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Sunday Dec 15, 2024
Thursday, 21 April 2022 04:12 - - {{hitsCtrl.values.hits}}
Parliamentary Committee on Public Finance Chairman and MP Anura Priyadharshana Yapa yesterday blamed the former Governor of the Central Bank (CBSL) Ajith Nivard Cabraal for taking unilateral autocratic decisions to float the rupee bypassing concerns raised by others in the Monetary Board.
Yapa, who is among a group of 10 SLPP MPs who decided to sit in opposition on Tuesday, said the Committee had summoned officials of the CBSL and Monetary Board and questioned them in relation to the early March 2022 decision to float the rupee.
Yapa read from the verbatim record of the meeting where a member of the MB had said that its decision was to fix the rate at Rs. 230 but the former Governor had said a decision had been taken to allow greater flexibility in the exchange rates.
Yapa first quoted what Sanjeewa Jayawardena PC, and member of the Monetary Board had told the Committee.
“The decision on the 7th of March, honourable chairman and members was very clear. It is in black and white that it is fixed at 230 rupees because we were very, very conscious of the dangers of a free float overnight. So originally even the day before that on 3 March there was a discussion as to whether it should go up to Rs. 215 and thereafter be reviewed. So, the decision is that the bankers have some imperatives but anyway the Monetary Board decision is for Rs. 230.”
He also quoted what Cabraal had told the Committee. “Considering the severity of the external shocks and recent development in the domestic front, the Monetary Board of the CBSL agreed to a comprehensive policy package. In this context, greater flexibility in the exchange rate will be allowed to the market with immediate effect,” Cabraal had said.
Yapa said it is this person (Cabraal) who allowed the free float. “Even the Finance Minister and the Cabinet were not aware of this. Today we are unable to fix the price of anything because of this autocratic decision taken by this one single person. The Government must accept this responsibility. The economic situation in the country is what it is today because of the appointment of people who were unsuitable for such positions,” Yapa charged.
He said that by allowing different officials to do as they please, the Government has totally ruined the country. Secretaries to the President and some officials had taken matters into their own hands and started running the country as they wanted without any oversight,” he alleged.
Yapa recalled that while he was a Minister in the previous Government under then President Maithripala Sirisena, they had proposed the name of Indrajith Coomaraswamy to be the Governor. “The letter was typed on my daughter’s typewriter and given the next day by President Sirisena. Then Lakshman Yapa Abeywardena was the Deputy Minister of Finance. This is how we intervened to put the economy on the right track,” he added.
