Problems at Sri Lanka’s Central Bank

As a series of unexpected transfers at Sri Lanka's Central Bank were effected at the banking regulator causing uncertainty amongst officers on Tuesday, more transfers were likely to be put in place in coming days, informed sources said. Fifteen senior officers were transferred from their positions, including a few officials who had given evidence before the Parliamentary Committee that probed the bond issue, the sources said. The bank’s information department officials were not available for comment on these developments. With no statement being issued it was unclear whether these were routine transfers or made for another, unexplained purpose. The uncertainty came amidst another issue on Tuesday when Governor Arjuna Mahendran walked into a supposedly ‘private’ meeting of senior officials including Assistant Governors called to raise concerns about the transfers and the proposed hiring of retired bank officers as consultants. The sources said the Governor was involved in an argument with these officials saying such meetings were not the right approach (in dealing with issues). Those present said in defence that they had a right to discuss these concerns and grievances and this has been a practice in the past. None of the officers moved to others positions had advance notice of the transfers. The transfer list issued on Friday by A.M.N. Gunawardana, Director/Human Resources is as follows: 1) E.A. Hettiarachchi - Director/ITD as Director/Facilities Management Department; 2) M.I. Sufiyan –Secretary as Director/Northern and Eastern Provinces; 3) Ms. K.M.A.N. Daulagala - Director/SNBFI as Director/North Central and North Western Provinces; 4) U.P. Alawattage – Director as Director/Supervision of Non-Bank Financial Institutions Department; 5) D.M. Rupasinghe - Controller of Exchange as Director/Upcountry; 6) M.J.S. Abeysinghe - Director/CBS as Director/Southern Province; 7) U.H.E. Silva - Director/FMD as Director/Centre for Banking Studies; 8) Ms. Yvette Fernando -Director/BSD as Controller/Exchange Control Department; 9) Ms. C.M.D.N.K. Seneviratne - Superintendent/PDD as Director/Information Technology Department; 10) T.H.B. Sarathchandra - Additional Director/IOD as acting Superintendent/Public Debt Department; 11) Ms. S.H. Gunawardena - Additional Superintendent/CRD as acting Director/Bank Supervision Department; 12) K.H.A.S. Ariyaratna - acting Additional Director/STD as Secretary/Secretariat Department 13) T.D.H. Karunarathne - Additional Superintendent/EPF as Additional Superintendent/Currency Department 14) M.S.K. Dharmawardena - Additional Superintendent/EPF as Additional Director/Regional Development Department; and 15) Dr. M Z M Aazim - Acting Additional Superintendent as Acting Additional Director/Statistics Department. - ENDS -