Mahendran likely to Continue As CB Governor – Kiriella

As pressure mounts from all side for the removal of Central Bank Governor Arjuna Mahendran when his term expires on 30 June, United National Party big guns launched a staunch defence of the controversial official and insist that he would not be replaced as head of the country’s financial regulatory bank.

Leader of the House and Minister of Higher Education and Highways, Lakshman Kiriella told journalists at a press briefing yesterday that Mahendran was not likely to be replaced when his term ends this month.

He heard telling the press that “I am not the appointing authority. But I don’t think he will be replaced. There will be no change,” Kiriella told media personnel during a news conference that became quite heated over the Central Bank Governor’s issue.

Kiriella insisted that Mahendran had been ‘cleared’ by the Supreme Court, which dismissed a fundamental rights application filed by several good governance activists in May 2015.

“So far all the problems are related to allegations against the Governor. None of them have been proven,” Kiriella said, chuckling.

He said the controversy was created by a Goebbelsian effort by the media and members of Parliament to try Mahendran in a court of public opinion.

“This is what is called the Goebbels theory. If you say something enough times it becomes true.”

Kiriella added that he had faith in the decision of the Supreme Court.

The news conference was held one day before the issue was likely to be taken up at the Cabinet meeting today. Controversy has plagued the Central Bank Governor, with anti-corruption activists and Parliament oversight committees stepping up pressure on the Government to replace Mahendran when he concludes his 18 month term on 30 June.