Cabraal will be fully vindicated soon

Dear Editor,

During the past few months, I have observed criticism, mainly by the Opposition Parliamentarians, about the manner in which the Sri Lankan economy has been managed. In my view, their attempts seem to be designed to impose blame on the Governor, Central Bank, perhaps to weaken his resolve and strength and discourage him.

However, we have to remember that it was due to Nivard Cabraal’s uncanny ability, far-reaching and wise decisions and practical management of the economy that this country has been able to avert a serious banking crisis, while continuing with the massive war effort.

He has also been able to guide the economy through many global crises, including the global financial meltdown and the oil crisis, to reach the level it has reached today. In fact, we are today witnessing a massive growth momentum, low inflation and robust investor sentiments - conditions that never existed together, in the past. Further, whatever anyone may say, our people’s lifestyles have improved tremendously and their economic capacities have expanded significantly.

Even in the recent context of the Central Bank’s interventions regarding the trade deficit, I think the timing of the Central Bank’s policy actions have been near perfect, in that the new policy measures have been introduced immediately after the country has been able to record a massive growth, so that on that positive platform, corrective measures have been taken to adjust the imbalances in the trade account and the exchange rate.

I am also happy that the Treasury Secretary is now seeing eye-to-eye with the Governor, and has endorsed the Governor’s position, by commenting that the State should intervene in the event any imperfections persist due to speculation or otherwise.  As a retired Banker, that is why I am very confident that Cabraal will be fully vindicated in the near future, when the macro fundamentals stabilise soon and the growth momentum picks up to the over 8% levels, once again.   

Finally, I must say that I was pleased to see the glowing compliment paid to Cabraal by W.A. Wijewardena, former Deputy Governor, who has stated in his column in the Daily FT on 30 April that the Governor of the Central Bank is a person for whom Wijewardena has the greatest respect as “a manager par-excellence, an unparalleled trouble-shooter and a quick learner of complex subjects”.

When even one of Cabraal’s usual critics acknowledges, perhaps reluctantly, about such talents and abilities of the Governor, I think it is time for vociferous political elements in the Opposition to respect the Governor’s views and provide support to him in today’s highly complex global economic environment.

P. Somasunderam

Retired Banker

Kotahena

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