Incumbent CB Governor must be reappointed

Ex-Central Bankers’ open letter to President Gotabaya Rajapaksa:

We are writing this letter on behalf of all members of the Central Bank Retired Executive Officers Association, (CBREOA). Our Association is a non-political organisation consisting of the retired executive officers of all categories of the Central Bank of Sri Lanka (CBSL), such as Deputy Governors, Assistant Governors, Heads of Departments, Additional Heads of Departments, Deputy Heads of Departments and other senior members of the executive category.

Your Excellency the President, first of all, we wish to express our gratitude of your wise decision with a vision to appoint Dr. Nandalal Weerasinghe to shoulder the responsibilities of the Governor of the CBSL. He was mostly welcomed by the current staff of the CBSL, professionals, bankers, activists in financial markets, academics, business community and the general public with confidence that he is capable of rescuing the nation from the current economic crisis with impending catastrophic challenges, unless the crisis is handled with professional competency.

We are writing to express our grave concerns about the media reports that there are efforts to remove Dr. Nandalal Weerasinghe from the post of Governor of the Central Bank of Sri Lanka against your wish. If they are true, we would like bring your attention to the following factors in the name of the entire Sri Lankan nation that is facing an unprecedented crisis on multiple dimensions making the entire nation to suffer from a fear of very uncertain future.

1. The nation at this hour needs competent and resourceful personalities with experience and exposure to address the economic crisis as the first priority, as it is the economic factor that is behind almost all problems that we are facing today. The magnitude and complexity of the crisis and impending catastrophic problems that are associate with them are so grave that no one lacking utmost self-confidence to arrest the situation and deliver the results would dare to come forward to shoulder the responsibility at the very high risk of irreparable damage that could fall upon him in the event of his failure to handle the situation and deliver the expected results to the nation. Dr. Weerasinghe displayed his self-confidence and calibre by being bold enough to accept that challenge. We, as citizens of this nation, should appreciate his spirits and should be grateful to him.

2. Dr. Weerasinghe is the top competent central banker at present who has a long period of active participation in handling all key areas of macroeconomic management. In his long career in the Central Bank starting as an Assistant Director and continue his service as Senior Economist, Deputy Director of Economic Research, Additional Director of Economic Research and Director of the Economic Research and as Assistant Governor and Deputy Governor in charge of the Price and Financial Stability, up to becoming the highest position of the Senior Deputy Governor and working as the Chairman of internal committees such as the Monetary Policy Committee, Financial System Stability Committee, International Reserve Investment Oversight Committee, Market Operations Committee, Non-Financial Risk Management Committee etc., he has gathered comprehensive knowledge and experience to become one of the most promising central bankers of the nation. During his career in the Bank, where he held the position of Senior Deputy Governor for almost ten years and acted as the Governor when need arose, he represented the Central Bank at very high-level forums in dealing with the international organizations such as International Monetary Fund (IMF), World Bank (WB), Asian Development Bank (ADB) and many other bilateral and multilateral institutions handling project on macroeconomic management. He also served for the IMF as Alternate Director representing Sri Lanka and Maldives, where he had the opportunity to gather experience in the practical aspects related to operations of the IMF. It is this background that had made him to be confident in his calibre and ability to take the challenge at this critical hour of the nation.

3. Immediately after resuming duties of the Governor, Dr. Weerasinghe displayed a very high degree of professionalism and took drastic measures to arrest the situation. At the very inception, he was able to consolidate the unconditional support of the current staff of the CBSL and build the confidence among them that CBSL team guided by him is capable of facing the challenge of overcoming the crisis. The markets, bankers, prominent professionals and international organizations expressed their confidence about the competency of Dr. Weerasinghe to deliver the expected results. Establishing confidence of all stakeholders including international institutions is the important requirement in this critical period that our nation is undergoing. He was able to achieve it in no time. Credibility is another attribute that needed at this hour. He has won that as well with very high degree.

4. Both Dr. Indrajith Coomaraswamy, former Governor of the CBSL and Veteran Economist Dr. W A Wijewardena, former Deputy Governor of the CBSL who are highly respected and active economists also commended the work of Dr. Weerasinghe, as the incumbent Governor and expressed their confidence about his calibre and commitment to deliver the expected results to the nation. What is required at this hour is to extend him the maximum support in all possible ways to take his programme forward along with negotiations with the IMF and other international organizations. Disturbing that process by any effort to remove him from the position will be an unbearable blow to the whole process of arresting the situation and establishing a system to foster a sustainable growth. The nation already beaten in all fronts, couldn’t bear such a blow and the outcome of such an imprudent move would be catastrophic with unimaginable and far-reaching consequences.

5. We would like to express our experience as senior officers of the CBSL how several persons appointed in the past as the Governor without sound knowledge and exposure on central banking failed and caused irreparable damage to the image of this prestigious institution. Central banking is an area where a person needs to be conversant in banking and finance, micro and macro-economic management, public finance, international financial system and relationships with respect to monetary management, real sector activities etc. That is why we have a history of failed non-central bankers as Governors.

6. In view of the foregoing, we strongly believe in the competency and commitment of Dr. Weerasinghe to restore the confidence on the CBSL for an independent and professional discharge of its responsibilities at this critical juncture. If anyone is contemplating to remove him from his position as the Governor of the Central Bank of Sri Lanka, we see it as a highly unpatriotic move with entirely ulterior motives. We categorically condemn such efforts in all counts.

We request your excellency;

a). To take all possible measures as the President of this nation to prevent such sinister efforts if any which will expose you and the whole nation to a disastrous catastrophe. This is not a time to experiment as the situation is grave.

b). According to Rule 13. (1) of the Monetary Law Act, one term of the Post of the Governor of the CBSL is equal to six-year period. The present six-year term is ending at the date of 30th June 2022 and in this term, Dr. Weerasinghe was appointed to the Governor post on 07th April 2022 for the balance period of this term after the resignation of the previous Governor, as per Rule 13. (2) of the Monetary Law Act. The new six-year term is commenced with effect from 01st July 2022 and therefore, we earnestly request your excellency, to re-appoint Dr. Nandalal Weerasinghe to the Governor post of the CBSL for the coming six-year period commencing from 01st July 2022.

We wish that you have the wisdom to understand the situation and act accordingly.

Signed by

A M R K Attanayake

President

P A Wijeratne

Secretary

On behalf of the Executive Council of the CBREOA

Copies: Leaders of the political parties representing the parliament.