JO wants Mahendran to follow Rajan

21 June 2016 05:24 pm

Though the Governor of the Reserve Bank of India (RBI) had decided to step down because of criticisms, Sri Lankan Central Bank (CB) Governor continues to hold on to his post, amidst severe allegations and criticisms, the Joint Opposition charged today.

UPFA MP Bandula Gunawardane said Reserve Bank of India Governor Raghuram Rajan stepped down due to criticisms over his fiscal management, higher rates of loan interests, economic stability and inflation, followed by bad loans.

“But in here, Central Bank Governor Arjuna Mahendran is accused of day light robbery in the Central Bank. Not once but twice. The repercussions of these transactions are severe, which will result in a financial crisis. The Central Bank obtained Rs. 29 billion in March this year for a higher rate of 14. 23%. Even the International Monetary Fund (IMF) had warned about the high rates of interest. Moody’s had also ranked Sri Lanka’s economic outlook as negative,” he said. (Lahiru Pothmulla)