Financial Times

Presidential advisor Ajith Nivard Cabraal, who takes over as Central Bank governor tomorrow, was recently in the news over alleged links to pyramid schemes. In a response to the newspaper reports, he says:

“As is well known in the business, banking and professional circles, my firm and I provided consulting services to many clients who faced business closure, down-turns and crisis. On many occasions, through our efforts we were able to revive ailing companies.

Further, due to my intense interest in the subject and its value to the business community, I also provided the leadership towards the establishment of the Business Recovery and Insolvency Practitioners Association of Sri Lanka. This Association, for the first time in Sri Lanka, highlighted the need to revive sick companies professionally in order to turn-around such companies so as to be able to continue their businesses and play a role in the economy of our nation.

It is therefore sad that these pioneering and professional efforts at revival of companies in difficulty has been construed by certain newspapers as being some kind of undesirable or unethical practice.

At the same time, these politically motivated persons under the convenient cloak of journalism, have attempted to suggest that certain companies which are supposed to have links to pyramid schemes are connected to me.

This is a malicious and untenable attempt to tarnish my credibility. My views on “pyramid schemes” and multi-level marketing has been clear, consistent and in the public domain. In my book, “Lak Mawata Muthu Potak” published in October 2004, I have included an essay authored by me and published in the popular Sunday Lankadeepa newspaper on June 27, 2004 titled, “Pyramids in Sri Lanka?”

In that article, I have clearly explained the dangers and ill effects of pyramid schemes and advised the general public to be aware of such schemes. Such warnings were made by me long before some of the current vociferous crusaders against pyramid schemes even realized the dangers of such schemes. I wish to categorically state that members of my family and I have not received or availed ourselves of any travel or entertainment benefits whatsoever at any events from any organisation as insinuated.

In fact, any reader who reads the entire report carefully, would have probably realised such fact, although readers may well have been easily misled by the sensational banner and sub headlines, and the innuendo which have been cunningly used by the newspapers concerned.

I also state that, notwithstanding any personal or professional connections I may have had with clients and other associates during my career in the private and professional sectors as a Management Consultant or a Director, since assuming duties as the Secretary to the Ministry of Plan Implementation, I have discharged my duties with the highest degree of objectivity and impartiality in the interest of the Government and the country.

Needless to say I shall continue to do so as long as I hold public office.
Further, upon taking up of office as the Governor of the Central Bank of Sri Lanka, I would act in absolute accordance with the mandate and requirements of the office and I believe His Excellency the President is confident of my overriding and sincere desire to do so.”