Cabraal says CB governorship a crown of thorns he wears happily and ready for challenge

• Says his first priority will be to strike a balance in economy by using tools available to him
• Says after analysing consequences fully, some tough decisions may have to be taken in near future 
• New policy package by way of a short-term road map is to be unveiled on Oct. 1

While he knows that the governorship of the Central Bank at this juncture is a crown of thorns, he is ready to wear it with much happiness as challenges excite him, according to Ajith Nivard Cabraal, who assumed duties as the Central Bank’s 16th Governor, yesterday. 

Cabraal previously served as the 12th Governor of the Central Bank from 2006, until early 2015. He said despite his continuous refusal, President Gotabaya Rajapaksa requested him to lead the Central Bank once again to assist the country’s economy out of the woods.

To accept the Central Bank Governor role, Cabraal in the early part of this week resigned from Parliament as a National List MP. He was also Money and Capital Market and State Enterprise Reforms State Minister, from which he resigned too. 

In his first speech as Governor addressing the Central Bank staff and media yesterday, Cabraal said his first priority would be to strike a “fine balance” in the economy by using the right tools available to
him as Governor.

“This isn’t an easy process. It’s going to be a very difficult one. But I’m sure with the quality of the talent 
“within the Central Bank, we will be able to achieve it,”
 he said.

After fully appraising their consequences, the Central Bank may have to take some tough decisions in the future to bring the country’s economy back on track, he added.

“We need to lead the economy. The Central Bank is created to provide that leadership to the economy. We will have to think several steps ahead always. We would take the lead in providing guidance to the economy and markets, “Cabraal averred.  

He also stressed the need to bring in some discipline to the economy in earnest and providing a roadmap to all the stakeholders. 

“In the next few days, we will be talking to all stakeholders,” he said.

While claiming that the Central Bank is there to come up with solutions and not to state the problems, Cabraal said the Monetary Board under his leadership would seek the guidance of the local experts within the walls of the Central Bank and outside, who understand Sri Lanka’s economic problems better than a multilateral agency such as the International Monetary Fund. 

When queried by reporters as to when the Central Bank would come up with a new roadmap for the economy under his leadership, Cabraal said he expects it to be unveiled on October 1. 

He also said his request to President Rajapaksa to grant the Central Bank Governor powers on par with a Cabinet Minister, is taken up favourably.

“I’m not asking this for myself. I’m asking this for all the Governors who will come after me. To provide the necessary leadership to the country’s economy, certain decision-making powers needed to be vested with the Central Bank Governor,” he remarked.