The new Central Bank Governor will be appointed only after the Finance Minister Ravi Karunanayake returns to the country, Government sources told Ada Derana. According to the Monetary Board Act it is mandatory to receive the recommendation of the Finance Minister to appoint a new Central Bank Governor.

Ravi Karunanayake is scheduled to return to the country from a visit to Japan on Monday(04), his Parliamentary Secretary told Ada Derana a short while ago.

Central Bank Governor Arjuna Mahendran’s tenure ended yesterday (June 30) while civil society groups, trade unions, opposition politicians and SLFP Ministers have opposed the extension of his term.

Mahendran, a Singapore national of Sri Lankan origin, has been accused last year of leaking inside information to his son-in-law’s firm, allegedly allowing it to make millions of dollars in profits from a central bank bond auction. 

A ruling party committee cleared him of direct involvement but pointed to unusual activity and called for a more thorough investigation which has yet to be held. 

Mahendran, appointed as the Governor following the election victory of President Maithripala Sirisena in January 2015, has consistently maintained his innocence and this week informed the Monetary Board that he will not seek an extension of his term until the Committee on Public Enterprises (COPE) has cleared his name.