CB Governor denies Sunday Times report, comes under fire from journalists

  Central Bank (CB) Governor Arjuna Mahendran on Monday denied reports in last week’s Sunday Times that there had been a verbal spat with some officers relating to controversial transfers but came under fire from reporters on Monday. Responding to questions raised on this issue at a bank news briefing on Monday at the banking regulator’s office, Mr. Mahendran said it was a complete distortion of facts and noted that the transfers were routine and rotations are carried out among the 30 department of the CB, annually. He also denied that he had ‘walked’ into a meeting - though not invited – where 30 officials including Assistant Governors had been discussing the controversial transfers and that an argument ensued. CB sources, including those present at the meeting, said it was the Governor who was distorting the facts, noting that such an incident occurred and cannot be hidden from the public. Mr. Mahendran’s responses didn’t satisfy the media with journalists pitching in with pointed questions these issues and a range of management issues confronting the bank. Mr. Mahendran said that this year’s rotational transfer procedure was delayed due to the elections. He pointed out that those officials who have completed five years in one department are eligible for transfer. But one journalist confronted the governor saying that even officials who have not completed six months were transferred. There were queries fired intermittently throughout the question time implying that media reports are not welcome by the CB. But the Governor said that the media is the vehicle that carried the information to the people and the bank much appreciated it and commented that the information should be more and more disseminated in the vernacular media – Sinhala and Tamil. Another journalist told the Governor that some market participants (dealers) have said that their conversations were tapped by the CB, which the Governor categorically denied. Another reporter said that they had information that the CB is either recording or listening to conversations with the media. (Quintus) [caption id="attachment_84975" align="alignnone" width="500"] Sri Lanka Central Bank Governor Arjuna Mahendran speaks during a news conference in Colombo September 28, 2015. Mahendran said on Monday he would not rule out hiking key monetary policy rates from current record lows if the pace of credit expansion continues to grow. REUTERS/Dinuka Liyanawatte[/caption]