CBSL issues clarification on composition of Governing Board & Monetary Board

The Central Bank of Sri Lanka (CBSL) has issued a clarification with regard to the composition of its Governing Board and Monetary Policy Board.

In a statement published on Friday (Nov.17), the CBSL mentioned that Sanjeeva Jayawardena, PC, had stepped down as a member of the Governing Board with effect from 05 November 2023.

Meanwhile, Dr. Ranee Jayamaha had tendered her resignation as a Monetary Board member, effective from 12 September 2023.

On 14 November, the Supreme Court, in a landmark judgment, determined that former President Gotabaya Rajapaksa, former Prime Minister Mahinda Rajapaksa, former Finance Minister Basil Rajapaksa and several other senior state officials were responsible for the economic crisis in the country.

In its verdict, the country’s top court said the three Rajapaksa brothers as well as former CBSL governors Ajith Nivard Cabraal and Prof. W.D. Lakshman, former Finance Secretary S.R. Attygalle, former Presidential Secretary P.B. Jayasundara and the Monetary Board members of the Central Bank have violated the public trust and breached Article 12 (1) of the Constitution, in their administration of the economy, leading to the economic crisis in the country.

Accordingly, the CBSL, in its Friday statement, emphasized that both Dr. Jayamaha and Mr. Jayawardena had submitted their resignations well before the Supreme Court delivered its final judgment in respect of the fundamental rights (FR) petitions filed on the economic crisis.

The Governing Body was established, in terms of the provisions of the CBSL Act, No.16 of 2023, as the responsible body to oversee the administration and manage the affairs and determine the general policies of CBSL.

In terms of the law, the appointed members of the previously existing Monetary Board continued to serve as the members of Governing Board.

Accordingly, Sanjeeva Jayawardena P.C. and A.N. Fonseka, who were appointed members of Monetary Board on 29 June 2021 and 27 July 2022, respectively, continued to serve as the members of Governing Board.

However, Dr. Ranee Jayamaha who was a member of Monetary Board since 29 July 2020 had resigned from the Monetary Board with effect from 12 September 2023, and therefore was not a member of Governing Board. Jayawardena PC, appointed member who continued as a member of Governing Board had tendered his resignation with effect from 05 November 2023.