Jun 12, 2020

Central Bank has failed in its duty - President Featured

President Gotabaya Rajapaksa has said that the Central Bank, which is obligated to protect depositors if any irregularities are discovered in a financial institution, has failed in its duty.

The president was speaking when he met with the inquiring committee appointed to investigate alleged irregularities in the ETI Investments at the Presidential Secretariat yesterday (June 11).

The Committee informed the President that the ETI Investments had not followed the proper procedures in their conduct from its inception. It had invested its assets in other institutes and at the same time, it had not been supervised by the Central Bank, the Committee pointed out.

President Rajapaksa instructed the Committee to investigate into the irregularities in depth and pay more attention to return people their deposits immediately, noting that the Central Bank cannot evade its responsibility in this matter.

The Central Bank is obligated to protect depositors if any irregularities are discovered in a financial institution. The Central Bank has failed in its duty, the president said.

Retired Supreme Court Judge K.T. Chitrasiri chairs the three-member committee. The other members are retired Solicitor General Suhada Gamlath and Senior Banker D.M. Gunasekara.

Secretary to the president, P.B. Jayasundera also participated in this meeting.

Will not hesitate

Meanwhile, in a separate meeting with a large number of leading exporters, president Rajapaksa had said that there is criticism in the society regarding the contribution of the public and private banking sector for the economic revival of the country. 

It can be clearly seen that the relief granted by the government for the benefit of the public as well as for business enterprises were not passed down adequately to society. It is a matter that should be promptly addressed, he had said.

President Rajapaksa had emphasized that if the officials of the Central Bank or the State Banks do not take steps to implement the guidelines formulated by the government, he will not hesitate to remove them from their positions and continue to work with individuals who are ready to fall in line.

The president also said that he will take decisions without fear to deviate from conventional thinking and work methods to overcome the recession.