Mahendran’s 501 CB Transfer Orders Shaken Very Foundations of CB

 After Arjuna Mahendran assumed duties as its Governor  of the Central Bank on February 23, 2015, He has  given transfer order  to 14 heads of Department  along with 20 other key persons and the total number of transfers effected during that period stood at 501. This had shaken the very foundations of the Central Bank, said Assistant Governor and Secretary to the Monetary Board of the Central Bank H. A. Karunaratne, yesterday while  testifying before the Special Presidential Commission of Inquiry probing the alleged Bond Scam.Among those transferred were heads of four vital departments of the Central Bank and Mahendran’s action had caused dissent and dejection among the senior officers of the bank.

Two teams of officers following discussions among themselves had sought a meeting with the Governor and explained the situation to him.

He said that prior to Mahendran becoming Governor the practice had been to consult Deputy Governors and Departmental Heads prior to effecting transfers.

The Secretary said four officers including him had visited Mahendran at his official residence and explained the situation and Mahendran had assured all of them that he would rectify the mistakes, but that pledge had not been fulfilled.

Karunaratne told the Commission that he had worked under three Governors, namely Sunil Mendis, Ajith Nivard Cabraal and Arjuna Mahendran and transfers of that magnitude had never been effected previously.