Appointment of CBSL Governor should not be politicized says good governance activist



K.C. Vignarajah

By Hiran H.Senewiratne

 "The Governor of the Central Bank of Sri Lanka functions as its chief executive officer. This is one of the most important positions in the country because the Central Bank is charged with ensuring economic and price stability besides financial system stability, while providing prudential and pro-active policy recommendations as a principal advisory arm of the government on economic affairs, top good governance activist K.C Vignarajah told The Island Financial Review in an exclusive interview yesterday.

His comments came amid criticisms from local knowledgeable sections that the process of appointing the CBSL Governor has been politicized over the past few years. These sections hold the view that the Governor should discharge his functions independently, knowledgeably and impartially.

Vignarajah said that the CBSL should function with the highest degree of integrity and professionalism, earning the respect of the public for its objectivity in doing so. "But, unfortunately, this post was highly politicized during the last regime when then President Mahinda Rajapaksa appointed Nivard Cabraal to the post, he said.

Vignarajah explained that the normal procedure is for the President to appoint the most senior person in the Central Bank to the post of Governor. "But there could be an exception to this procedure and the President could appoint a total outsider to this post if the person concerned is of outstanding capability and noted for his or her integrity, competence and impartiality, he said.

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