International News

COLOMBO, (APP/AFP) – The new head of Sri
Lanka’s central bank Indrajit Coomaraswamy pledged Monday to uphold its credibility after allegations of insider dealing that forced his predecessor to leave.
Sri Lanka’s president bowed to pressure to replace Arjuna Mahendran after he was accused of leaking information to his son-in-law’s firm, which allegedly made millions of dollars in profits from central bank bond auctions.
The scandal came with Sri Lanka’s economy under stress — last month the country began receiving a $1.5 billion bailout from the International Monetary Fund.
On Monday Coomaraswamy told staff the bank was “one of the great
institutions in this country”.
“I am acutely aware that a primary responsibility, arguably the primary responsibility of the governor, is to uphold this reputation and credibility,” said the 66-year-old former director of economic affairs at the Commonwealth Secretariat, an intergovernmental agency of Commonwealth countries in London.
“I can assure you that I will do my utmost to do so at all times.”
Mahendran, a Singaporean national of Sri Lankan origin, has consistently maintained his innocence and had indicated he wanted to stay on after his term expired on June 30.