Eran lashes out at Cabraal’s imminent appointment as Central Bank Governor

• Says such appointment is totally unacceptable due to conflict of interest
• Also says even if Cabraal resigns from Parliament there needs to be cooling off period 

While claiming the upcoming appointment of the current State Minister Ajith Nivard Cabraal as the Central Bank (CB) Governor as “totally unacceptable,” former State Minister of Finance and Opposition MP Eran Wickramaratne voiced grave concerns on Cabraal’s return to the CB on multiple grounds, which could potentially damage the image and credibility of the CB as an independent institution among bankers, commercial banks, international agencies and  rating agencies.

“Former Governor of the Central Bank is a politician more over a minister in the present government. It is very clear if you are a politician or a minister you cannot be appointed to become the Governor of the Central Bank,” Wickramaratne said holding a press conference at his political office 
in Kirullapone.

“Usually a very experienced official from the bank can aspire to be appointed. If an outsider, he should have the economic and monitory economic backgrounds. Some might hide behind and think by resigning from the ministerial post to become the Governor of the CBSL.

It cannot be done as there is a conflict of interest. That is impossible to do. There has to be a cooling of period before such an appointment is made,” he added.

MP Wickramaratne also stressed on the importance of maintaining the independence of the CB in order achieve its primary responsibilities, which include the stability of the financial system, and the stability of price levels, that allow keeping inflation under check. 

Under the Monetary Law Act, it is prohibited to appoint public officials including MPs to the CB Governor post while in the office.

Last week, State Minister Cabraal announced that he would resign from parliament to take up the post of CB Governor on the invitation of President Gotabya Rajapaksa. Incumbent Governor Prof. W. D. Lakshman announced his resignation last Friday. Meanwhile, Wickramaratne  asserted  that alleged  questionable dealings during Cabraal‘s previous term as CB Governor including alleged discrepancies in treasury securities issuance, and an alleged unauthorised payment of US$ 6.5 million to a lobbyist in the United States make him further unsuitable to hold the post until he’s cleared from such allegations.  However, Wickramaratne remained optimistic that the government would reach the right decision by prioritising the country at a time when the country is faced with a foreign exchange liquidity crisis.