Sri Lanka could defer re-appointment of controversial CB Governor: report

ECONOMYNEXT – Sri Lanka may defer the re-appointment of controversial central bank Governor Arjuna Mahendran until an investigation into alleged bond scams is wrapped up by a parliamentary committee, a report said.

Sri Lanka’s <i>Daily Mirror</i> newspaper quoted Saman Ratnapriya, from Heath Services Trade Union Alliance as saying the Prime Minister Ranil Wickremesinghe had agreed to a request not to immediately re-appointment the Governor when his term ends on June 30 during a meeting Saturday.

There was no immediate confirmation from government sources. Members of the ruling United National Party has insisted that the Governor should be re-appointed as no charges were proved.

There have also been false claims that the Supreme Court has ‘exonerated’ the governor, after it declined to take up a case on reforming bond auctions.

The newspaper also said that government parliamentarians are scheduled to meet the Prime Minister at his official residence and the issue may also be discussed.

There have been rising concerns over alleged bond auction rigging and insider dealing to benefit a gilt dealer owned by the son-in-law of the Governor and also dumping securities on the Employees Provident Fund, a private sector workers fund managed by the central bank.

During the last administration, there were allegations of dumping shares on the EPF, but not bonds.

Mahendran has denied wrongdoing. (Colombo/June20/2016)
 

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