Sri Lanka Names Economist Coomaraswamy as Central Bank Chief
(Bloomberg) -- Sri Lanka named economist Indrajit Coomaraswamy central bank governor, days after Arjuna Mahendran's term ended on June 30 following allegations of nepotism.
Coomaraswamy, a former central banker and economic affairs director at the Commonwealth Secretariat, was picked after “consulting all parties relevant”, President Maithripala Sirisena said on Twitter. The new governor will probably be in office for a year, following which the government will “reconsider,” junior Finance Minister Lakshman Yapa Abeywardena said on June 29.
The incoming chief will have to navigate the central bank through a $1.5 billion program from the International Monetary Fund. While some conditions of the loan have been termed “ambitious” by Moody's, investors have cheered the development, boosting the rupee about 2.5 percent from its record low hit in March.
Mahendran, a former HSBC Holdings Plc wealth manager, had said he wouldn't seek an extension until cleared of allegations of nepotism. The government's failure to name his successor before the end of June left the central bank governor-less for the first time in its 66-year history.
Mahendran has faced allegations that his son-in-law -- head of a local brokerage -- benefited unduly from sovereign bond sales. He was also accused of lavish personal spending on his official expense account. A government panel probing the debt auctions last year found no involvement by Mahendran and the central bank rejected allegations that he misused public funds.
However some analysts -- such as Sasha Riser-Kositsky at Eurasia Group -- say Mahendran was caught between three-way tensions within factions of Sirisena's party and its coalition partner.
The Committee on Public Enterprises, which monitors financial discipline in state organizations, opened a fresh investigation in 2016 and anti-corruption activists held street protests seeking Mahendran's ouster.
To contact the reporter on this story: Anusha Ondaatjie in Colombo at anushao@bloomberg.net. To contact the editors responsible for this story: Daniel Ten Kate at dtenkate@bloomberg.net, Jeanette Rodrigues, Sunil Jagtiani
-
Unhedged Position: Can India See An Indonesia-Style Time Correction?
The Nifty is trading below levels it first clocked in 2024. Is there, then, as I have suggested in the headline, potential that the current time correction drags on painfully for the next three-five, even ten years?
-
Navigating Friction And Energy Realities: An Analysis Of Marco Rubio's October Visit To India
Occurring at a critical juncture marked by stalled trade negotiations and escalating geopolitical pressures over global energy supplies, the visit offers a profound window into modern US-India relations.
-
India Exports Capital. Why Not Export Trusteeship?
The big question, then, is whether India can build an institution that global borrowers, investors, banks, and lawyers can trust, even without an Indian connection.
-
France's Economy & Politics Are In Crisis | The Reason Why
Let's look at how the French economy and politics evolved under Nicolas Sarkozy, Franois Hollande and Emmanuel Macron.
-
You May Inherit The Business. You Must Earn Its Credibility.
Succession tests the founder's ability to share authority as much as it tests the next generation's readiness to assume it.
-
Signing Deals Is One Thing; Making Them Work Is Another | The Week In Whys
Sometimes, things don't turn out as planned. Indian companies have lost some bids to rivals, some projects won't produce until 2030.
-
FOMC Wall, PERM Suspension, Hospital Stocks | Talking Points This Week
A PERM suspension would directly affect green-card sponsorship rather than H-1B visas, so the near-term earnings impact could remain relatively limited. The key question is whether this marks a new phase in US scrutiny of Indian IT.
-
Everything, Everywhere, All At Once: Dalal Street's Week To Forget | Joining The Dots
Visa curbs, a Starlink spat and cancer drug caps: what connects this week's shocks for Indian markets
-
India Is Going Abroad For Critical Minerals. But It May Take Years To Pay Off | The Reason Why
Although India's steps are in the right direction, they remain modest compared with India's growing dependence.
-
When Everyone Has AI, What Gives You An Edge?
India's young workforce is entering an uncertain world of work where powerful AI tools are becoming widely accessible. The advantage will belong to those who combine deep expertise with digital fluency, and the distinctly human capabilities that technology cannot manufacture.
