Cabraal’s move incurs Rs.4490 million loss to CB

SATURDAY, 24 OCTOBER 2015

It is stated that Rs.4490 million has been made available to the Central Bank by the Treasury to pay compensation to account holders of Golden Key that crashed due to the moves of former Governor of Central Bank Ajith Nivard Cabraal.

This large amount of money has been made available on two occasions and cabinet approval too has been obtained for the move. Approval has been sought to get the sum of money as a loan to Central Bank from the Treasury.

Mr. Sunil Mendis, who was the Governor of the Central Bank before Ajith Nivard Cabraal, had declared that Golden Key was an illegal financial institute. When Mr. Mendis resigned former President Mahinda Rajapaksa appointed Cabraal as the Governor of the Central Bank. Mr. Cabraal, instead of taking action against Golden Key which had been declared an illegal institute, merely ignored taking any action.

In 2009 Golden Key crashed and a large amount of money is spent to pay compensation to account holders.