UNP demands CB governor resign over hedging deal

Governor of the Central Bank Ajith Nivard Cabraal should respect the Supreme Court ruling against the hedging agreement by the Ceylon Petroleum Corporation and step down from his position immediately, demanded MP Lakshman Kiriella.

The head of the UNP's media division was speaking to the media in Colombo today (Dec. 02nd).

He said, "Central Bank governor Ajith Nivard Cabraal had written to CPC's former chairman Asantha de Mel on 10th January, 2007, directing him to start the hedging. Minister A.H.M. Fowzie had tabled the related paper to the cabinet on 13th January 2007. That means, the CB governor had ordered the CPC chairman to start the hedging even before the minister had tabled the cabinet paper."

"On a recommendation by the CB, the cabinet had approved the implementation of the hedging agreement without delay."

"The CB governor had made submissions to the cabinet on 06th September 2006 on steps to stabilize fuel prices in Sri Lanka in the face of increasing prices in the world market," said Mr. Kiriella.

"In this situation, we reiterate that the CB governor was wholly responsible for the hedging agreement. The CB should take responsibility for the loss to the entire country."

Speaking further, the UNP MP said, "The cabinet has also committed a serious mistake. It should have appointed a subcommittee to inquire into the hedging agreement before signing it, despite pressure by the CB governor. Had that been done, the recommendations of that committee would have made the agreement more positive. Therefore, the entire cabinet too, should take the blame for this."

"Had the government been in possession of systematic planning, petrol could have been given at Rs. 72 a litre," he said.

Mr. Kiriella added that a no-confidence motion would be moved against the cabinet and the public voice would be raised for the expulsion of the CB governor.