘What is expected of Central Bank Governor?’ Central Bank Governor Arjuna Mahendran has replied that there were factual inaccuracies in the article. "The writer has sought to compare my conduct with that of a former Governor. No mention is made of the billions of rupees lost to the Central Bank and the Government through controversial dealings of that Governor such as the oil hedging issue, the Greek bonds issue and the purchase of gold into the Sri Lanka Government reserves at very high prices." "Meanwhile, I wish to state for the record that the assertion that I have been associated with auctions of Government bonds that have not been fully investigated is not accurate. The issue of the bond issue of 29 February 2015 was taken up by the Supreme Court on 13 May 2015 (SC FR No 107/2015) and all charges against me and other dependents were dropped.
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Mahendran then says that the allegation that State funds were used for his personal attire is factually incorrect. "Carrying such statements without ascertaining the facts are grounds for libel and I would be grateful if you could make this correction," he writes.
"Your writer, regrettably, keeps leveling unsubstantiated accusations against me. On the question of the issue of Government bonds in 2016, the Monetary Board of Sri Lanka has investigated the issue surrounding recent bond auctions and will publish its findings shortly."
Media articles should stick to professional comments about his work such as recent reforms to implement a market-determined system for the determination of interest rates and exchange rates in Sri Lanka, and not his attire, he adds in the response.
"Other issues such as the sartorial preference of Governors etc. should be incidental and only be given serious consideration if there is factual evidence to support any allegations of any misdemeanour.