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Cabraal’s appointment challenged in SC

24 Sep 2021

  • SJB’s Manusha Nanayakkara files FR petition
  • AG, Basil, Monetary Board, Prez Secy. named as other respondents
  • Wants appointment quashed
By Dinitha Rathnayake Main Opposition Samagi Jana Balawegaya (SJB) Parliamentarian Manusha Nanayakkara has filed a fundamental rights (FR) petition before the Supreme Court (SC), challenging the appointment of former Central Bank of Sri Lanka (CBSL) Governor and State Minister of Money, Capital Market, and State Enterprise Reforms Ajith Nivard Cabraal as CBSL Governor again. In his petition, Nanayakkara has named the Attorney General (AG), Minister of Finance Basil Rajapaksa, CBSL’s Monetary Board, President’s Secretary Dr. P.B. Jayasundara, and Cabraal himself as the respondents. The petitioner has stated that as per Section 12 of the Monetary Law Act, as amended, the CBSL Governor shall be appointed by the President on the recommendation of the Finance Minister, while Section 11 of the Act sets out the disqualifications for the appointment as the Governor or as a Member of the Monetary Board. One such disqualification is being a sitting Member of Parliament (MP). Cabraal, however, resigned as a Sri Lanka Podujana Peramuna (SLPP) National List MP prior to his appointment as the Governor. The petitioner has also claimed that the legislature had, through the provisions of the Monetary Law Act, intended to ensure a degree of independence from the political authority of the Government in the functioning and policy-related matters of the CBSL, and to preserve the non-political nature of the Monetary Board and to rule out any influence in financial decision-making that may arise from political affiliations. It is claimed that the non-political nature of the appointments thus envisioned under the Act prohibits the appointment of former MPs in addition to sitting MPs. Furthermore, the petitioner has claimed that the various forensic audits conducted in respect of the affairs of the CBSL, including the issuance of Treasury Bonds and concerning the channelling of CBSL funds for any illegal cause that resulted in grave losses (the petition references the high-profile case of Imaad Shah Zuberi), may involve matters pertaining to the previous governorship tenure of Cabraal from 1 July 2006 to 30 June 2010 (first term) and from 1 July 2010 to 30 June 2016 (second term). According to the petition, whilst holding office as Governor, Cabraal has had several of his close relatives appointed to chief positions in banks coming under the purview of CBSL. As per the provisions of Section 1.5 of Chapter XLVII of the Establishment Code, nepotism and cronyism as well as family bandyism are considered as a conflict of interest. The petition cites the specific case of Cabraal’s sister, Siromi Noelle Wickramasinghe, who, according to the petition, was directly and indirectly connected to Perpetual Capital Holdings (Pvt.) Ltd., which is the holding company of the primary dealer Perpetual Treasuries Ltd., which was implicated in the CBSL Treasury Bond Scam, as a Director. Last week, former Central Provincial Council Governor and former Campaign for Free and Fair Elections (CaFFE) and Centre for Human Rights and Research Sri Lanka Executive Director Rajith Keerthi Tennakoon filed a Writ of Mandamus, Prohibition, and Certiorari in the Court of Appeal against the appointment of former State Minister Cabraal as CBSL Governor.  Therefore, the petitioner has, citing the alleged violation of the right to equality and equal protection of the law under Article 12 (1) of the Constitution, prayed that the apex superior court declare the appointment of Cabraal as CBSL Governor as null and void, with no force or avail in law, and to thereby quash the appointment. Cabraal is the 16th Governor of CBSL and previously held the position of CBSL Governor during the period from July 2006 to January 2015 as its 12th Governor. His letter of appointment was handed over to him by President Gotabaya Rajapaksa at the Presidential Secretariat on 15 September, following the resignation of former CBSL Governor Prof. W.D. Lakshman on 13 September. Cabraal held office as State Minister of Money, Capital Markets, and State Enterprise Reforms prior to the appointment as Governor of the CBSL and as such, he had to step down from the state ministerial portfolio in order to become CBSL Governor. He became an MP through the National List and was a founding member of the SLPP. Cabraal is a chartered accountant by profession.


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