Dr. Indrajit Coomaraswamy excellent fit for the job
By Rathindra Kuruwita-2016-07-05
Dr. Indrajit Coomaraswamy was appointed as the Governor of the Central Bank on Saturday. A number of my friends, who campaigned for the removal of former Governor Arjuna Mahendran, have convinced themselves, and are now trying to convince others, that the new appointment was a victory of President Maithripala Sirisena.
According to their narrative, President Maithripala Sirisena realizing that the Central Bank staff had divided themselves into two camps, one supporting Dr. Nandalal Weerasinghe, the most senior CB Deputy Governor and his (the President's) favourite and P. Samarasiri, a loyalist of Mahendran and that appointing either Weerasinghe or Charitha Ratwatte, nominated by Prime Minister Ranil Wickremesinghe would lead to a serious political crisis, decided to appoint Coomaraswamy, who is well respected and is close to Wickremesinghe.
However, it is a well-known fact that the President was adamant that Dr. Nandalal Weerasinghe should have been appointed as the Governor of the Central Bank. It was Weerasinghe whom he had in mind when he Tweeted that he would appoint a new Governor, last Wednesday (29). The President's decision was well known to the ministers and that is why State Minister of Finance Lakshman Yapa Abeywardena stated, speaking at the Cabinet press briefing on the same day, said that someone 'experienced' will be appointed; Nandalal Weerasinghe is the most senior Deputy Governor. The President declined to appoint the Premier's nominee for the post of CBSL Governor, Charitha Ratwatte, twice and until Friday afternoon; a number of close associates of the President told me that the President will definitely appoint Weerasinghe. However, by late night they told me that Coomaraswamy would be appointed and insisted that it was a victory for the President as Ranil Wickremesinghe would be 'compelled' to accept him given how closely Coomaraswamy has worked with the Prime Minister. And the Prime Minister did not contest Coomaraswamy's nomination as he had done regarding Weerasinghe. Indeed, as I wrote in my article about Coomaraswamy's appointment on Sunday, the Prime Minister would be quite happy with Coomaraswamy's appointment.
However, it is a well-known fact that the President was adamant that Dr. Nandalal Weerasinghe should have been appointed as the Governor of the Central Bank. It was Weerasinghe whom he had in mind when he Tweeted that he would appoint a new Governor, last Wednesday (29). The President's decision was well known to the ministers and that is why State Minister of Finance Lakshman Yapa Abeywardena stated, speaking at the Cabinet press briefing on the same day, said that someone 'experienced' will be appointed; Nandalal Weerasinghe is the most senior Deputy Governor. The President declined to appoint the Premier's nominee for the post of CBSL Governor, Charitha Ratwatte, twice and until Friday afternoon; a number of close associates of the President told me that the President will definitely appoint Weerasinghe. However, by late night they told me that Coomaraswamy would be appointed and insisted that it was a victory for the President as Ranil Wickremesinghe would be 'compelled' to accept him given how closely Coomaraswamy has worked with the Prime Minister. And the Prime Minister did not contest Coomaraswamy's nomination as he had done regarding Weerasinghe. Indeed, as I wrote in my article about Coomaraswamy's appointment on Sunday, the Prime Minister would be quite happy with Coomaraswamy's appointment.
Coomaraswamy and Ranil: peas in a pod
Coomaraswamy was functioning as an advisor to the Ministry of Development Strategies and International Trade under Malik Samarawickrema, and was also appointed last week to a committee tasked to prepare a report on improving economic relations with the rest of Asia. Among the members of the above mentioned committee are Charitha Ratwatte, who Wickremesinghe insisted must replace Mahendran, R. Paskaralingam, one of PM's close allies and Arjuna Mahendran. Coomaraswamy also was involved in the Economic and Technological Cooperation Agreement (ETCA) with India, and is a firm believer that such an agreement would benefit Sri Lanka. Coomaraswamy is also a neoliberal economist who believes in de-regularization of capital markets and 'free trade'.
Given that the UNFGG administration, at least the UNPers in it, are adamant in pushing a trade agreement, that can be described as missionary or even sinister, with India, with a zeal and that it will have to impose a number of unpopular policies to adhere to conditions insisted by the IMF to grant us assistance in the coming years, Coomaraswamy would be an ideal Governor for the UNP. Any trade agreement with India would be controversial and unpopular as many fail to see any benefit Sri Lanka can gain with a second level Asian power that has a surplus of labour. The same is true with conditions imposed by the IMF.
Discipline and punish
It has been reported that exasperated by Prime Minister's insistence on appointing Charitha Ratwatte, the President has told Minister Malik Samarawickrema to ask the Prime Minister 'not to act as a child on this matter'. The childish behaviour referred to by the President is the tantrum thrown by Wickremesinghe after the events that transpired at the Central Bank on Wednesday (29.) After announcing that he will appoint a new Governor the President told his close allies that he will visit the Central Bank in the evening, talk to the Deputy Governors and appoint Nandalal Weerasinghe as the next Governor. He had not invited the Prime Minister to accompany him but after hearing of the President's decision, Wickremesinghe followed the President to the Central Bank and prevented the appointment of Weerasinghe. He also insisted that one of his protégées should be appointed as the Governor. And ultimately the President caved in and did not appoint Dr. Nandalal Weerasinghe, his pick from the beginning. And unlike him, Prime Minister Wickremesinghe was not banking on one candidate; he just wanted the Governor to be one of his protégés. And what is Coomaraswamy, if not a protégé of Prime Minister Ranil Wickremesinghe?
In June 2015, President Maithripala Sirisena dissolved Parliament to save his ally, Ranil Wickremesinghe, from embarrassment after the COPE led by D.E.W. Gunasekara threatened to put before Parliament a tier report on the first Treasury Bond scandal. By doing so Sirisena sacrificed a golden opportunity to pass 20A on electoral reforms which was another of his pet projects. And last year we have seen him let Wickremesinghe have his way over and over again. So using his own lingo, he has repeatedly given in to the tantrums of a naughty child, who has become increasingly making bigger demands.
Making the President change his mind about his pick as the CBSL Governor and ensuring the appointment of Coomaraswamy, who has similar economic and political opinions, was a victory for the Prime Minister. Those in the Pro-Sirisena camp can attempt to shape the narrative, so that it would look a victory for the President, but once again that doesn't change the fact that Wickremesinghe came out on top in this exchange.
Already the President has very little say in how the Sri Lankan economy is managed. Our economic policy is formulated and implemented by the Prime Minister and his associates, Malik Samarawickrama, R. Paskaralingam and Charitha Ratwatte. Coomaraswamy who shares their economic and political vision, minus the embarrassing scandals, is an excellent fit to this club.
Rathindra can be contacted via rathindra984@gmail.com
