The Money Illusion – Infallibility Of Central Banks
By Sarath de Alwis –May 15, 2015
Sarath De Alwis
“On the road from the city of skepticism, I had to pass through the valley of ambiguity.” – Adam Smith
It happened on Wednesday 13th of May . The Supreme Court refused to grant leave to proceed with the fundamental rights violation petition filed by good governance activists Dr.G. Usvatte-Arachchi , Dr. A. C. Visvalingam and Mr. Chandra Jayaratne. On the same evening, the Minister of Finance Mr.Ravi Karunanayake appeared on the TV channel Swarnavahini in the program ‘Mahajana Sevaya Pinisai”.
Responding to a question from the anchor on the Bond controversy, the Minister of Finance insisted that the entire transaction was not only above board but was manifestly proper. He stressed that it was in sharp contrast to the dubious dealings under the earlier CB governor Ajith Nivard Cabraal.
He expressed indignation at the failure of the three distinguished, learned and worried citizens to resort to court action such as their present failed endeavour, when the former Governor of the Central Bank was up to no good.
The Minister of Finance constructed the refusal of the Apex court to grant leave to proceed as a clear vindication of Governor Mr. Arjuna Mahendran. Many Sinhala News Papers and Sinhala TV news tickers too announced the dismissal of the petition against the Governor of the Central Bank. None of the news reports recall that the plea was for an investigation by an expert panel to determine if there had been a fair and transparent procedure with parity on information.
The Central Bank Governor – Arjuna Mahendran
This writer asked Dr.Usvatte-Archchi the same question raised in rhetoric by the combative Minster of Finance. His sardonic reply was ‘May be the Minister has not read what I have been writing about the Former Governor Mr. Cabraal and his style of managing the monetary policy. With infectious nonchalance he added that in addition to his copious writing on the mismanagement under the previous governor, he had also resigned in protest from a committee on monetary policy appointed by the previous regime. Professor A.V.De S Indraratne who was also in it had resigned a few months later. Read More
