Governor takes high road on detractors

Thursday, 9 February 2017 00:10 - - {{hitsCtrl.values.hits}}

Central Bank Governor Dr. Indrajit Coomaraswamy yesterday refused to respond to his detractors, including Finance Minister Ravi Karunanayake and his predecessor, but defended the officials of his institution insisting that they were professionals with integrity.

Faced with numerous queries on statements made by Finance Minister Karunanayake on the functions of the Central Bank including exchange rate management and tender processes, the Governor insisted that each committee of the relevant departments were manned by professionals who were dedicated to carrying out their tasks in a professional manner.

“We don’t always get it right but we do our best to do the job professionally.”

However, he supported Government moves to remove the external debt department from under the Central Bank, pointing out that it was common practice around the world to have it function under the Finance Ministry or as an independent institution.

“There is an inherent contradiction here. The Central Bank is tasked with managing interest rates but also has to raise money for Government debt. This is why the external debt management department is usually kept under the Finance Ministry in many other countries.”

Dealing with cross questions of credibility and accountability if the department is removed to the Finance Ministry, the Governor insisted that the Central Bank would work closely with the ministry to establish adequate checks and balances and install a proper management capacity to enable its competent function.

Dr. Coomaraswamy also took the high road regarding allegations made by former Governor Arjuna Mahendran, who remains under a cloud for his purported involvement in the controversial bond scam.

“I do not wish to comment….A sitting Governor should not comment on issues pertaining to a former office holder. That is not done.”

He also had succinct responses of refusal to questions raised about an audit report released by the JVP on Rs. 6.6 million allegedly spent by Mahendran on personal expenses during his tenure at the Central Bank and refused to be drawn out.

Dr. Coomaraswamy was also reluctant to respond to questions as the audit report was leaked from the Central Bank and noted that such leaks affected the systems and processes followed by the Central Bank.