ECONOMYNEXT – There has been no firm decision made to appoint a new governor to Sri Lanka’s central bank, a government minister said amid speculation that State Minister for Money and Capital Markets Nivard Cabraal may return to his old position.
“Actually that has not been finalized (atther-washayenmer sthi-rer welar ne),” Co-cabinet spokesman Minister Ramesh Pathirana told reporters. “That is all I can say about that.”
State Minister Cabraal declined comment.
Minister Pathirana was responding to questions whether Minister Cabraal had been asked by government to resign his position to take over as Governor of the central bank as reported in the media.
Cabraal was governor until the end of 2014 under President Mahinda Rajapaksa and had not indicated any interest in returning to post when the Rajapaksa returned as Prime Minister with his brother Gotabaya as President.
According to political sources there had been discussions on the possibility of appointing Minister Cabraal as Governor with a Cabinet rank.
Several countries including China and Singapore have actual ministers as central bank Governors, and Vietnam’s central bank governor also has cabinet rank.
Whoever takes over as Governor if they are hard money individuals who do not inject liquidity, monetary stability is ensured. (Colombo/Sept07/2021)