Sri Lanka president Maithripala Sirisena to appoint new central bank chief soon

By: | Published: June 29, 2016 5:24 PM

Sri Lanka President Maithripala Sirisena said on Wednesday that he would appoint a new central bank governor within hours, a week after incumbent Arjuna Mahendran...

The opposition and most of the country's civil society organisations have accused Mahendran of alleged involvement in bond dealings favouring a firm related to his son-in law. (Reuters)The opposition and most of the country’s civil society organisations have accused Mahendran of alleged involvement in bond dealings favouring a firm related to his son-in law. (Reuters)

Sri Lanka President Maithripala Sirisena said on Wednesday that he would appoint a new central bank governor within hours, a week after incumbent Arjuna Mahendran said he would not seek an extension of his term until a parliamentary committee clears his name of allegations against him.

“I will appoint a new Governor to the Central Bank in the coming hours,” President Sirisena said in a twitter message after he made the announcement at a public gathering.

The opposition and most of the country’s civil society organisations have accused Mahendran of alleged involvement in bond dealings favouring a firm related to his son-in law.

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Mahendran has denied any wrongdoing. His term ends on June 30.

The Committee on Public Enterprises (COPE) has been looking into the allegations.

“The president will appoint the governor for one year, according to his vested power in the constitution. The president will decide if the person should be given an extension or not,” junior finance minister Lakshman Yapa Abeyawickrama told reporters.

“It will be an experienced economist.”

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