CB defends transfer of Secretary Monetary Board

The transfer of the Secretary to the Monetary Board of the Central Bank Ms. K.M.A.N. Daulagala was in line with periodic changes, the Central Bank (CB) said on Tuesday, implying that the change was based on service requirements and no other reason.

The change was made on the day before Ajith Nivard Cabraal took over as the new Governor of the CB, with the media speculating that the transfer of Ms. Daulagala, who is also a CB Assistant Governor, was connected to her work in assisting the Presidential Commission on the Bond transactions in which Mr. Cabraal’s name has transpired. Meanwhile two fundamental rights petitions have been filed in the Supreme Court challenging Mr. Cabraal's appointment.

In a statement, the CB said Assistant Governor J. P.R. Karunaratne has been appointed as the new Secretary with effect from September 15. “The CB also wishes to state that responsibilities and functions assigned to all officers of the CB including

“The CB also wishes to state that responsibilities and functions assigned to all officers of the CB including senior officers are subject to change from time to time in the best interests of the CB as determined by the management

senior officers are subject to change from time to time in the best interests of the CB as determined by the management. Further, it should be noted that transfers of staff and rotation of officers in a financial institution is an essential and vital component of internal control and internal check,” it said.

In another move, the banking regulator is considering transferring to the Treasury, its senior Deputy Governor K.M. Mahinda Siriwardana, ostensibly since he too was involved in work related to the Bond Commission. CB officials were not immediately available for clarification.