From bomb disaster to bond disaster: How to restore the lost reputation of the Central Bank
The Central Bank was left severely damaged after being struck by the deadly terrorist bombing of 1996
March 23, 2015
Central Bank being hit by two disasters
In a recent conversation, a top central bank officer mentioned to this writer, partly in jest and partly with seriousness, that the Central Bank had to face two disasters in the recent past. One was the ‘bomb explosion’ in front of the Central Bank building in early 1996. The other was the ‘bond explosion’ within the Central Bank building in early 2015.The bomb explosion had brought the bank’s operations to a complete halt, posing a serious threat to its reputation. The bond explosion had damaged the bank in the reverse order: first it had dented the bank’s reputation and then made it legally non-functional by converting it into a headless institution. This is because the law does not provide for an acting arrangement for the Governor when he is in Sri Lanka. As such, the forced leave of Governor’s absence is not recognised by law and all decisions made in the bank without him being present are subject to be challenged in courts of law.
