LankaTalks

Cabraal to helm Central Bank again

Confirming rumours that were circulating throughout last week, Ajith Nivard Cabraal has stepped down as the State Minister of Money and Capital Market and State Enterprise Reforms to take over the Central Bank of Sri Lanka (CBSL) as the Governor once again. 

Cabraal is expected to assume duties this week. 

In an earlier occasion, when The Morning Business inquired about the ongoing speculation on his stepping down as State Minister and taking up the Governor position, Minister Cabraal neither denied nor accepted the statement. 

In a recent noteworthy television interview, Cabraal stated that he is “puzzled” that the Sri Lankan rupee (LKR) has been depreciating, despite an influx of $ 1.2 billion from the International Monetary Fund (IMF) in the form of Special Drawing Rights (SDRs), and swaps from Bangladesh Central Bank and the China Development Bank (CDB). He even said that the CBSL should take proactive measures as it was on a depreciating swing. 

Cabraal entered the Parliament through the National List and was a founding member of the Sri Lanka Podujana Peramuna (SLPP). Cabraal is, in fact, a former Governor of the CBSL. He held the position from July 2006 to January 2015 and was a Chartered Accountant in profession. 

The current Governor, Professor W.D. Lakshman, made his resignation announcement last Friday (10) which is in effect from Tuesday (14). He is the 15th Governor of the CBSL. 

He said in a press conference on Friday that he was offered a position at the IMF, which he had declined. 

Cabraal is taking up the position as the new Governor at a time Sri Lanka is facing a foreign exchange crisis, and a LKR depreciation.