Sri Lanka Central Bank Governor quits

Colombo: Sri Lanka’s Central Bank Governor Ajith Nivard Cabraal, who had resisted calls for an IMF bailout, resigned on Monday amid escalating protests in the island nation over the mounting economic woes. Cabraal, 67, announced his resignation in a Twitter post, after being elevated to this position less than seven months ago.

He stepped down after all members of Sri Lanka’s cabinet, apart from President Gotabaya Rajapaksa and his brother, Prime Minister Mahinda Rajapaksa, quit late on Sunday. “In the context of all Cabinet Ministers resigning, I have today submitted my resignation as Governor @ CBSL to the President Gotabaya Rajapaksa @GotabayaR #SriLanka #GoSL.” he tweeted.

In September 2021, he replaced WD Lakshman to take over for his second term as Central Bank governor. A f o r m e r state minister of finance and a Member of Parliament since August 2020, Cabraal had earlier served as the Governor of the Central Bank of Sri Lanka between 2006 to 2015.

In his second stint, the veteran policy-maker displayed his proclivity on reducing reliance on foreign debts and was reluctant to seek a bailout package from the International Monetary Fund despite the Sri Lankan economy going into a tailspin.

Cabraal leaves office at a time when inflation in Sri Lanka is at an all-time high. His resignation came hours after Sri Lankan President Gotabaya Rajapaksa on Monday removed his brother and Finance Minister Basil Rajapaksa from his post. According to the Central Bank estimates, inflation and prices of essentials have surged to 17.5 per cent in February this year.