Independence of the Central Bank threatened : Eran

Independence of the Central Bank of Sri Lanka (CBSL) has been threatened by the government, former State Finance Minister Eran Wickramaratne said today.

Wickramaratne made these comments after the sudden resignation of two members of the CBSL Monetary Board .

Former Colombo Stock Exchange (CSE) Chairman and veteran banker Nihal Fonseka and Institute of Policy Studies (IPS) Executive Director Dr. Dushni Weerakoon submitted their resignation from the Board, which is responsible for monetary policy decision-making.

The former State Finance Minister speaking during a press conference today claimed that the members have been forced to resign by the government.

“Unfortunately when you force-out members of the Monetary Board, the independence of the CBSL is compromised.”

“We are disappointed that the CBSL headed by an academic couldn’t see the importance of safe-guarding its members,”

Wickramaratne called on the government to respect the independence of the CBSL irrespective of its policy.

“The CBSL must be independent to ensure stable currency, a tolerable inflation rate and stability in the economy, ” Wickramaratne added.