Visionary on eradication of rural poverty
It is nine years since the passing away of Dr. H. N. S. Karunatilake, a highly respected economist, scholar, able administrator and a strict disciplinarian.
Dr. Karunatilake took over the governorship of the Central Bank during one of the darkest periods in the history of independent Sri Lanka, when the Northeast as well as the South of the country faced an uprising causing the administration and economic activity to a grinding halt. One of the foremost tasks faced by the Governor was to ensure the continued operation of the banking sector in order to revive economic activity. His close relationship with the domestic banking sector and banks abroad enabled him to secure much needed foreign currency reserve to maintain the inflow of essentials such as petroleum and food items.
Armed with the required qualifications from the London School of Economics and Harvard University, he devoted his time to enrich the research capabilities of the staff of the Central Bank, improving the quality of staff handling internal operations, bank supervision and related activities entrusted with the bank. He used his leisure hours to assist the universities and higher education institutions in the country by teaching Economics and allied subjects and to introduce new subject areas in Economics, Public Administration and Business Administration.
He also realised the urgent need to enhance the capabilities of Central Bank staff by offering scholarships using the bank’s own funds without waiting for foreign assistance. He encouraged the staff to contribute research reports and articles to the bank’s periodic publication titled “Staff Studies” and simultaneously improved the facilities in the Research Library, to achieve this objective.
When the head office of Bank of Credit and Commerce International in London was closed down, he took timely action and avoided panic among depositors of its Colombo branch, which would have resulted in an adverse systemic effect on other banks due to withdrawal of deposits.
His humane qualities were reflected in his introduction of a competitive salary structure for the staff of the bank. He established holiday homes and expanded medical facilities and other welfare benefits for the staff of the bank.
Dr. Karunatilake is remembered by the staff who faced the unfortunate bomb attack of the LTTE on the bank with gratitude and for the timely action taken by him to erect a security barrier at the entrance to the bank building which saved hundreds of innocent lives.
(From the President and the members
of the Commemorative Committee)