28 September 2024 12:12 am Views - 73
By Nuzla Rizkiya
Following the election of President Anura Dissanayake and the formation of the new government under the National People’s Power (NPP), Central Bank Governor Dr. Nandalal Weerasinghe yesterday addressed the growing speculation regarding his potential replacement.
At the Monetary Policy Review held at the Central Bank yesterday, Dr. Weerasinghe was asked about Sri Lanka’s longstanding practice of replacing the Central Bank governors during regime changes, a pattern seen in the years 2005, 2015 and 2019.
“I wouldn’t necessarily call it a tradition but this practice might have been fuelled by the decisions of will of the previous administrations and the boards of finance. In my view, there is no good reason to change the independently appointed governors and board members whenever a regime changes. It definitely should not be a tradition,” Dr. Weerasinghe stated.
He went on to note that under the newly enacted Central Bank Act of 2023, the governors of the Central Bank are appointed for a specific six-year term, in an effort to provide a structured approach to the leadership of the Central Bank.
When inquired whether he would continue in his role, his response signalled his intention to continue contributing, which he deemed had no reason for replacement based solely on political changes.
“Under the Central Bank Act, the governors are now appointed for a specific six-year term. We have a responsibility to contribute to the fullest of our capabilities under the law for the entire term,” Dr. Weerasinghe stated.
Under CBSL Act No. 16 of 2023, which supersedes Monetary Law Act of 1949, the Central Bank of Sri Lanka is granted full autonomy and accountability.
The law makes the Central Bank responsible for managing the country’s monetary policy, financial stability and payment systems.
The governors and appointed members of the Central Bank are mandated to serve six-year terms. Their appointments are initially recommended by the Finance Ministry, followed by a formal appointment by the president, after receiving the approval from the Constitutional Council.