Six Reasons Why Central Bank Job Won't Be A Cakewalk For Coomaraswamy

!) He has to give leadership to a highly politicized Central Bank, largely thanks to the two Governors before him, who formed their own support bases within the bank. The current state of affairs at the Central Bank may handicap the 'economist' and inspire the 'diplomat' in Coomaraswamy (One need not forget that his father, Raju Coomaraswamy, was a well-known diplomat back in the day!) 

2) In his address to the Central Bank officials on Monday he said he had been given the President’s blessings to carry out the duties his job without any fear. This could set things on a collision course with Finance Minister Ravi Karunanayke, unless managed. Karunanayake is one of the bulls in the national unity government china shop. 

3)  Central Bank and the Finance Ministry should work hand in glove set the country’s economic policies on the right track. But the temperaments of Coomaraswamy and Karunanayke remain poles apart! On the other hand, the State Minister of Finance, Lakshman Yapa Abeywardena is President Sirisena's man and this may lead to the formation of two conflicting power blocs within the ministry. A  possible case of "coming colours not good"??

4) The Central Bank is placed under Prime Minister Ranil Wickremesinghe’s ministry while the country’s fiscal policies will be decided by the Finance Ministry, which is under Ravi Karunanayake. This could result in monetary (decided by the Central Bank) and fiscal policies heading in two different directions.

5) Since Coomaraswamy is an advocate of free markets and trade and, a known supporter of the controversial ETCA with India, much opposition could be expected from the professional bodies like the GMOA against him in the future for holding the top post.

6) The limited political space—as a coalition government is in power— to carry out broad monetary policy actions, will be a roadblock for Coomaraswamy. On the other hand, the demanding private sector wants him to perform miracles to rescue the country from the current economic mire 

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