CB stole my idea

The Central Bank and its governor are being accused of stealing a well-developed idea from a Canadian-based Sri Lankan commodity specialist on hedging options against rising oil prices, and offering it as their ‘own’ proposal.

Upul Arunajith, a Chartered Marketer and Derivates Markets Specialist in Toronto, for the past four years has been having a frustrating battle with the authorities in convincing them that a combination of hedging, swap and futures options on oil contracts could save the country millions of rupees.

About two weeks back Arunajith, whose offer “to help my country” hasn’t been recognized so far, wrote to President Mahinda Rajapaksa complaining that Central Bank Governor Ajith Nivard Cabraal and the bank had plagiarized his entire project which he has worked with Sri Lankan authorities since 2001.

“Plagiarism runs counter to established values. It negates fair play and speaks poorly of the Central Bank,” the letter said providing details of the discussions and correspondence Arunajith has had with various ministers and, in recent times the Central Bank.

But Cabraal rejected the idea saying the proposal was developed on the initiative of the Bank’s Economic Research Department and taken to cabinet. “Hedging is a common instrument that has been used for decades where people buy forward. This is something no one needs to highlight or bring forward because it is there in the market to use,” he told The Sunday Times FT.

Angry at being ‘cheated’, the Sri Lankan professional told The Sunday Times FT, “I have a violated feeling … to be told that I had no role in this project that I am the architect. The Central Bank definitely has stolen my idea.”Cabraal acknowledges that Arunajith met him, even before he was governor. But, asked whether the Central Bank had ‘stolen’ the proposal since Arunajith had spoken to the Bank and many ministers over the years on this initiative, the governor said: “Various people say various things. When there is an initiative people want to take credit for it.”

He said hedging is not anybody’s proposal … it’s a worldwide instrument, everybody uses it.

The Sunday Times FT has reported in the past Arunajith efforts to attract the authorities for a project he says would come with his free services.
Arunajith met Petroleum Resources Minister A.H. M. Fowzie and Ceylon Petroleum Corporation (CPC) officials some months back and made a proposal. He had over the years also discussed the plan with then Ministers Susil Premjayath and Karu Jayasuriya when they held the portfolio.
The Sri Lankan specialist wrote to Cabraal in December 2006 after the later was appointed an economic advisor and informed him about the proposal. Then in August, he wrote to Dr H.N. Thenuwara, Director, Economic Research Department at the Central Bank providing an introduction to crude oil hedging.
On September 28, the Central Bank issued a statement relating to a plan for crude oil hedging – with no reference to Arunajith’s proposal.
Dr Thenuwara, in an October 10 letter to Arunajith after the latter raised issue, said sufficient expertise and knowledge is already available in the Bank and other government institutions to implement this type of scheme. “Accordingly we would not need any outside assistance in this effort, at present,” the letter said.
“Wonder where all these experts have been all these years when the CPC was facing a crisis with record oil prices?” asked the angry commodity specialist.
Cabraal, asked about the status of the Central Bank proposal, said: “The cabinet appointed a team from the Ministry of Petroleum Resources, the Ministry of Finance and the Central Bank.
A scheme has been formulated which is again going before cabinet and awaiting sanction for the broad outline of the proposal. Purchases – by the Petroleum Resources Ministry would thereafter be based on this arrangement.”