New Central Bank governor to be appointed

A new Governor will be appointed for the Central Bank of Sri Lanka within the next few hours, President Maithripala Sirisena said.

He made this announcement while addressing a gathering during the National Kidney Decease Prevention Programme in Girandurukotte, a short while ago.

Central Bank Governor Arjuna Mahendran’s tenure is set to end tomorrow (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.