Cabraal says he alone is not responsible for economic crisis

26 November 2022 06:00 am - 30 - {{hitsCtrl.values.hits}}

A A A

By Sandun A. Jayasekara

Former Central Bank governor Ajith Nivard Cabraal in his recently released publication on the current economic meltdown ‘Amidst Economic Hit Men’ says that if anyone is to blame for the current predicament, it is not only him but the previous administration, previous cabinet, finance minister and the monetary Board of the Central Bank as all the fiscal and economic decisions were taken collectively and not by a single person.

The decision to default debt payment, keep the rupee steady, increase or cut tax and obtaining bilateral and multi-lateral loans and issuance of ISB were taken following the approval of the cabinet, the monetary Board and the finance minister.

None of these decisions have been taken by me single-handedly or arbitrarily. All of them were collective decisions,” he stressed.

Mr. Cabraal says that the announcement that ‘Sri Lanka is “bankrupt” with the temporary suspension of payments of all external debts’ on April 12 was the biggest betrayal of Sri Lanka after independence. President Ranil Wickremesinghe also on several occasions has said ‘Sri Lanka is bankrupt’ as financial crisis was ravaging the country’.

He claims that many enemy agents had worked on this conspiracy and their intention was to somehow bankrupt Sri Lanka and make the country kneel before the international community. He explains that these foreign forces and their local puppets tried their utmost to cause this bankruptcy through him when he was Governor, but because he did not fall for that trap, they have made him an “accused” for the “offence” of not bankrupting the nation. He says that he is therefore setting out hitherto unrevealed information about the “economic assassination” of Sri Lanka, and identify the real economic hit-men who carried out this mission.

Cabraal states that Sri Lanka’s debt challenges were aggravated by the forex borrowing in five years - 2015 to 2019, whereby the forex debt ballooned by a massive 65% from US$ 23.4 billion to US$ 38.7 billion. During that period, he refers to the net borrowing of US$ 10 billion in International Sovereign Bonds (ISBs) at interest rates over 7.0%. He also says the Government had borrowed another US$ 2.0 billion as “term loans” and got US$ 1.1 billion from selling the Hambantota Port. He then says the Forex Reserve by end-2014 was US$ 8.2 billion and asserts that the Forex Reserve should have been US$ 32.7 billion with the inflows, instead of US$ 7.6 billion by end 2019, had the Forex Reserve been better managed. He contends there would have been no crisis if such a reserve was available at the beginning of 2020.

Mr. Cabraal explains that the ISB settlement of US$ 500 million on January 18, 2022 was a Parliament-approved and budgeted debt repayment for 2022, and such payment could not have been stopped by him, even if he wanted to. He then asks as to whether those who claimed that Sri Lanka should not pay the forex debt, including the ISB of US$ 500 million, would now take responsibility for the repercussions that followed the debt default. He specifically asks whether they would be comfortable if Sri Lankan banks and investors who hold 16% of the ISBs of US$ 13,000 million lose a part of their money which would lead to the serious destabilization of the entire Sri Lankan banking system.

Order Gifts and Flowers to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Grocery, Kids Toys, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,Astrology, Courier/Delivery, Medicine Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka

Comments - 30

Truth Saturday, 26 November 2022 06:12 AM

In other words you guys collectively produced, directed and acted in the film 'BORU SHOW'.

Gunendran Saturday, 26 November 2022 06:46 AM

Come on you Maestro - Financial Genius. With all the full knowledge - yet you idiot/utter misfit gave your encouraging leadership quite enthusiastically in spite of worldwide warning of the impending disaster of your idiocy. Why couldn't you have adopted - do it right or get out. The fact is - smart rogues made a rash buck by placing you T/fool in this high position. I don't thin you would be offered even a book keeper's vacancy in future - after the prison term. Get ready you sinner.

Ranil said, so it happened Saturday, 26 November 2022 07:11 AM

Are you implying that Ranil said country is bankrupt so Ranil caused the bankruptcy? Is this the only name you remember? You should have resigned if you are not allowed to do your job, like Mr.Junaid Treasury Secy! The whole nation saw you dancing "follow the leader" behind Namal, holding his shoulders, in your night dress. You are a disgrace to the profession and should be jailed.

gama rala Saturday, 26 November 2022 07:18 AM

Yes true, you are not solely responsible for the rajapaksa criminal activities. But you are also involved in the crimes against the people of SL.

Sokrates Saturday, 26 November 2022 07:55 AM

As Central Bank Governor, Cabraal is primarily responsible for the bankruptcy of Sri Lanka, along with Gota, Basil and some Henchmen. Cabraal should never have been in this position as he does not have the relevant training nor the intelligence. He never went to university and had only learned bookkeeping. Just because he was a classmate from Mahinda he became governor. Had he realized that the orders of Basil and Gota were against the interests of the country, he should have refused to carry them out or he should have resigned. He, too, is one of those who spreads conspiracy theories and blames foreign forces and their agents. But nobody names these mysterious forces and their agents. No country is interested in a bankrupt Sri Lanka as one cannot do business with bankrupts.

Jude Saturday, 26 November 2022 08:30 AM

Hey Cabraal am gonna apply my Fifty percent fault theory yeah, 50% is your fault and other 50%, also your fault yeah!!

Sunil Saturday, 26 November 2022 09:44 AM

Of course, there were many other thieves in the picture, some far worse and more notorious than Cabral.

VJ Saturday, 26 November 2022 09:49 AM

Not convincing at all, you were placed in that position and given a cabinet minister status plus a pension and a salary to do what the Rajapakshes wanted. You may not be the only one but you were the key person responsible for the crisis. The truth will prevail. You repeatedly said we have enough dollars when we did not have. How about those Greek bonds and the hedging deals for which you were responsible. The bottom line is there is no accountability in this country.

ravin Saturday, 26 November 2022 09:50 AM

Everyone know recent past history. Best you can do is keep your gaps closed. Future generations will look after your Keith and keen.

Jude Saturday, 26 November 2022 10:00 AM

If it was in any other country, Cabraal Will be languishing in jail for long long time!!

tilak Saturday, 26 November 2022 10:32 AM

this low creature was thrown out of Renuka Hotel and Group for frauds. He was a accountant collecting school fees at British School- that is the best he is fit to do, an accounts clerk Started a Gold Pyramid scheme under his wife's name Jumped from UNP to SLFP (under MR) Appointed CBSL Governor with absolutlry no education or knowledge or training in Economics First thing he did as the CBSL Governor duirng his first term was to shut down the investigation unit that was invetsigating the Gold Pyramid scheme now let the people decide who is responsible

Tilak Saturday, 26 November 2022 10:55 AM

This is the man who said printing money doesn't cause inflation and went on to print trillions of rupees. A prostitute claiming to be a Virgin!

Tissa Fernando Saturday, 26 November 2022 11:46 AM

Cabral could have just taken the bold step of walking away from the post if he was not in agreement with the government. He is just trying to shift the accountability. Pathetic guy.

Coo Mawatha Saturday, 26 November 2022 01:04 PM

An incompetent sociopath, now becoming defensive! So he claims every decision was ‘collective’ and approved by the ‘parliament’. A 225 parliament, where 95 do not even have an O/L education, rest with a dubious education, crowded with corrupt goons, always voting for self interest! (We can thank the 6.9million for that). If decisions were calamitous, and he thought would lead to SLs bankruptcy, he could have quit, objected to the decisions. But he didn’t! Even after presiding over such catastrophic decisions, and still comfortably sitting on top of the food chain, he writes books and articles to profit from the misery he caused. Cabraal is not just incompetent, but a malignant narcissist. A classic arsehole, a fu..wit.

Dharmatileke Saturday, 26 November 2022 01:13 PM

Now he had written a book “please don’t buy this book” he is going to make money out of it sales, this man and few others made this country a “beggars paradise “ So they all should rot in it.

Kanishka.Tennakoon Saturday, 26 November 2022 01:44 PM

Evèn if mouth lies tongue does not . At least 16% of the sovereign bonds are held by Banks and investors of this country ? Who are they and where did they earn those $ ? On which ISBs do thèy hold ? What is the average price of their aquisition ?

Wije Saturday, 26 November 2022 01:53 PM

Before 2009 also he used to take % to remit funds overseas (convert SLRS to USD) illegally for big Corp in Sri Lanka .

700 rupee to one USD exporter estimate real rate Saturday, 26 November 2022 02:36 PM

The current and past Central Bank governors having abnormal moneratry policy compared to well working economy including nearby India. Cabraal also saying some mad things lately, saying while he was blamed for allowing float, those who advised him are now keeping away. And that he wants to set the fix at a much lower rate, something like 100 rupees per dollar saying now current fixed rate too high. Exporters estimate dollar worth more than 700 rupee and won't send back dollars from earning until there is fair exchange rate.

Karalasingam Sivalingam Saturday, 26 November 2022 02:58 PM

At the forthcoming elections the masses should reject all the previous members of parliament who were responsible for Sri Lanka to become bankrupt as per the book published by Cabraal former governor of Central Bank

Gota’s court jester Saturday, 26 November 2022 04:39 PM

Please take your ugly, thrice cursed face away from the public stage. If you appeared in public, you will probably be slippered and spat on! Don’t spout more lies. Even uneducated vagrants know your bare faces lies and clownish antics.

Concerned Citizen Saturday, 26 November 2022 05:41 PM

Only thing he got done as the Governor is to have his salary increased from Rs 150k to 400k and work out super pension with cabinet status. You are dam disgrace Cabraal you should be investigated thoroughly and put behind bars... bloody misfit. When we visited with a proposal to bring in foreign investment to the country for recycling plant your dump answer to it was advise your investor to purchase treasury bonds... GROBR

Coo Mawatha Saturday, 26 November 2022 06:24 PM

An incompetent sociopath, now becoming defensive! So he claims every decision was ‘collective’ and approved by the ‘parliament’. A 225 parliament, where 95 do not even have an O/L education, rest with a dubious education, crowded with corrupt goons, always voting for self interest! (We can thank the 6.9million for that). If decisions were calamitous, and he thought would lead to SLs bankruptcy, he could have quit, objected to the decisions. But he didn’t! “Had the Forex Reserve better managed, there would have been no crisis”, but was it not his job, to better manage the forex reserves? Even after presiding over such catastrophic decisions, and still comfortably sitting on top of the food chain, he writes books and articles to profit from the misery he caused. Cabraal is not just incompetent, but also a malignant narcissist. A classic arsehole, a f..kwit.

sugath Saturday, 26 November 2022 06:44 PM

One thing is true what he says about debt. Ranil's "Yahapalanaya" was solely responsible for the current predicement we are in today due to irresponsible forex borrowings.

joshua Sunday, 27 November 2022 12:09 AM

Cabraal acted as if he was a visionary economist but knew nothing. Now he has agreed to his faults. Yes, Cabraal is not to be blamed alone, but add the 7 brains and the SLPP goons for the mess they created. They all should be arrested for their sins. If they were in the private sector, they would have been unceremoniously kicked out immediately. Despite several complaints the accountancy body to which Cabraal belongs, also has not taken any action for professional misconduct and proved that they have no backbone.

L Jaya Sunday, 27 November 2022 02:54 AM

This is like a person who climbed a coconut tree to pluck and steal coconut. He too had an excuse when the owner questioned him. This is very similar to what Cabral explained

Sambo Sunday, 27 November 2022 10:38 AM

You say you alone are not responsible but you are a part of the problem and you should be prosecuted and sent to jail for what the people are suffering today.

Nandasena R Sunday, 27 November 2022 10:54 AM

Ha! Ha! what happened to your visionary economic theory? When things don't go right blame all and everyone except yourself. Then please return the salaries and corrupt monies you earned (every cent please) to the county's coffers. We may then see that you genuinely feel sorry for your stupid decisions that you alone signed off?

Gunapala Gonhetti Sunday, 27 November 2022 03:27 PM

If you have guts and principles, Name and Shame these people forced to do illegal activities and playing with money. What is your commission from those politicians? If you did not receive any commission, come forward!!

Banker Monday, 28 November 2022 11:14 AM

Cabraal was appointed Governor of the CB by MR to jointly rob the country and bring it to its current state.

Common Sense Friday, 02 December 2022 02:40 PM

By this statement itself, Ajith Nivard Cabral admitted that he was also partly responsible for the economic crisis that we are facing now. How a Chartered Accountant handles the Governor's position in a Central Bank of a country? It should have been given to an Economist with reputation.

Add comment
Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

Cabraal says he alone is not responsible for economic crisis

Comments - 30

Add comment

RECOMMENDED

‘Spike in blast fishing’ poses renewed threats to Sri Lanka’s marine ecosystems

UDA owned land in Thalawathugoda; UDA Minister Prasanna Ranatunga under the spotlight for forceful occupation of reserved land

Loss-making SMIB faces political pressure in recovering loans

Baltimore Bridge Collapse: MV Dali, SL authorities anchored in mystery?

Has Sri Lanka become a potential hub for the illegal wildlife trade?

Spotlight on Moragahakanda Development Project Moragolla villagers lose livelihoods and down to one meal a day

Ambitious Sri Lankan jobseekers ‘trafficked into Ukraine war zones’

Most Viewed in News

Former MP Palitha Thewarapperuma dies from electrocution

Uma Oya Development Project inaugurated

Racing event tragedy leaves seven dead including eight-year-old child

Two racing drivers arrested over Fox Hill tragedy

Complaint lodged over Piumi Hansamali's possession of Gota’s Range Rover

New Visa procedure implemented

MIRROR CRICKET

Is Chamari Athapaththu Sri Lanka’s greatest cricketer ever?

Athapaththu back atop ICC Women’s ODI Batting Rankings

Chamari Athapaththu sets big goal for T20 World Cup

How does CSK get best out of Pathirana?

TODAY'S HEADLINES

No footboard riding allowed, no liability for accidents: Railways Department

Six patients claim Rs.600 million from Keheliya and others for permanent loss of sight

SLPP, UNP initiates action for forming broad alliance

Here is the way!

Pakistan lose key players for last two T20Is against New Zealand

Sri Lanka secures third spot in South Asian Kurash Championship 2024

Athapaththu back atop ICC Women’s ODI Batting Rankings

Army forms committee to probe Diyatalawa Fox Hill Supercross accident