The deadlock between President Maithripala Sirisena and Prime Minister Ranil Wickremesinghe continued over the appointment of a new Governor for Central Bank, with the Monetary Board stepping into act as the ‘CEO’ and running the day to day activities from today, until the appointment of a new Governor.
Ranil and Sirisena | File photo
The Colombo Telegraph learns that while Wickremesinghe campaigned for the appointment of his senior advisor Charitha Ratwatte as Governor, an equally stubborn Maithripala refused to budge from his decision in appointing Deputy Governor Nandalal Weeresinghe to the post, resulting in a further escalation of an internal rift in the coalition government.
The Government however attempted to quell the situation claiming that it was awaiting the return of Finance Minister Ravi Karunanayake from overseas to make the official announcement, even though the final decision rests on the President and Prime Minister.
“The Finance Minister’s consent is necessary, but that can even be obtained over the phone. The government is finding excuses in an effort to buy more time,” a highly placed source said.
Arjuna Mahendran’s term as Central Bank Governor ended at 6.00 p.m. on Thursday.
Meanwhile, Wickremesinghe has denied protecting Mahendran, claiming that the controversial ex-Governor who is allegedly involved in several Treasury bond scandals has not being proved guilty in any inquiry so far.
“I am not protecting him, but neither has he being proved guilty. However, if he is proven guilty, then action will be taken against him,” Wickremesinghe reportedly told the ITN. ( By Munza Mushtaq © Colombo Telegraph)
Government In Crisis Over Central Bank Governor
Aia / July 1, 2016
Stand-off continues over Central bank governor- this is the heading the MR’s camp wants to see. They must be licking their lips, knowing when the relationship between these two gets to this low, no one will go after them to dig their dirt, which has been their worst fear.
nimal fernando / July 1, 2016
Why is Mahenderan so precious?
And there is no principal involved here. Is he willing to make way for a Rajapakse comeback to save just one man and sacrifice 6.2 million voters?
Disappointingly for us, Ranil is turning out to be the idiot that the people who didn’t vote him to power for 20 years always knew.
Dr,Rajasingham Narendran / July 1, 2016
Mahendran as a person is not precious, but truth and justice are precious! Truth and justice are what we sorely lack in this country and are hindering our progress.
Sinchuappu / July 1, 2016
I do think the same.
Almost everyone adds they thoughts. Even journos dont rethink before they publish. Most of them still work onthe tunes of the Rajakashe Mafia. Media Mafia also earns better. So for them no matter the message woudl have been a fabricat… that is how they spread the views regarding CB issue.
And almost every simple simon tries to attack not knwoing the every bits about the issues. I mylsef even if I read a lot about bonds HAVE simpy no idea about the allegations. I am PG stuent living in Europe. So, I cant be the fool not to have gotten it all while every idiot seems to be arguing putting the entire blame on Arjuna. I still believe he is the victim here.
Don Stanley / July 1, 2016
The Central Bank should have the highest credibility, but has been rocked by scandal to its FOUNDATIONS, due to Mahendran and his corruption, and insider trading with son in law.
Ranil is DESTROYING THE ECONOMY OF SRI LANKA. There is no policy stability and FDI investors are fleeing the country because of Ranil’s deceit. All rating agencies have down graded the soveiegn.
There is NO CAPACITY in Sri Lanka to solve the mess, neither Rattwatta nor Weerasinghe have the qualifications, integrity or expertise.
The compormise should be asking Dr. Raghuram Rajan who is stepping down as RBI head to help restructure the national debt and clean up the accounts at the Central bank in Sri Lanka
The UNP is destroying what remained after Mahinda Jarapassa and the corrupt clown cabraal left off the Sri Lanka economy!
The economic disaster that the UNP is causing in Sri Lanka should be exposed and stopped, rather than continued.
Kalupahana / July 1, 2016
Ranil wants to hide the truth about how badly the Sri Lanka Economy has been run by the UNP in the past year, with 2 unqualified, incompetent and corrupt stooges running the economy (Ravi K and Mahendran) and the fact that today Sri Lanka is headed for a Greece like DEBT CRISIS situation, while the rupee is crashing and only maintained on more borrowings, with inequality widening, poverty increasing, all with IMF loans and BAD advice..
The help that Sri Lanka gets from IMF and World Bank should be to track down the billions stolen and hoarded in off short bank accounts to pay off the NATIONAL DEBT.
This is what should have been done in Greece too which was looted by corrupt business networks and politicians as in Sri Lanka under Mahinda Jarapassa, but IMF, European Bank and Germany forced austerity on the Greek masses instead of making corruption prevention and tracking of looted funds to pay off the national debt the priority. Ranil is following IMF rules, though IMF is more corrupt than the Central Bank of Sri Lanka!
Dodo / July 2, 2016
CT editors: Some good things are happening on the corruption and Financial Crimes front.
CT Editors: please read and publish the Landmark Judgement on the Billion rupee Coal corruption case and it implications for the CB bond scam.
Also will the corrupt ministers who were pushing the bad Coal deal need to be EXPOSED and Punished.
MsMaralathoni / July 2, 2016
So what are the other options ?
just telling us RW is destroying lanken economy – cant bring us further or not ?
Tell us who to be appointed as next CBG `?
Greetings from Rome
mike / July 2, 2016
Ranil should have suggested either Dr. Mervyn or Modawansa as next CBG !
nimal fernando / July 1, 2016
Mahendern’s transgressions are choirboy-ish in comparison to what went on with Cabral and many others in the Rajapakse administration. And many of Mahendran’s accusers are better accomplished crooks who covered their tracks and don’t have an iota of moral ticker to take him to task.
But there certainly was a conflict of interest with regard to his SIL.
Please understand, soon after independence there were occasions when the DHS interdicted a doctor (told to me by my family) in a rural hospital for accepting some eggs from an OPD patient. The doctor was a wealthy man, didn’t need the ruddy eggs but didn’t have the heart to refuse/insult the poor farmer. But those days such were the ethics expected of public servants. Irrespective of race, in the past, there were many public servants who maintained high standards in ethics. Now, things have changed all over the world; not just in SL.
Aia / July 2, 2016
I am not saying Mahendran is precious, with kind of stir his appointment brought, even if he is precious, ceasing the opportunity, I would let him go when his first year completes as allowed in the employment contract, rather than terminating. A win-win situation, and I am sure Mahen should not have any ill-feeling against any. There is nothing proven against him yet, although there were allegations of wrong doing against him on the basis of conflict of interest. In overall, the GSL would have been better off without him, even he will be cleared of all allegations, given the amount of focus it drew from PM and HE.
Amarasiri / July 1, 2016
President Maithripala Sirisena and Prime Minister Ranil Wickremesinghe
“Arjuna Mahendran’s term as Central Bank Governor ended at 6.00 p.m. on Thursday.”
Arjuna Mahendran has shown
1. Lack of Intelligence and honesty.
2. Lack of Transparency.
3. Lack of Integrity and Ethics.
So, just don’t reappoint him. Find some other replacement. There must be some others you can find to replace him. Use a good head hunter.
Dr.RajasinghamNarendran / July 1, 2016
Where is the proof that he is stupid, dishonest, Sky, unprincipled and unethical? Do not tell me that since he is a Tamil his IQ is bimodal like the onion prices in Jaffna! Adjectives may sound great, but are .
hollow when used only for effect.
Amarasiri / July 1, 2016
Go by the results. It has nothing to do with his being a Tamil, Sinhala, Para etc. It is him!
The results speak for themselves.
Dr.Rajasingham Narendran / July 1, 2016
What results? Can you explain? What are the facts of this case in all their details? Do we know us all the complicated facts and the machinations? Has he been judged by a court of law? Is he being judged by the media, our politicians and scribes like you? Is this the only way this country knows to go?
I am glad Mahendran and the PM have faced this challenge. I do not hold any brief for both, but do not want street justice to be meted out to even my worst enemy.
Where is the law, due process and justice in this case? If Mahendran is found guilty beyond any doubt , and is judged fairly and objectively, let him get the maximum punishment our law permits.
The Auditor General only expresses his opinion on the basis of the numbers and facts available to him/. He has done his job. Even the COPE report, whatever it may conclude will not be the final verdict. Let Mahendran be prosecuted on the basis of the Auditor General’s and COPE reports. Until then let us not play the role I’d policeman, prosecutor, judge , jury and jailor!
If the law and due process are applicable to the previous government in the face of the criminal allegations of an unimaginable nagnitude leveled against it, why should Arjuna Mahendran, be exempt?
Does not your high IQ tell you, there is more than we hear, at the bottom of this horror story?
We need a Sherlock Holmes to get to the bottom of this story!
Lone Wolf / July 2, 2016
“Let Mahendran be prosecuted on the basis of the Auditor General’s and COPE reports. Until then let us not play the role I’d policeman, prosecutor, judge , jury and jailor!”
I agree with you about the need for a proper investigation followed by a court case if there is enough evidence.
Unfortunately social media and civil society are needed to keep this and other cases awake. Amarasiri and others like him have an important role in this process.
As you must have noticed countless politicians and others have been investigated and even prosecuted but after some time the cases disappear from the media and attention of the public. Some recent examples are the multiple cases against MP Hirunika and the “passport case” of MP Wimal.
Our local example is the NP Minister of Poultry whose actions apparently have not been investigated by anybody and have been forgotten by the media.
I have read that the president has decided that senior government servants should not be arrested because doing this would cause instability. Apparently numerous senior government servants sent a petition to the president asking for this privilege and it was granted. Unbelievable!
Amarasiri / July 2, 2016
“What results? Can you explain? What are the facts of this case in all their details? Do we know us all the complicated facts and the machinations?”
There is a lot of smoke. Is it coming from Mahendran? Mahendran has failed others who supported him and himself by not defending himself by coming out with facts of the case.
Copernicus, Galileo and Kepler all case up data supporting their positions in astronomy 400 years ago against the ancients and church.
Why can’t Mahendran come up with his defense as to why he did what others are accusing him of and put to rest? Instead he is keeping silent and try to silence the critics and cover his credit card expenses.
Bimodal distribution of IQs?
He should learn from Galileo and depict the others as Simplicos, as Galileo did in his Dialogue.
This indicates that his intelligence is lacking.
Dialogue Concerning the Two Chief World Systems
Regarding Mahendran gibe to Oxford,where dies he belong?
Oxford University students “can’t spell, read or think”, say their tutors
Students at the UK’s top university lack “basic common sense”, report finds
They might have beaten hundreds of other applicants for their place at the third-best university in the world, but it seems some Oxford University students might as well have walked in “off the street”.
Professor Colin Mills, a sociology tutor at Oxford said in a report that students appeared as though they knew nothing about the subject they were studying.
“In general there was far too much ‘bloke down the pub’ waffle and in some cases exceptionally little evidence that the candidate had actually read anything of relevance,” Prof Mills wrote.
“It is indeed troublesome to read scripts that might as well have been written by someone walking into Schools [Oxford’s examination hall] off the street without even the slightest acquaintance with lectures and tutorials.”
Another report said one examiner thought there at been “a significant decline” in standards since the last time the examiner marked papers.
One report criticised students’ lack of basic common sense.
“Thus the examiners were repeatedly informed that rainfall is an extraordinary/non-natural/dangerous use of land by the owner, as are trees, silt and drainage ditches, and that grazing cattle on pastures is an hypersensitive (and non-natural) use of farmland,” said the report.
Other issues included:
Classics students misspelling the word Mediterranean, despite the word coming from Latin and being on the front of the paper
“A disconcerting number of candidates seemed to find it difficult to express their thoughts in writing,” said a psychology professor
Drawing a pencil sketch of a book character during a translation exam
“Extremely weak” grasp of sentence structure and syntax, according to one French tutor.
An Oxford University spokesman said: “A minority of colourful comments by examiners makes interesting reading, but they reflect neither the opinion of most Oxford examiners nor the overall academic competence of Oxford undergraduates.”
Thiru / July 1, 2016
Don’t be so opinionated without facts: If they have evidence to Mahendran’s wrong doings why don’t they take him to a kangaroo court of Sri Lanka instead of character assassinating him.
Sri Lanka is not conducive for a person like him from Singapore, where talent and excellence are valued.
A person like Cabarral is best suited to a fools’ paradise like Sri Lanka deserves.
Samuel Jayaweera / July 1, 2016
What results you have been uttering here ?
All the tabloid run by local goons painted the picutre in favour of Rajakashe men plus locals that just judge even without having proofs.
Hypothetical sums according to them should have gone missing … could also be the case in Europe America or anywhere….
Just to put the entire blame for the decision to have made on that day… is beyond all international standards.
To gap up the sums, GOVT put the pressure on him, then the decision was made not by him but together with senior men in CB.
This he will share honestly on the 07th but towhom – TO THAT INCOMPETENT COPE… consists of all kind of men – not by EXPERTS in the area.
ramona therese fernando / July 1, 2016
COPE found Arjuna Mahendra guilty of insider information and other kinds of skewing and milking of Lankan money:
It might have happened during other times and other regimes, but in this case they were caught! If Rajapaksas were up to similar deals, the opposition would have been up there to prosecute them very fast.
Anyway Rajapaksas alleged skewing of the money system was entirely for the building of buildings, and the building up of Lankan money (though it would have possibly fallen flat in the long run without adequate checks and balances of the system…..moneraty system being a very frangible thing that ensures the most honorable outcome for the country). People were yet unsure of their sincerity, and hence they lost the elections.
It’s like the Martha Stewart case. This insider trading was going on for years, before FBI cornered the situation and confined it. It is apparently a new bit of financial science.
And this happened in 2004. Martha Stewart was prosecuted as an example, to uphold the rights of the common man. The little person’s money was thus protected. After that it was Raj Rajaratnam and his association with LTTE terrorism.
America developed this new financial enquiry to protect the rights of the common man’s money. It is therefore amazing that Sri Lanka is involved with it 12 years later, when the rules are already well established globally. And it’s not rocket science.
Samuel Jayaweera / July 1, 2016
this is again an another tabloid new uttering nonsence about COPE
we perfectly know that COPE doe snothave financial experts but MPs and ministers representing parliament.
Until the experts clear that as if a medical experts are the ones to make and explain the views of particular symptoms.. financial complex issues should be made by financial experts.
Anyways, you belong to the same categoary of people that just believe hearing media .. AM is corrupted…
I further believe he is not.
ramona therese fernando / July 1, 2016
“COPE inquiry finds Mahendran had intervened in bond issue” – by Shamindra Ferdinando
Shamindra Ferdinando is a respected journalist.
COPE received the expert advice of former Deputy Governor of the Central Bank W.A. Wijewardene.
Native Vedda / July 1, 2016
“we perfectly know that COPE doe snothave financial experts but MPs and ministers representing parliament.”
In case if COPE needs a forensic expert on Bond issue and financial markets, I can recommend our in-house financial economist KASmaalam K A Sumanasekera for a reasonable fee, an obliging person only when he is sober.
Please let us know.
ramona therese fernando / July 2, 2016
What about the expert advice of former Deputy Governor of the Central Bank W.A. Wijewardene, hey?
colin / July 2, 2016
Ramona you should have put the word expert advice in inverted commas.
It is tragic that certain sections of the media should put him also in the list.It is definitely that the media is acting as the Judge the Jury all in one.
Sam Fernando / July 1, 2016
Amarasiri I assume you are a graduate. Most that added their thoughts are from simple simions – they were no experts in the areas.
If you judge it having read on what you read on local tabloid all those have no substance than … Arjuna should have abused… but none of these have been proved by any of the experts sofar.
Can we talk about the brain injury of former goon – Duminda if we dont know the realities of the real state of forged head injury that made entire nation believed it was realy a head injury that nobody but S pore hospital profesisonal were the experts…
Who reported that.. if not Local media men..
Very same men reported about CBG s abuses even if COURTS snd POLICE rejected him being accused.
It is just there are not evidences to prove AM is corrupted and he grabed the funds of his SON in law COMPANY…
We better wait LET alone until 07 July to get more
As a simple man you can spread any lies,
But an educated world expert it is no easy to face the world, if he had done that.
He is no means a NOVICE guy to have met the kind of decisions either.
Let a committe consists of experts to decide and then we can charge him if everything is proved him to be a CORRUPTED man.
Sam Fernando / July 1, 2016
What results are u talking ?
I never thought the kind of comments from you Amarasiri. Please dont belong to the very same category that woudl do anything to harm anyone.
Let the experts to INVESTIGATE and then we can even attack more AM. Else, it is no means fair.. from the point of view of right thinking … educated communities (if at least 20% are in the country)
Amarasiri / July 2, 2016
“What results are u talking ?”
Have to go with results that are publicly available.
However, Amarasiri is diappointed that Arguna Mahadendran did not defend or justify what he did given the circumstances, the market and the bidders, the needs of Sri Lanka etc. As the Governor of the Central Bank, he should be a very responsible public official. Where was the problem? His Ego, his arrogance, is inability to defend himself as a result of his insufficient intelligence and common sense? All of the above? He has failed those who appointed him.
Are we going to send another 100,000 maids to the Middle East for slavery to fix the losses? Don’t we have enough caused by MaRa MaRa ChaTu MaRa AmaNa MaRa and his cronies?
“What results are u talking ?” . It is given below.
In February 2015 CBSL advertised the sale of Rs. 10 billion in 30 year government bonds at an indicative rate of 9.5%. The sale was oversubscribed with 36 bids of totaling Rs. 20 billion. The majority of bidders, 26, bided for Rs. 100 million or less at a rate of 9.5%–10.5%. However, a few bidders, including Perpetual Treasuries Limited, wanted interest rates of 11%–12%. On 27 February 2015 the CBSL accepted Rs. 10 billion in bids at rates of 9.5%–12.5%. The issuing of ten times the advertised bonds, and at a higher than expected rate, was alleged to cost the Sri Lankan government an additional Rs. 40–45 billion ($300–$340 million). Perpetual Treasuries was issued, directly and indirectly, with Rs. 5 billion in bonds at 12.5%.Perpetual Treasuries was one of the primary dealers in the sale and is owned by Mahendran’s son-in-law Arjun Aloysius. This situation became a controversial political issue in Sri Lanka as the newly elected Sri Lankan Government of President Maithreepala Sirisena came to power with a slogan of good governance in the country. A three-member Committee of eminent lawyers was appointed to investigate the issue and the report produced by the committee claimed that there was no direct involvement by Mahendran in the deal.The Supreme Court of Sri Lanka did not grant leave to proceed in a fundamental rights case that requested a separate inquiry into the bond issue, as no laws were broken.
Following the alleged bond scam, the 12 month Treasury yield of Sri Lanka rose 86bps WoW to 6.99% as at 6 March 2015. On 15 April 2015, during the April monetary policy review, the monetary board of the Central Bank of Sri Lanka reduced policy rates by 50bps resulting in overnight capital gains to the holders of bonds as of that time (with Arjun Aloysius being one).
“CB Governor faces ‘family company’ charges; calls mount for probe”. The Sunday Times (Sri Lanka). 8 March 2015.
^ Jump up to: a b “Harsha vows to go after fraudsters”. The Nation (Sri Lanka). 8 March 2015.
^ Jump up to: a b “Sri Lankan central bank chief cleared over bond scandal”. Mail Online. Agence France-Presse. 19 April 2015.
Jump up ^ Aneez, Shihar (23 April 2015). “Sri Lanka c.bank head resumes duty after bond probe report”. Reuters.
Jump up ^ “CB Bond Issue Call For Independent Probe”. The Sunday Leader. 26 April 2015.
Jump up ^ Fernando, Tharushan (24 May 2015). “Voice Against Corruption Movement condemns PM’s statement on CBSL fraud”. News First.
Jump up ^ Samath, Feizal (22 March 2015). “News Bond issue: Probe committee to question dealers on inside info”. The Sunday Times (Sri Lanka).
Jump up ^ “Primary dealers seek urgent meeting with CB on bond issue”. The Sunday Times (Sri Lanka). 15 March 2015.
Jump up ^ Shauketaly, Faraz (12 April 2015). “Trying To Stop The Third Force”. The Sunday Leader.
Jump up ^ Perera, Yohan (11 March 2015). “Finance Minister dismisses bond issue allegations”. The Daily Mirror (Sri Lanka).
Jump up ^ “Central Bank Governor under fire”. The Sunday Times (Sri Lanka). 15 March 2015.
Jump up ^ “The Central Bank Bond Fiasco”. The Nation (Sri Lanka). 14 March 2015.
Jump up ^ “No direct involvement by Mahendran-Committee”. http://www.dailymirror.lk. Retrieved 31 May 2015.
Jump up ^ Court cannot direct CB Governor as no law has been broken: Counsel | The Sunday Times Sri Lanka. Sundaytimes.lk (10 May 2015). Retrieved on 2015-11-19.
Jump up ^ https://upload.wikimedia.org/wikipedia/commons/1/17/Post_bond_issue_-_capital_gains_scam.jpg
Samuel Jayaweera / July 1, 2016
I simply believe all what we get to read are just fairy tales – how could they work together if they cant get on well.
Lies but blatant lies
Dankottuwa Manike / July 2, 2016
Dead Lock? Unlock it.
confu tao / July 1, 2016
Lets look at this objectively. What RW is saying cannot be disputed. Based on what these monkeys in the Rajapakse camp are saying Mahendran should not be removed. After all these crooks in the Rajapakse mafia are well known for lies, deception, corruption and criminality. You have to be joking for anyone to take their allegations seriously. These bankrupt politicians are hell bent trying to ruin the good reputation of RW who people have trusted and is well known as a honest person. The Supreme court, and other committees appointed to investigate the allegations have not stated that AM is guilty. Now we have a new twist with the Auditor General coming into the picture. The AGs office has been noted for its lack of competence, and I doubt very much whether this office is capable of producing an accurate report. Central banking is a unique business and so is the issue of bonds. These obsolete auditors would not have a clue how to investigate such complex operations. The fact that it is over 1000 pages itself proves that the jokers do not know what they are doing and they think that by producing a great volume of junk that the report will look good. RW, all you have to do is get an expert international firm or the assistance of the IMF to investigate this whole affair. Bond issues will be governed by the by laws and regulations that the central bank has issued for the procedures to be followed when issuing bonds. A compliance audit of the bond transactions benchmarked against the regulations will reveal whether there have been any breaches in the procedures and whether these breaches have resulted in losses to the government or undue benefits to have flown to certain private sector firms.
Also the civil society groups who have been making noises about this are not qualified to make any judgments unless they have been given full access to the records and transactions that took place at the central bank. I am surprised that they have joined the chorus for AM to be sacked when they do not know the facts and are making their conclusions based on hearsay from goons and ignorant politicians. Also appointing COPE to investigate this is absurd. These are uneducated, ignorant politicians who only understand how to make money doing crooked deals. Might as well give the fox in charge of looking after the chickens!!!
shevan / July 1, 2016
What good reputation does RW has now ? Mr.Clean is a self affixed label.
Who in the first place appointed 3 party lawyers to look into the Bond issue instead of getting a panel of Independent experts on the subject.Did RW expect to get an unbiased opinion
Did COPE themselves demanded that the matter be referred to them for a decision or was it RW’s way of palming off responsibility
If the offices of Attorney General,Auditor General and the COPE together with the legislature is full of Ignorants and uneducated wonder where we could find the enlightened lot who could help us.
Perhaps they are found in the inner circle of RW
Mudson Silva. / July 1, 2016
I agree 100% with your comments!. This whole AM saga was orchestrated by Seerasa Media Mafia supported by JO, Chandra, Thunmulle Wimal, DEW Etc. If Arjuna MAHENDRAN is a Kamba Hora then Raaja MAHENDRAN is a LOKA HORA.
The Oracle / July 1, 2016
Wanting to appoint a UNP stalwart and office bearer as the Governor is a big fat joke . What are his credentials apart from being a past student of tax payer funded Royal College ? It seems as if though ethics and principles never taught at this school .
confu tao / July 1, 2016
Oracle, I say listen. Royal College ethics are irrelevant. what is important is Oxford and Cambridge University ethics. Remember that AM has a Oxford background and there is international recognition of Oxford Uni as an institution that bred honest and decent human beings. If you do not understand this and want to compare Royal College with Oxford you are an a….hole.
Julampitiya Amare / July 1, 2016
I think Sira has to be patient here. Sira has to understand that UNP bought him to power. What did Sira do for Ten Years with the Jarapaksas and didn’t utter a single word against the Jarapaksa Regime. VOTED FOR THE 18TH Amendment impeached Shirani Bandaranaike Lasantha murder, Thajudeen Murder, Ekneligoda, Rathupaswela, FTZ Etc Etc the list goes on. He was in the YES SIR category of the Jarapaksas.
words / July 1, 2016
You mean Sira brought the UNP to power! Remember they were in political wilderness for two decades with the esteemed RW loosing election after election ! Sira is not taking back what’s rightfully his.. full control from these morons who have totally messed up the government in 2 years. Next to be thrown out should be RK
Sunil / July 1, 2016
The question is not if Governor has behaved badly or not but the effect of his presence which is crippling the government out of making it’s program work without the old rogues barking it all over the countryside and ignorant and gullible people taking it as truth.We are in a democracy where we need the people’s support.From day one the old thieves who were the real robbers of this country have conveniently used the governors story to cover up their misdemeanors and skulduggery. They were master crooks but are now enjoying some degree of respect hiding behind this governors story.It now seems to many that Cabraal was in fact blemishless in the wake of this governors problem.We know the truth but does it matter.For this reason alone the governor must go and help the government to move on with it’s giant program without an unnecessary distraction.Most of us know the governor is innocent from wrong doing but in politics as the saying goes “Caesars Wife must be beyond suspicion” perception is everything in politics not the truth.
D.Nimal / July 1, 2016
Here is the invisible hand of UNP -Ranil W… made visible! an appoint of proposed CB governor?
This is political cunning mechanism operated by UNP’s democracy of “good governance and rule of law” of the so-called coalition or “compromised government” being to power 2015 January mandate given to MS as President of SL.
This is not the whole point. The point is that this striking example should make clear to all of us ,and help an appointment of CB governor understand how and why people of Island were deceived.
For the public the fact is incontrovertible and indubitable: they (UNP) have deceived the public by NOT fulfilling immerdialey inside bond trading on highest interest rate will contraction of credit ,and out of credit control ,by pegging rupee currency, of that UNP’s currency policy ,they have had promised to fulfil immediately at redressed members of Parliament and public by Ranil W…..of orthodox politician of believed Christian democracy of West.
The tools of deceit of UNP we shall make the most favourable assumption of about CB proposed governor by them, public failed to understand the UNP cunning mechanism of foreign( US and Indian ) domination and neo-liberal policy in ongoing UNP joint management of State in Sri lanka.
The incident of CB governor appoint that shows very well, Sri Lankan STATE being rule by a bloc between TWO BLOC by an alliance between TWO alliances.
ONE BLOC IS THE BLOC OF UNP,TNA MC & JVP of anti-sovereignty and anti-democracy ,among whom UNP, Ranil. W… ranks first .
It is bloc support by US, UK and Indian RAW involving sales and purchases of CB Bonds market and drain of foreign exchange currencies by UNP blessing of financial management.
It is supporting by foreign capital and the monopolies of US and Indian responsible for the lock-outs of CB Bonds.
The Second bloc is that of Ex-SLFPs of CBK, MS civil organization ,anti- Rajapakase elements of handful of Muslim and Tamils which has deceived the people empty promises of “good governances and rule of law”.
It is easy to make promises. The so-called leftist of the “Trotskyist, “revisionist Communist” methods of feeding the people with promises has been tried in every country like in Sri Lankan the world has everywhere ended in totally failure.
The peculiar features of Sri Lankan is that owing to ongoing the counter-revolution situation in the country since 2015 January 8th,that ex-SLFP of CBK and MS will be worse and will come sooner than usual after an appoint of proposed CB Governor.
The leader of UNP has to be realized, that democracy is the rule of the majority. As long as the WILL of majority is not clear ,as long as it is possible to make it out unclear at least with CB governor appoint plausibility ,the people were offered a counter-revolutionary of UNP, TNA and JVP capitalist ruling bloc of government disguised as “democratic”.
The last 18 months has passed majority population has become clear in more than a general senses. It means no more no less than imposing on the people by UNP government which admittedly can neither come into being nor hold is ground democratically by as result of urban councils elections truly FREE ,truly popular elections without further delay..
Legal Eye / July 1, 2016
The need for a properly constituted Monetary Board for the Central Bank of Sri Lanka
I am surprised at the repetitive observations made by Civil Rights Activists and the leaders of the political parties in the opposition including the former President of Sri Lanka regarding the urgent need to appoint a new Governor to the Central Bank consequent to the termination of the period of office of Mr. Arjuna Mahendran yesterday, i.e. 30th of June 2016.
In fact, one member of the public announced over the television, that there is a possibility of the economy of the country would be endangered if a Governor is not appointed immediately.
However, any person examining the provisions of the Monetary Law Act (Act) which has established the Central Bank and sets out the provisions relating to the activities of the Central Bank would conclude that it is not the factual position.
Section 8 0f the Act clearly spells out that the Monetary Board of the Central Bank is in addition to determining the policies or measures authorized to be adopted or taken under this Act is vested with the powers, duties and functions of the Central Bank under the Act and is generally responsible for the management, operations and administration of the Central Bank.
The Monetary Board, if considered it appropriate, is authorized to delegate to the Governor, or to any officer of the Central Bank or to a Committee of such officers, any power, duty or function conferred or imposed on, or assigned to, the Monetary Board. Any power delegated by the Monetary Board has to be performed under the directions of the Monetary Board and the Monetary Board is statutorily responsible for the powers and duties entrusted to it under the Act and/or other applicable statutes.
According to Section 8(2) of the Act the Monetary Board shall consist of:-
(a) the Governor of the Central Bank who shall be the chairman of the Board;
(b) the person holding office for the time being as Secretary to the Ministry of the Minister in charge of the subject of Finance; and
(c)three members appointed by the President on the recommendation of the Minister of Finance, with the concurrence of the Constitutional Council.
In the absence of the Governor from any meeting of the Monetary Board, the Deputy Governor designated as Senior by the Monetary Board acts as his alternate and presides at the meeting and has the right to vote at such meetings.
In the event the Secretary to the Ministry of Finance is unable to attend any meeting
the person holding office for the time being as Deputy Secretary to the Treasury is entitled to attend the meeting and to vote at such meetings
The three appointed members of the Monetary Board as at 1st January 2016 were:-
1. Mr. R.A.Jayatissa, retired Central Bank Officer, Economist
2. Mrs. Manohari Ramanathan, Attorney-at-Law, retired officer of the Legal Draftsman Department
3. Mr. Chrishantha Priyanga Richard Perera, Leading Businessman
Despite all the provisions of the Act and as well as those relating to responsibilities of persons holding office as members of Board of statutory bodies, the media and the Civil Society organizations other than Mr.W.A.Wijewardena, former Deputy Governor of the Central Bank, have not highlighted to the public the accountability of the Monetary Board in respect of the activities of the Central Bank in relation to the management of the Public Debt and the management and the investment of the funds of the Employees’ Provident Fund.
The members of the Monetary Board appear to take the responsibilities and the repercussions to the country and the economy in the discharge of their duties and functions as Monetary Board members’ casually.
However, on the 24th of May 2016 the term of office of Mr. R.A.Jayatissa as a member of the Monetary Board, which was the unexpired period of the term of office of Mr. Nimal Welgama, came to an end and consequently, the Monetary Board which is a statutory body is not properly constituted with effect from 24th May 2016 to date.
To my knowledge no items have been published in the media about the President proposing, with the recommendation of the Minister of Finance, name or names of a suitable person to the Constitutional Council, in terms of section 12 (3) of the Act seeking its concurrence, to fill the vacancy in the Monetary Board- the most vital organization at a time Sri Lanka is faced with several economic issues including important matters relating to Brexit.
In certain statutes, provision is available to ensure that decisions of such a Board would be valid despite a vacancy in the Board or a defect in the appointment of a member to such Board.
Unfortunately, such a provision giving protection and validation to decisions and acts of a not properly constituted Monetary Board is not available in the Act.
Therefore, It is of paramount important for the media and the Civil Society organizations to agitate:-
1. to ensure the vacancies in the Monetary Board as at 1st of July, i.e the post of Governor and that of one appointed member be filled very early to ensure that a properly constituted Monetary Board that could sue and be sued is in place.
2. that the same procedure in relation to the appointment of the appointed member of the Monetary Board be introduced in respect of the procedure for the appointment of the Governor of Central Bank with or without an amendment to the Constitution or the Act
Mallaiyuran / July 1, 2016
Mahendran will be soon forced wear a suicide jacket by the army and taken to Nedunkerny and would be shot by a newly forced-appointed Tamil defence person and and that one too will be shot by accidental fire by another Sinhala Army. This is the pattern of the Medamulana love stories. LTTE IGP left the force blamed having killed Thajudeen. Puppet Sripapan’s case is closing as so many high profile murder cases has been cooked up by Supreme Court. Soon he will have to account for all those. Paskaralingam has jumped into the boiling oil pan. As he has served in P.Richard’s government, he will be crucified for the murders of JVPers in the 1989. All those who can escape from these are Chandrikathasan like non committing but serving for both government and calling Solomon West Ridgeway Dias carried out a non blood revolution to Sinhalese but wiped out the Tamils from the Lankawe. They are the ones will survive.
IQ low, greedy Mahendran’s case is a classic example of how the Tamils sold their pride to Sinhala masters from Sundralingam’s times and ate the Punnakku from hand of the Sinhala masters and got scarified on the altar of Lankawe the Wildlife Sanctuary SinhaLE empire. These people are worth to to called “can be bought with a cup of coffee” by Stephen Don.
Arujuna Mahendran came in with Alosyous. Now he will have to protect his daughter not to go through the Gobi’s wife, Tamilini and like the many Tamil women’s stories. If the Sampanthar and Sumanthiran wants to sell the rest of the Tamils for this sacrificial service, they have an opportunity here. Sumanthiran, even he can get a minister job and go for it. But they can corporate with the rest of the Tamils and have them liberated from these Gobi and suicide jacket grips. It is up to them to chose the path and write their names in the right side of the history book. They can learn from what happened in the UNHRC meeting and how easily Mangala bought all IC with Iddiappam and Pol Sambol got extension time. Old King has warned Iddiappam is only foreign diplomats, but for Mahendran like Tamil LTTEs it is Kurakan Kazhi that is something he make himself.
Jayan / July 1, 2016
Ranil now trying to appoint another rogue (Charitha Rathwatte) as the governor of CB. If Sirisena has iota of brain, he will never allow this to happen.
Rajasinghe / July 1, 2016
When eminent Lawyer Gomin Dayasiri at the Sirasa Satana programme telecasted live on 18th July held under the topic “CB Bond Issue”, mentioned that in determining the future of the Governor, the issue of “Kawda Nayakaya” “Who is the Leader” Maithri or Ranil will come into play. Some eminent journalists on the panel took offence to this submission and hinted that Mr. Dayasiri is attempting to divert attention. But today we are witnessing the reality of his prediction.
It is not too late for Ranil to recollect that he did not contest the Presidency as the UNP Candidate on two consecutive occasions, as he as well as his close supporters knew that Mahinda will easily emerge victorious if it was the case.
Having fared poorly and miserably in most of the elections, Parliamentary, Provincial/local Government held during the past 10 years, UNP was finally able to win (though not convincingly) at the last parliamentary election mainly due to the awareness created by the JVP and Civil Society Movements, of the damage done to the Country under MR regime and the need to to curb level of corruption. So it was a ‘NO’ vote against MR and not a convincing ‘Yes’ to Ranil. If it was any other democracy the opposition would have registered a landslide victory. But in ours, Ranil fell short by 7 seats ! That is the success of Ranil who thinks I am the Leader.
If Ranil is too arrogant, what President needs to do is to appoint a Presidential Commission comprising 5 member panel of Retired Judges/eminent economists/bankers and give them a mandate to look into the entire episode and furnish findings with all people responsible including those who aided and abetted.
The deaf and blind supporters of Ranil and UNP argue that Mahendran has been exonerated by Court of Law, Police and 3 member Committee appointed by Ranil. We should feel sorry for this people as the lack of validity and irrelevance of these 3 avenues have already been given publicity in the print, web and the electronic media. Though COPE has Anura Kumara Dissanayake, Vijitha Herath and Sunil Handuneththi as its Chairman, there is a great doubt that even they will be able to make concrete recommendations as the majority of the members are from UNP and SLFP. The way SLFP joined hands with UNP to bail out Ravi at the No Confidence motion SLFP Ministers who are in the COPE and who have charges of corruption, it is opportunity for a trade off.
In the circumstances it is President Sirisena who should prove the country that he is the Leader. If he does he will have many backers including right thinking UNP’ parliamentarians and members who beleive that Ranil is not indispensible .
If President Sirisena takes a courageous stand it will be a major boost in taking the country in the right direction. Rajasinghe
MAMS / July 1, 2016
Enough people in Srilanka have expressed their displeasure on Arjun Mahendran as Head of Central Bank. As conflict of interest appears on Bond deals done twice befoe. On both occasions his son in law Aloysius has been the biggest signle purhaser/apparent benefactor. Whether Mahendran was honest or not transparency suggest Governer should have stayed away from influencing treasury guys as it has been suggested. President Sirisena seem very patient and pragmatic. PM Ranil Wickremasingha should not force his friend to be reappointed to this position. A qualified career Central Banker would ideally be best suited in the short or longer term. PM should stay away from stalemate which will only play in to Jarapakse’s lap.
MAMS / July 1, 2016
Enough people in Srilanka have expressed their displeasure on Arjun Mahendran as Head of Central Bank. As conflict of interest appears on Bond deals done twice befoe. On both occasions his son in law Aloysius has been the biggest signle purhaser/apparent benefactor. Whether Mahendran was honest or not transparency suggest Governor should have stayed away from influencing treasury guys as it has been suggested. President Sirisena seem very patient and pragmatic. PM Ranil Wickremasingha should not force his friend to be reappointed to this position. A qualified career Central Banker would ideally be best suited in the short or longer term. PM should stay away from stalemate which will only play in to Jarapakse’s lap.
RR / July 1, 2016
A snapshot from Yahapalanaya: Elsewhere this was read recently in an editorial of a National newspaper!
“The Sirisena-Wickremesinghe government is in an unenviable position with VAT protests spreading throughout the country like a bush fire. As if domestic problems (such as Arjun Mahendran’s bondscam issue) were not enough, there has come a renewed UNHRC call for the participation of foreign judges in the war crimes probe mechanism to be set up.”
Even My3+Ranil’s international friends US, UK, France, Canada, and Swiss not only supported it but used baby countries such as Montenegro, Lithuvania, etc as a cat’s paw to criticize SL.
Buddha’s conversation with a young Brahmin comes to my mind: ‘Antho jata bahi jata'(conflicts within, conflicts without!)
Good luck Yahapalana friends!
shankar / July 2, 2016
they are both waiting for Ravi K to come back from japan on monday.Central bank rule is that finance minister must recommend the governor for president to approve.Wonder what will happen when Ravi k comes back.How is his relationship with ranil?Will he not recommend the guys sirisena puts forward?Will sira back down then or go forward by changing the rules of the central bank which is much easier than changing a man into a woman or vise versa?Ranil is seizing on this central bank rule to make a stand on the issue.Sira should just change that stupid rule.The governor should work independently of the finance minister.
Ranbandu / July 2, 2016
Arjuna Mahendran’s term as Central Bank Governor ended at 6.00 p.m. on 30th June 2016. Starting today (July 1st 2016) it is operating without a “HEAD”. That is the truth. Politicization of Central bank by Mahinda Rajapaksa and Ranil Wickramasinghe has brought this calamity on Central Bank. Today our national institution responsible for Sri Lanka’s Rupee value, Money Supply, Interest rates and overseeing the commercial banking system is without a captain or CEO. It does not mean that our financial system will collapse in few days, but it shows the lowest level that our political leaders have descended to achieve their personal objectives.
Mahinda is totally and personally responsible for bringing in his friend Cabral and Ranil is totally and personally responsible for bringing in Mahendran. These two politicians have acted outside the normal established administrative practices (Norms and Standards) for hiring staff to run Government Institutions. In this case, none of these politicians can escape the role of duplicity. I was flabbergasted a year ago watching National T.V news when Mahendran’s nationality was challenged Ranil said “We will give him Citizenship” the next day. What was he thinking” Is Sri Lanka his family heirloom? Ranil and Mahinda are nothing but “Naked Kings”- Keiserens Nye Klæder-.
“I am not protecting him, but neither has he being proved guilty. However, if he is proven guilty, then action will be taken against him,” Wickremesinghe reportedly told the ITN”
The people do not care whether Mahendran is found guilty or not, the truth is most critical affairs of our nation have taken the back-seat to the personal connections and friendships of the Prime Minister. Sri Lankans collectively must answer the question; did majority of us cast our votes for Ranil and Maithri to send Mahinda home and to handover Sri Lanka as Ranil’s family heirloom?
The rulers of any nation understand the governments are operated through a series of processes but not by individuals. Mahendran is an individual and he is irrelevant to the operation of a corrupt free government institution: Central Bank. Innocent or guilty verdict will affect only the personal relationship between Ranil and Mahendran and it is inconsequential to running the financial affairs of a nation. . Mr. Prime Minister; our parents have told us “where there’s smoke there’s fire”.
Shrikharan / July 2, 2016
If Arjuna Mahendran had really involved in insider trading then that is a serious matter. The matter of Raj Rajaratnam who committed the same offence in the USA and now jailed and it is what he revealed to a well publicized interview come into my mind. He disclosed that he being born and grew up in Sri Lanka felt he could also bribe his way through like in Sri Lanka and that was the terrible mistake he made underestimating rigidity of the laws of the USA.
He also said had he committed the same in Sri Lanka he was sure he would have easily bribed and escaped. He regretted his wrong judgement being a migrant American he did not properly understand the rigidity of the rule of the law of the USA.
So looks as if what Rajaratnam said was quite true. Mahendran possibly had gained confidence after reading Rajaratnam’s interview and simply copied him, if what he did was true, the insider trading scandal. So if he too was also proven guilty will he also go to jail like in Rajaratnam’s case?
Ajith JAYASEKERA / July 2, 2016
RW’s bias, favoritism in selection and dependency of this “so called” elite of people born in Colombo and schooled at Royal College at the expense of selecting good, capable and honest people for jobs like these is totally contrary to the “Yahapalanaya” promised prior to coming to power.
Barus / July 2, 2016
Could you please explain the scam in plain English, in a narrative form, step by step, so the readers can understand the whole situation.
Looks like many people are passing judgements based on reports that are inconclusive and circumstantial.
I am not sure if our own president understands the situation. Note that our president wants Mandala as CBG, why not a complete due diligence be done on this man and his investment advises given in the past, Including the GREEK BOND Purchases.
We went belly up on this investment and no one seems to remember that at all, including our president.
If this guy is asked to defend that investment decision to the total satisfaction of the sri Lankan citizens, then he can be the CBG without opposition.
harry hatton / July 2, 2016
Dont let the apologist confuse the issue.
There is nothing to prove here.
Mahendran is a all talk and no shit banker/jack of all trades ( I will talk and impress all comers type !But really this kind of guy will diminish all organizations, its integrity and corrupt whatever he touches)
He is now the Governor of the Central bank.The Central bank issues and manages Government Bonds.
His son in law Aloysious is a new rich wheeler dealer of recent Indian origin who thinks money is god. He is a big primary dealer in Bonds.
The previous governor Cabrall was a scoundrel. Cabrall’s sister was a director of Aloysious company Perpetual ( very surprised no body raised this then , not even the UNP,the then opposition !)
So the Aloysiuses know how to get inside information from the central bank which puts them at a huge advantage over everyone else.
Aloysious also wined and dined Namal Rajapakse who was a clueless idiot and his greed to make a quick buck was used cleverly by the likes of Aloysious , Nimal, Asanga, Rohan etc.
What did our eternal failure Ranil W do when finally he became Prime Minister ?
He appointed Aloysious’s fond father in law Mahendran as the governor of the Central bank !That was the very first appointment RW made as prime Minister !
Previously during the Rajapakse regime, Aloysious had to bribe to manipulate the Bond market.
Now he can get all in the information he needs while in bed !
You simply cannot have as governor of the Central bank a man whose close family are dealing with instruments controlled by the Governor or who will benefit directly from the decisions of the governor.
sr / July 2, 2016
Let people know the credentials of nominees by both the president and the PM and go for a referendum without putting the country further into deterioration.
eldorado / July 2, 2016
Dr Indrajith Coomaraswamy has been appoInted as the Governor of the Central Bank.The deadlock has been broken. I wish him the best of luck in that Hot seat of Political Bedlam.
jimsofty / July 3, 2016
This is why Executive presidency should not be cancelled.
Instead, selection of the party leader position should be changed. IT should not be always the party leader who becomes the nominee for the president post. Instead, that candidate should be selected by secret vote among the party members.
Sona / July 3, 2016
CT, your going to be really running short of fables to publish, now the the eminent Governor Mr Arjuna Magendran, has left that pit of snakeskin.
Take my words seriously , the new governor, henchman to Cabral, Milinda Miragoda & MR will bring the level of the CB to a cow shed.
I doubt he s going to find the money to make the re payments that are due by TGOSL.
He’s old, he’s slow .
Forget where he was educated & what sports he played.
Totally unsuitable to the post & then both MS & RW,will realize their mistake , by which time it ll be too late to get Mr Arjuna Mahendran back.
Let’s see how IC will do with the PM’s 5 year plan.
Sneak copies to Sirasa, his GODFATHER, as well as the snake Mallik S, MR, Cabrall.
This is an extension of what old Cabaal did.
Let’s see who has the last laugh, you or me.
You ll probably have to close down your website aswell,as your GODFATHER’s pockets are not enough to for greedy CT