Ajith Cabraal

Ajith Nivard Cabraal
අජිත් නිවාඩ් කබ්රාල්
அஜித் நிவர்ட் கப்ரால்
Governor of the Central Bank of Sri Lanka
In office
15 September 2021 – 4 April 2022
Preceded byW. D. Lakshman
Succeeded byNandalal Weerasinghe
In office
1 July 2006 – 9 January 2015
Preceded bySunil Mendis
Succeeded byArjuna Mahendran
State Minister of Money and Capital Markets and State Enterprise Reform
In office
12 August 2020 – 13 September 2021
Secretary to the Ministry of Plan Implementation
In office
1 November 2005 – 1 July 2006
Member of Parliament
for National List
In office
2020–2021
Succeeded byJayantha Ketagoda
Personal details
Born (1954-12-14) 14 December 1954 (age 70)
Tangalle, Ceylon
NationalitySri Lankan
Political partySri Lanka Podujana Peramuna
Other political
affiliations		Sri Lanka People's Freedom Alliance
United People's Freedom Alliance
United National Party
SpouseRoshini Cabraal
ResidenceColombo
Alma materSt. Peter's College, Colombo
ProfessionChartered Accountant
Websitewww.ajithnivardcabraal.com

Ajith Nivard Cabraal (Sinhala: අජිත් නිවාඩ් කබ්රාල්) (born 14 December 1954) is a Sri Lankan accountant and politician who was also the 16th Governor of the Central Bank of Sri Lanka.[1] He is also the former State Minister of Finance, Capital Markets and State Enterprise Reforms and a former national list member of parliament from 2020 to 2021. He served as the Governor of the Central Bank of Sri Lanka, holding the post from 1 July 2006 until his resignation on 9 January 2015.[2][3] He again became the Governor of Central Bank of Sri Lanka in September 2021, replacing W. D. Lakshman,[4] and resigned again in April 2022.[5][6]

Early life and education

Born in Tangalle to Dr Leslie Cabraal, a medical practitioner and Trixie Cabraal; he had four siblings. Cabraal was educated at St. Peter's College, Colombo, and was qualified as a Chartered accountant from the Institute of Chartered Accountants of Sri Lanka.[citation needed]

Private sector career

Cabraal started his career as an accountant in the private sector and established a management consulting firm called the Cabraal Consulting Group specialized on corporate governance (strategic planning, mediation) and turnarounds. In 2000, he gained an Eisenhower Fellowship.[7]

Political career

Western provincial council

He started his political career as a member of the United National Party when he contested the provincial council elections in 1999 and was elected to the Provincial council of the Western Province, a position he held until 2004.[8]

Chief economic advisor

Having first met Mahinda Rajapaksa, who was studying law at Sri Lanka Law College when Cabraal was an accountancy student, he quickly became a close confidant Rajapaksa after the latter's appointment as Prime Minister Rajapaksa in 2004, and became his chief economic advisor.[9][2] In 2005, he left the private sector and was appointed Secretary to the Ministry of Plan Implementation.[10][11] In February 2006, Cabraal was involved in talks with the Tamil Tigers in Geneva.[10]

He was president of the Institute of Chartered Accountants of Sri Lanka and also held the positions of President of the South Asian Federation of Accountants.[12]

Governor of the Central Bank - first term

On 1 July 2006, Cabraal was appointed governor of the Central Bank of Sri Lanka by President Rajapaksa, for a period of four years. He was given an extension of six years from July 1, 2010, to June 30, 2016.[8] During his period as the Governor he also functioned as an Alternate Governor of the International Monetary Fund, the Chairman of the South East Asian Central Banks Research and Training Centre (SEACEN) Board of Governors, and the Chairman of the SAARC Central Bank Governors Forum.[13] Following the 2015 presidential election, he resigned on 9 January 2015 so that the new President of Sri Lanka can appoint a new Governor of the Central Bank of Sri Lanka. He was accused of financial misappropriation following investment in Greek sovereign bonds which resulted in a major loss to the government during his first term.[14]

From December 2019 to August 2020, Cabraal was a senior advisor to the prime minister on economic affairs[15] and was appointed as a board member of the "Api Wenuwen Api" fund on 21 January 2020 under the Ministry of Defence.[16]

State Minister of Money and Capital Markets and State Enterprise Reform

Cabraal was appointed to the Parliament of Sri Lanka from the national list of the Sri Lanka Podujana Peramuna after the 2020 Sri Lankan parliamentary election. He was thereafter appointed State Minister of Finance, Capital Markets and State Enterprise Reforms by President Gotabaya Rajapaksa in August 2020 serving under the Minister of Finance Mahinda Rajapaksa. He also functions as a member of the Committee On Public Enterprises (Sri Lanka)[17] and the Ministerial Consultative Committee on Finance.[18] He resigned as state minister and member of parliament on 13 September 2020 to take the post of governor of the central bank.[19][20][21][22]

Governor of the Central Bank - second term

Main article: Sri Lankan economic crisis (2019–Present)

Cabraal assumed his second term as governor of the central bank 15 September 2021 at a time Sri Lanka was facing a major debt crisis.[23][24] He requested for and gained cabinet rank as the Governor of the Central Bank.[25] During his tenure, Central Bank was engaged in printing in excess of trillions of money to finance the budget and economic crisis.[26][27][28] During his tenure, CBSL allegedly printed Rs. 22.27 billion rupees overnight on 14 March 2022.[29]

Cabraal opposed an IMF bailout in favor of a homegrown solution for the debt crisis.[30] Having depleted foreign currency reserves and gold reserves to boost the Sri Lankan Rupee and repayment of sovereign bonds, the central bank free floated of the currency in early March which saw a 30% depreciation of the Rupee against the dollar in days following major shortages of fuel, food and medicine.[31][32][33]

On 4 April 2022, he resigned from his position as CBSL governor amid the growing protests over economic crisis.[34]

Conviction of economic mismanagement

On 7 April 2022, the Colombo Magistrate Court issued an order preventing Cabraal from leaving Sri Lanka until 18 April 2022.[35] The court order was issued on the basis of a case filed by political activist Keerthi Tennakoon against Cabraal regarding misappropriation and misuse of public funds which led to a massive economic crisis in Sri Lanka.[36]

Cabraal along with the Rajapakasha brothers and other senior officials were found guilty of economic mismanagement between 2019 and 2022 by the Supreme Court of Sri Lanka which stated on 14 November 2023 that the respondents have breached the fundamental rights to equal protection of the law in terms of Article 12(1) of the Constitution in a fundamental rights petition filed by filed by Transparency International Sri Lanka (TISL) and other four activists.[37] [38][39]

References

  1. ^ "Ajith Nivard Cabraal appointed as CBSL Governor". Sri Lanka News - Newsfirst. 13 September 2021. Retrieved 14 September 2021.
  2. ^ a b "PROFILE-Sri Lanka's Central Bank Governor Ajith Nivard Cabraal". Reuters.com. Reuters. 22 February 2011. Retrieved 30 December 2017.
  3. ^ "Press Release: Governor Ajith Nivard Cabraal – 2006 to 2015" (PDF). CBSL.gov.lk. Central Bank of Sri Lanka. Archived from the original (PDF) on 6 July 2016. Retrieved 30 December 2017.
  4. ^ "Ajith Nivard Cabraal appointed CBSL Governor once again". www.adaderana.lk. Retrieved 14 September 2021.
  5. ^ "Sri Lanka central bank governor submits resignation amid crisis". BBC News. 4 April 2022. Retrieved 4 April 2022.
  6. ^ "Sri Lankan central bank governor resigns". Reuters. 4 April 2022. Retrieved 4 April 2022.
  7. ^ Multi nation program fellows Archived 2012-05-02 at the Wayback Machine, Eisenhower Fellowships Sri Lanka.
  8. ^ a b Perera, K. K. S. "Forensic prompts Cynics; Ignores Basics: Nation Faces the Music". Daily Mirror. Retrieved 10 September 2021.
  9. ^ Bahree, Megha (29 April 2010). "Sri Lanka: Ready For Business". Forbes.
  10. ^ a b "New central Bank Governor assumes duties today". Archived from the original on 25 July 2011. Retrieved 24 February 2010.{{cite web}}: CS1 maint: bot: original URL status unknown (link), press release of Ministry of Finance & Planning, 3 July 2006.
  11. ^ "|| Financial". archives.dailynews.lk. Retrieved 14 September 2021.
  12. ^ "Chartered accountants felicitate State Minister of Finance Cabraal". www.ft.lk. Retrieved 14 September 2021.
  13. ^ "State Minister of Money & Capital Market and State Enterprise Reforms - HOME". oldportal.treasury.gov.lk. Retrieved 14 September 2021.
  14. ^ Dr. D.B.Nihalsingha. "The Greek tragedy: Drowning in debt Sri Lankan implications By". Sunday Times. Retrieved 14 March 2022.
  15. ^ "Nivard Cabraal appointed senior advisor to Sri Lanka PM". EconomyNext. 28 November 2019. Retrieved 14 September 2021.
  16. ^ "Cabraal appointed board member of 'Api Venuwen Api' fund". The Morning - Sri Lanka News. 21 January 2020. Retrieved 14 September 2021.
  17. ^ "Parliament of Sri Lanka - Committee on Public Enterprises". www.parliament.lk. Retrieved 14 September 2021.
  18. ^ "Parliament of Sri Lanka - Ministerial Consultative Committee on Finance". www.parliament.lk. Retrieved 14 September 2021.
  19. ^ "Parliamentarian Ajith Nivard Cabraal resigns from his position as a Member of Parliament". news.lk. Retrieved 16 September 2021.
  20. ^ "Nivard Cabraal resigns from Sri Lanka parliament ahead of being made CB chief". EconomyNext. 13 September 2021. Retrieved 14 September 2021.
  21. ^ "Cabraal hands in letter of resignation". www.adaderana.lk. Retrieved 14 September 2021.
  22. ^ "Cabraal to return to CBSL as governor on 15th Sept, assures to uplift economy". Sri Lanka News - Newsfirst. 13 September 2021. Retrieved 14 September 2021.
  23. ^ "Cabraal assumes duties: Reveals first & urgent priority". newswire.lk. Retrieved 16 September 2021.
  24. ^ "President appoints Ajith Nivard Cabraal as new Central Bank Governor". NewsWire. 13 September 2021. Retrieved 14 September 2021.
  25. ^ "CBSL Governor given Cabinet rank, goes up in Table of Precedence". The Financial TImes. Retrieved 11 March 2022.
  26. ^ "Cabraal reveals how much money Sri Lanka printed in 2021". NewsWire. 14 January 2022. Retrieved 4 April 2022.
  27. ^ "Money printing is like drastic treatment to a major illness - Ajith Nivard Cabraal - Opinion | Daily Mirror". www.dailymirror.lk. Retrieved 4 April 2022.
  28. ^ "CB likely to continue money expansion, direct controls | Daily FT". www.ft.lk. Retrieved 4 April 2022.
  29. ^ "Central Bank prints Rs. 22.27 bn overnight". The Morning - Sri Lanka News. 15 March 2022. Retrieved 4 April 2022.
  30. ^ Bala, Sumathi (24 January 2022). "Sri Lanka's central bank governor says country does not need IMF relief amid inflation concerns". CNBC. Retrieved 4 April 2022.
  31. ^ "Sri Lanka does not need the IMF at the moment, no default: Minister Cabraal". economynext.com. Retrieved 11 March 2022.
  32. ^ "Sri Lanka to start debt restructuring discussion with IMF – Reuters". economynext.com. Archived from the original on 11 March 2022. Retrieved 11 March 2022.
  33. ^ "CB chief sees negative fallouts from IMF deal". island.lk. Retrieved 11 March 2022.
  34. ^ "Sri Lanka central bank Governor Nivard Cabraal resigns". EconomyNext. 4 April 2022. Retrieved 4 April 2022.
  35. ^ "Court prevents Cabraal from traveling overseas". Sri Lanka News - Newsfirst. 7 April 2022. Retrieved 8 April 2022.
  36. ^ "Court imposes travel ban on Cabraal after activist Keerthi Tennakoon files case | Daily FT". www.ft.lk. Retrieved 8 April 2022.
  37. ^ "Sri Lanka top court rules Rajapaksa brothers guilty of economic crisis". France 24. 14 November 2023. Retrieved 14 November 2023.
  38. ^ "Sri Lanka: Rajapaksa brothers among 13 leaders responsible for crisis". BBC News.
  39. ^ Sooriyagoda, Lakmal. "Mahinda, Gota, Basil and others responsible for economic crisis -SC". Daily Mirror. Retrieved 20 November 2023.