{"id":76557,"date":"2022-03-16T01:11:25","date_gmt":"2022-03-16T05:11:25","guid":{"rendered":"http:\/\/dbsjeyaraj.com\/dbsj\/?p=76557"},"modified":"2022-03-16T22:08:20","modified_gmt":"2022-03-17T02:08:20","slug":"a-new-central-bank-governor-who-would-pursue-policies-favourable-to-both-the-interntionl-monetry-fund-imf-and-finance-minister-basil-rajapaksa-is-likely-to-be-appointed-soon-in-place-of-present","status":"publish","type":"post","link":"https:\/\/dbsjeyaraj.com\/dbsj\/?p=76557","title":{"rendered":"A new Central Bank Governor who would pursue policies favourable to both the Interntionl Monetry Fund (IMF and Finance Minister Basil Rajapaksa is likely to be appointed soon in Place of Present Governor Ajith Nivard Cabraal"},"content":{"rendered":"

By Ishara Gamage<\/strong><\/p>\n

Economic and political experts point out that the contradictory views and opinions that have emerged between the Central Bank of Sri Lanka (CBSL) and the Ministry of Finance (MoF) regarding the nation\u2019s macroeconomic management will soon lead to a change in the CBSL Governor Ajith Nivard Cabraal and the composition of the Monetary Board. <\/p>\n

In this respect, the Governor of late appeared to be reluctantly compelled to deny publicly that the relations between the Minister and himself had derailed and deteriorated.<\/p>\n

More to the point, India, which in recent days had provided tangible financial assistance to stave off bankruptcy via the deferment of Asian Clearing Union (ACU) payment and providing medium term loan-assistance, wanted a proper long-term plan to consider incremental finance implying clearly that the so-called Road Map put up by CBSL was inadequate and did not cut the mustard. <\/p>\n

<\/p>\n

Giving credence to such an outcome, it was learnt the MoF had recently taken steps to establish relations with the Embassy of SL in Washington and the International Monetary Fund (IMF) without the involvement of CBSL.
\nAs Finance Today exclusively reported on 10 March, the Head of the Asia-Pacific Dept. of the IMF, Dr. C. Rhee, is currently in SL to brief its Article IV observation to the Government.<\/p>\n

Critics say if the Government decides to work with the IMF to implement a BoP assistance programme, it would be difficult for Governor Cabraal, who appears to be extremely opposed to any IMF involvement, to remain in office. This may also give rise to changes to other related official positions as witnessed at the initiation of several recent IMF engagements at other Central Banks and Ministries.<\/p>\n

Therefore, they point out that a new CBSL Governor who would pursue policies favourable to both IMF and Finance Minister Basil Rajapaksa is likely to be appointed.<\/p>\n

It is said, this has been brought to the notice of the government backbenchers as well.<\/p>\n

However, the establishment of an independent Central Bank will be a must if SL intends to enter into any potential agreement with IMF.<\/p>\n

The term of office of the Governor, CBSL is six years and the current Governor is fulfilling the remaining period of former governor Dr Indrajit Coomarswamy. Dr. Indrajit Coomaraswamy assumed duties in July 2016, and retired in December 2019. On 24 December 2019, President Gotabaya Rajapaksa appointed Professor W. D. Lakshman as the 15th Governor who served until September 2021.<\/p>\n

Accordingly, the six-year term of CBSL Governor including that of former Governor Dr Indrajit Coomarswami is due to expire this June. However, the President has the option of extending current Governor\u2019s term for another six years.<\/p>\n

Courtesy:Ceylon Today<\/em><\/p>\n

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By Ishara Gamage Economic and political experts point out that the contradictory views and opinions that have emerged between the Central Bank of Sri Lanka (CBSL) and the Ministry of Finance (MoF) regarding the nation\u2019s macroeconomic management will soon lead to a change in the CBSL Governor Ajith Nivard Cabraal and the composition of the …<\/p>\n

Continue reading ‘A new Central Bank Governor who would pursue policies favourable to both the Interntionl Monetry Fund (IMF and Finance Minister Basil Rajapaksa is likely to be appointed soon in Place of Present Governor Ajith Nivard Cabraal’ »<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[12],"tags":[],"_links":{"self":[{"href":"https:\/\/dbsjeyaraj.com\/dbsj\/index.php?rest_route=\/wp\/v2\/posts\/76557"}],"collection":[{"href":"https:\/\/dbsjeyaraj.com\/dbsj\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dbsjeyaraj.com\/dbsj\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dbsjeyaraj.com\/dbsj\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dbsjeyaraj.com\/dbsj\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=76557"}],"version-history":[{"count":1,"href":"https:\/\/dbsjeyaraj.com\/dbsj\/index.php?rest_route=\/wp\/v2\/posts\/76557\/revisions"}],"predecessor-version":[{"id":76558,"href":"https:\/\/dbsjeyaraj.com\/dbsj\/index.php?rest_route=\/wp\/v2\/posts\/76557\/revisions\/76558"}],"wp:attachment":[{"href":"https:\/\/dbsjeyaraj.com\/dbsj\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=76557"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dbsjeyaraj.com\/dbsj\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=76557"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dbsjeyaraj.com\/dbsj\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=76557"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}