Neck deep in debts: CBSL has clever officials, says the Governor

At the monthly media briefing held on Thursday, followed by the Monetary Policy Review, at the Central Bank, Governor Ajith Nivard Cabraal defended his team when asked by a journalist whether he was considering hiring an international consultant to 'restructure' the debts of the country.

The journalist's question came in the background of the country facing challenges to honour its debt repayment commitments next year, in the wake of mounting debt-servicing commitments that are coming up. These include a USD 500 million bond in January, followed by USD one billion of debt that matures in July. The Central Bank's foreign reserves were USD 2.7 billion last month.

By pointing out to the Deputy Governors and senior Central Bank officials who were seated alongside him, Governor Cabraal asked: "Why, do you think these people are not good enough? All these people with PhDs, and complete knowledge on the country's finances. You have no faith in them and you want to get a person you do not know from a different country to come and do that?"

Governor Cabraal said some of the local firms also provided debt structuring services on a daily basis and the subject was nothing new for Sri Lanka to hire a foreigner to come and give lessons on how to restructure the debts.

"I have full faith in the team we have. These are Sri Lankans who have gone to the best universities, and have the best experiences to tackle these matters. Some people when think an item or work seems flowery, we have to get someone from abroad to do it. We have all the competence we require," Governor Cabraal said.

The Governor did not stop there but went on. He said currently at the Central Bank, there were more than 30 PhD holders, more than 200 people with Masters degrees in addition to being chartered accountants or lawyers and professionals from nearly every other discipline.

One scribe was heard telling a colleague; "Wonder why we are in such a plight with all these clever people", only to be told; "That is because we elect even cleverer people."