Central Bank is not Cabraal only, says Governor

•  But tells critics wishing to throw brickbats to target him and not the team of 656 qualified professionals in the bank

Governor Nivard Cabraal on Wednesday said that Central Bank was not only himself, but rich with a team of 656 highly qualified professionals, and wanted critics wishing to throw brickbats however target him than his staff.

Central Bank Governor Nivard Cabraal – Reuters

This remark, perhaps aimed at the Opposition, was made by Cabraal during his comprehensive presentation on the Central Bank’s Road Map for 2013 and beyond.
“The Central Bank is not Cabraal only,” the Governor said, adding that the monetary authority was empowered with 656 highly qualified professionals, including 133 with CA, CIMA, ACCA and CMA qualifications, 27 with law, 20 with Institute of Bankers Sri Lanka, 11 BCS, two CFAs and three AAT.
Going a step further, the Road Map document also illustrated that there are three PhD holders plus professionals, six PhD holders, 129 holding Masters, 40 Masters plus professionals, 325 first degree holders, and 104 first degree plus professionals.
“We have got a very formidable team and that has helped the Central Bank to deliver consistently,” Cabraal said, adding, “As Lord Buddha said, one must be surrounded by people with wisdom and intelligence. I am very proud of the team at the Central Bank. Those who wish to throw brickbats can do so at me and not at my team.”
Given that prior to the presentation of the 2013 Road Map, UNP MP Harsha de Silva, a vocal critic of Governor, had literally torn apart the 2012 version as being directionless and off-track, Cabraal did make some inference prior to his presentation.
Cabraal clarified that as in the case of previous road maps, what would be presented were estimates, which would often be revised.
“The IMF revises its estimates thrice a year, several others do same. In Sri Lanka too we do that,” he said.
“People who don’t understand this reflect themselves and don’t seem to understand how estimates are made. Hope they will learn in the process,” said Cabraal, in an apparent reference to UNP MP de Silva’s viewpoint, which was splashed in the Daily FT front page on the day of the 2013 Road Map presentation.
Making his own assertion, the UNP MP illustrated how various projections had gone miserably wrong in 2012 Road Map, but expressed hope for a wiser Cabraal so as to not present a make-believe story.
In his initial observation on the 2013 Road Map presented, Dr. de Silva on Wednesday admitted: “It seems more realistic, indicating it is possible to learn from past mistakes.”
However, the UNP MP also acknowledged the “hard work of the professional staff of the Central Bank” and said that they must be commended for developing such a comprehensive presentation and going into great technical detail. “That is what is expected,” de Silva added. Nevertheless, the UNP MP did raise some questions over whether or not GDP per capita actually increased in 2012.
During his Road Map presentation, Governor Cabraal, noting that the Central Bank on a continuous basis had diligently delivered on its ‘growth with stability’ tagline since 2007, said that to support policy analysis, capabilities of the staff would be further strengthened.
He said that the human capital of the Central Bank manages and/or regulates the Rs. 1.3 trillion balance sheet of the Central Bank, the monetary policy to ensure economic and price stability, financial system stability by regulating and supervising a financial sector with over Rs. 6 trillion assets, the public debt of Rs. 6.1 trillion, the official international reserves of over $ 6.8 billion, EPF funds of over Rs. 1.1 trillion, over Rs. 300 billion in currency circulation, the payment platform that facilitates transactions totaling over Rs. 65 trillion, and properties and assets worth Rs. 23 billion.
Cabraal also said the Government would be getting a record Rs. 33 billion as profit transfers from the Central Bank in 2012. He said increased profit transfers from the Central Bank had greatly assisted the revenue streams of the Government.
“Between 2006 and 2012, the Central Bank has been able to appropriate Rs. 112 billion to the Government from the surpluses the bank generated, mainly from its international operations,” Cabraal said. It was disclosed that for 30 years (between 1976 and 2005), the amount had been Rs. 60 billion.
The Governor also said that reserves management of the Central Bank had been commended by the Auditor General as “remarkable,” with $ 430 million earned in 2011, whilst in 2012 it is estimated at $ 220 million, making the average for three years amount to over $ 200 million.

FT  QuickTake

What Central Bank
manages/regulates
Apart from the monetary policy to ensure economic and price stability and financial system stability the Central Bank also manages/regulates the following

•  Rs. 1.3 trillion balance sheet of the Central Bank
• Financial sector with over Rs. 6 trillion assets
• Public debt of Rs. 6.1 trillion
• Official international reserves of over $ 6.8 billion
• EPF funds of over Rs. 1.1 trillion
• Over Rs. 300 billion in currency circulation
• Payment platform that facilitates over Rs. 65 trillion transactions
• Properties and assets worth Rs. 23 billion