CBSL’s new Governor outlines Bank’s prime aims in address to staff
Posted on July 5th, 2016

By Hiran H.Senewiratne Courtesy The Island

The new Governor of the Central Bank Dr. Indrajit Coomaraswamy said that the primary objectives of the Bank will be to ensure macro-economic and local financial stability.

“During Sri Lanka’s post-independence history, politics have interfered in economics. The Central Bank needs to convince politicians that good economics is good politics and find a way to give the correct advice to the government to steer the country forward, Coomaraswamy said while making his maiden address to the Bank’s staff after taking office as Central Bank Governor, at the CBSL head office in Colombo.

According to some of those who were present on the occasion, the Governor revealed that the President had advised him to take ‘straightforward decisions with no fear. Furthermore, the Prime Minister had informed him about the need to have in mind the vision for the country’s future.

Coomaraswamy recalled that the Central Bank had ‘an awesome reputation’ in the 1970s, when he first joined it. He asked the staff to work with him as a team to build the reputation and credibility of the Bank.

Joining the Central Bank of Sri Lanka in 1973, Coomaraswamy served in the Economic Research, Statistics and Bank Supervision Divisions, as a staff officer until 1989. From 1981 to 1989 he was also seconded to the Ministry of Finance and Planning.

Thereafter, he worked for the Commonwealth Secretariat from 1990-2008, holding the posts of Director, Economic Affairs Division and Deputy-Director, Secretary-General’s Office. He was brought back subsequently to the Commonwealth Secretariat to head the Social Transformation Programme Division, as Interim Director.

5 Responses to “CBSL’s new Governor outlines Bank’s prime aims in address to staff”

  1. NeelaMahaYoda Says:

    Hey!, What is this guy talking about?

    He says “During Sri Lanka’s post-independence history, politics have interfered in economics..

    Does he know that It is the responsibility of the government, not the central bank, to formulate the direction of the country’s economic policy and working to achieve strong and sustainable economic growth.

    It is the Government economic policy, measures by which a government attempts to influence the economy. The national budget generally reflects the economic policyof a government, and it is partly through the budget that the government exercises its three principal methods of establishing control: the allocative function, the stabilization function, and the distributive function.

    Over time, there have been considerable changes in emphasis on these different economic functions of the budget. In the 19th century, government finance was primarily concerned with the allocative function. The job of government was to raise revenue as cheaply and efficiently as possible to perform the limited tasks that it could do better than the private sector. As the 20th century began, the distribution function acquired increased significance. Social welfare benefits became important, and many countries introduced graduated tax systems. In the later interwar period, and more especially in the 1950s and ’60s, stabilization was central, although equity was also a major concern in the design of tax systems.

    In the 1970s and ’80s, however, the pendulum swung back. Once more, allocative issues came to the fore, and stabilization and distribution became less significant in government finance.

    No wonder, he got his PhD at University of Sussex, a public research university situated in Falmer, near Brighton in Sussex.. This University is ranked 62nd in Europe and 140th in the world by the Times Higher Education World University Rankings 2015–16.

  2. aloy Says:

    This guy also knows that GOSL is run by jokers. He too will go in the direction of the wind getting as much as possible just like his predecessor. Having come to power with the promise of jailing the thieves MS is now playing all sorts of jokes. People thought that he is the safe pair of hands to give power. His name will be written in our history books as a joker.

    During MR’s time Nivard Cabral was going around the world and doing things like canvassing for support for commonwealth games etc. That was his job. The actual central banker was Basil. He found money for the elections and for themselves. Now the actual policy maker and central banker has been replaced by Malik. That is the only difference. These international racketeers will eventually sell the country to India. All patriotic forces should join together and prevent this happening.

  3. Ananda-USA Says:

    NMY,

    You are quite correct …. Sri Lanka’s economic policy, is determined by its elected government responding to the people it serves, and not by the Central Bank which is supposed to follow the wishes of the elected govt.

    SInce Sri Lanka regained it’s sovereignty, the economic policies have changed from time to time. The first capitalist leaning govt under DS and the eatly UNP continued to serve the educated elite while the second socialist leaning govt under SWRD reorientation the priorities towards serving the masses and giving them the education and other benefits previously enjoyed only by the elite. After over a decade of soli Alistair governance, the next UNP Govt under JR reversed course and reorientation the economy towards a free market system.

    In more recent times, successive govts have recognized the achievements of both forms of economic policy and have held fast to giving priority to meeting the needs of the masses while preserving the benefits of a free market.

    This has yielded a middle-path economic policy uniquely well suited to the sensibilities, and in fact determined by, the mindset of the Sinhala Buddhist majority population of Sri Lanka. It has yielded all the socio-economic advantages often lauded by even the most jaded of Sri Lanka’s foreign adversaries who assail us on international fora.

    If it were not for the 30-year conflict inflicted on Sri Lanka, Sri Lanka would have become the Wonder of Asia decades ago. It is to PREVENT that status being achieved and Sri Lanka finally escaping it from the clutches of foreign forces, that a REGIME CHANGE OPERATION was implemented in Sri Lanka on January 8, 2015 to keep Sri Lanka forever enslaved to a foreign yoke.

    We the Patriots of Mother Lanka fully recognize the designs and intent of our foreign foes and their domestic puppets, and will soon confound them by regaining control of our Motherland! We will NEVER YIELD!

  4. Dilrook Says:

    I agree with NeelaMahaYoda.

    The other side of this is the growing clash between Sirisena and the UNP. Everybody knows UNP stuffed up the central bank and wanted to save Mahendran at all cost. On the other hand, the SLFP (Sirisena’s party) appealed to him to get rid of the former governor. In the battle, SLFP won and UNP lost.

    Now it is the second round and the SLFP opened by kicking another goal. This person was appointed by Sirisena rejecting UNP proposals. First Sirisena neutralised UNP proposals by his own proposals (who are more suited). Then they came to a compromise to appoint someone totally alien.

    The new governor said the president himself told him to reign in the economy without fear. Do the right thing irrespective of political pressure. This means do what the president wants disregarding the UNP.

    He also criticised UNP’s welfare budget in his first interview.

    This proves my previous assertion that Sirisena is in charge of the UNP government and not the other way round. As cunning as he is, he pretends he knows nothing of VAT, FCID, etc. but he is behind all these. UNP should be happy when the Joint Opposition is doing well as that splits the SLFP. However, strangely, after every major Joint Opposition show of force, JO leaders get a call from FCID, etc. It is all Sirisena’s doing to keep his SLFP intact.

    This will worsen clashes with the UNP. Economic policy formulated by the UNP government will be dumped in the rubbish bin by the central bank. Election sweeteners will be disrupted by the central bank. Frauds alleged on the former governor will be difficult to do again as the finance minister, prime minister and economic advisors are on one side and central bank governor on the other. The “ela haraka-mee haraka” analogy will extend.

  5. S.Gonsal Says:

    Agree with NeelaMahaYoda and Dilrook.

    Don’t forget this new joker is also a Tamil and what his sister did in the UN supporting her boss Navi Pillay.
    What surprises me is Dinesh (JO) straightway approved this Tamil friend. Only Wimal is making some noise in his C news.

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