Sri Lanka activist seeks removal of Central Bank member: report

Aug 10, 2008 (LBO) – An activist who went to court against a privatization deal has sought the removal of a member of the rate setting committee of Sri Lanka’s central bank who was faulted in a court ruling, a media report said. The Sunday Island newspaper said lawyers to left-leaning politician Vasudeva Nanayakkara had written to the Central Bank asking it to remove Treasury Secretary P B Jayasundera from the monetary authority.

By virtue of his office, Sri Lanka’s treasury secretary is automatically a member of the monetary board, which is the governing body of the island’s central bank.

The Sunday Island newspaper quoted Nanayakkara as saying that he was awaiting a response from the central bank.

Nanayakkara says anyone faulted by a court of law cannot remain on the monetary board.

Central Bank Governor Nivard Cabraal had declined to comment, the newspaper said.

Jayasundera was faulted by Sri Lanka’s Supreme Court over the sale of a state-run bunkering firm to Sri Lanka’s John Keells Holdings where court found fault with how a tax break and land was given to the firm.

Jayasundera was ordered to pay 500,000 rupees to the state over the issue.

Jayasundera has tendered his resignation