CB unions against possible extension to 2 retiring Deputy Governors

Staff unions at the Central Bank (CB) are up in arms over alleged attempts to extend the tenure of two retiring Deputy Governors (DG), contrary to accepted practice and norms.

CB Governor Indrajit Coomaraswamy or senior officials were immediately available for comment on alleged moves by the Govt to extend the terms of the two officers, despite the CB’s Monetary Board (MB) already selecting another senior official as DG to fill the impending vacancy.

DG S. Lankatillake is due to retire today (30) on reaching 60 years, while Senior DG P. Samarasiri, in the news over the CB Bond scam, is retiring on August 18. Extensions are not normally given to officers, once they reach the retirement age of 60 years.

Union sources said the MB, on April 4, had interviewed six senior officers (all Assistant Governors)C.J.P. Siriwardena, K.D. Ranasinghe, S.S. Ratnayake, H.A. Karunaratna, R.A.A. Jayalath and S.R. Attygalle (currently on secondment to the Ministry of Finance as Deputy Secretary) - to pick a new DG on Mr Lankatillake’s retirement. Soon after, the MB is learned to have made the selection and sent the nominee’s name to the Finance Minister for concurrent approval. This is in line with the Monetary Law which provides for the MB to appoint one or more DGs ‘with the concurrence of the Minister in charge of the subject of Finance’.

However, until yesterday (Saturday), there was no response from the Finance Minister’s office, despite the vacancy from Monday, May 1, for the DG’s post. “Now we hear from reliable Govt sources that a Cabinet paper is being prepared to extend the terms of the two retiring DGs,” a Union source said.

In a February 5, 2017, story, the Business Times reported on attempts by the Finance Minister to appoint an ‘outsider’, when these (DG) positions fall vacant and that, the ‘request’ was made at an MB meeting, which, however, was not considered.