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Friday Nov 15, 2024
Tuesday, 5 July 2016 00:41 - - {{hitsCtrl.values.hits}}
The Central Bank’s new Governor Dr. Indrajit Coomaraswamy yesterday pledged to lead by example and listed three guiding principles for his staff while sending a clarion call to politicians that good economics is critical for their and country’s success.
Speaking to Central Bankers after accepting the letter of appointment from President Maithripala Sirisena, Dr. Commaraswamy for whom it was indeed a “home coming” of sorts, gave three thoughts on what Central Bankers in his view should be imbued with “One is clearly integrity; two is technical excellence and three is professionalism.”
He said that he would like those three concepts to be the guiding principles “for all of us, as we go forward.”
“And if any of you think that I am not living up to those principles, please find your way to getting that message to the 15th floor that I personally am not living up to those three principles,” the 14th Governor told Central Bankers.
President Maithripala Sirisena chats with new Central Bank Governor Dr. Indrajit Coomaraswamy (centre) after handing over the letter of appointment whilst Deputy Governor Dr. Nandalal Weerasinghe is also present
He said that such a course was important in terms of leadership. “I need to be able to set an example and I’m going to do my best to do so. And if there are any short comings as I said, I would like to hear them.”
Dr. Coomraswamy, who served the Central Bank from 1973 to 1989 in the Economic Research, Statistics and Bank Supervision Divisions as a staff officer, said he wants to encourage a culture of discussion, of debate, of openness, and encouraged staff to help him do so.
“It should never be personal, if somebody has a different opinion. We need to put our heads together. We will have different views, we need to throw it out in the open, discuss and then eventually find the best way forward.”
Focusing on the macro situation, the veteran economist who had worked at the Commonwealth from 1990-2008 including as Director, Economic Affairs Division and Deputy-Director, Secretary-General’s Office, said there is always concern about the balance between politics and economics.
“In my view for much of our post-independent years; I’m not putting on one party or the other or one Government or the other, but if you look back from 1948, for most of the time politics has trumped economics. It is our job to convince our politicians that good economics is good politics,” Coomraswamy emphasised.
As the Central Bank, he pointed out, “we need to get away from this cycle of ‘stop go policies’ of creating artificial booms through misaligned policies. We need to set a good framework for the economy.”
However the new Central Bank Chief reminded his staff that Sri Lanka has a representative democracy. “People elected by the people — the Government — of course have sovereignty reposed in them.” “However, the Monetary Law Act sets about some very specific responsibilities for the Central Bank and it is up to us to fulfil those responsibilities in a very technocratic, objective and free way. That is not to say we should be criticising the Government of the day; that’s not our business. But there are channels through which we can get independent advice to the Government,” he emphasised.
Coomaraswamy said that he was very keen and that he has spoken to President and Prime Minister too about this that the Central Bank does its work independently and in a technical way and discreetly advises the Government about the best way forward for those segments of policy and practice for which the Central Bank has responsibility.
He also said that: “When I met President he just told me one thing. He said: ‘Do your work in a straight way and do not fear anybody in discharging your duties.’ Now my intention is to follow his direction and to carry out my functions according to his wishes.
“When I met Prime Minister he laid out his vision of where he wants to take this country and there is a big role for the Central Bank. And in many ways, if we are not able to fulfil our functions in the way it should be fulfilled, in terms of creating a platform for macroeconomic stability with strong macroeconomic fundamentals, having financial sector stability so, there is confidence right through the system — nothing else is possible.
That is the first step to get strong macroeconomic fundamentals, to have the financial sector which is the lifeblood of the country stable and people within the country and outside confident in it. So that’s our responsibility.
As I said, I genuinely believe nothing else will really take off unless we are able to do our job or fulfil our functions well. So, we have a big responsibility and I look to all of you, for your assistance and cooperation in doing this.”
