Tribute

Dr. H.N.S. Karunatilake

Dr. H.N.S. Karunatilake, former Governor of the Central Bank of Sri Lanka passed away, peacefully, at his residence in Colombo on Sunday, 24 January 2010. His funeral took place on Thursday, January 28, amidst a large and distinguish gathering of current and former Central Bank staff, professional and his relatives.

Dr. Karunatilake was the Governor of the Central Bank for relatively a short period of nearly three and a half years from 1988 to 1992.

However, his whole career that began in 1953 had been with the Central Bank, where he held senior positions like Director of Economic Research and Senior Deputy Governor, prior to his appointment as Governor. After relinquishing duties as Governor in July 1992, he was appointed as an Advisor on Banking and Economic Affairs to the Ministry of Finance and his long career in the public sector ended with the retirement from this post in 1994.

His tenure as Governor, though short in length of time was characterised by many a significant developments in the Central Bank, mostly resulting from progressive measures taken on his own initiative. The activities of the Bank were strengthened and focused in line with its objectives as enumerated in the statutes.

Institutional and capacity building within and outside the Central Bank was given high priority. Central Bank's commitment to development work was intensified and regional offices were directed to play an active role in facilitating the extension of credit to agriculture, small and medium enterprises and cottage industries and for generating self employment opportunities through banks and other financial institutions. As part of this effort, network of the then Regional Rural Development Banks were expanded to areas that were not adequately covered for delivery of credit and other banking services.

Dr. Karunatilake, a graduate in economics from the University of Peradeniya in 1952, proceeded to London School of Economics for his postgraduate studies and obtained MSc in Economics in 1955. Subsequently, at Harvard University he obtained a MA and MPA and in recognition of his academic achievements, he was also appointed as a research fellow at Harvard University. He obtained his PhD from University of London.

He was an outstanding scholar and a prolific writer who has contributed in no small measure to economic literature by way of several books, articles and book chapters, mainly on the economy of Sri Lanka, published over a period of nearly 50 years.

My memory traces back to early 1970s when I first met Dr. Karunatilake while I was a student at University of Colombo.

He was a visiting lecturer in Economics and I attended the lectures conducted by him on comparative banking systems and international finance.

Few years later, I established professional contacts with him while he was the Director of Economic Research at the Central Bank of Sri Lanka where I began my career as a young Economist in 1976.

Besides my professional affiliations with him at the Central Bank, I worked very closely with him in the SLEA as General Secretary while he was the President.

The SLEA was formed in 1985 and its founder President was Dr. Gamini Corea. Dr. Karunatilake and I were both founder members. I was elected to the post of General Secretary in 1988, while Dr. Corea was President.

In the subsequent year, Dr. Corea stepped down and Dr. Karunatilake was elected as President and he continued for nearly 10 years as President of the SLEA.

During his tenure as president, SLEA was very active and its publication, the Sri Lanka Economic Journal was issued regularly on biannual basis, in addition to a special series of publications on the economy of Sri Lanka.

Several seminars and public lectures were conducted on many themes of contemporary significance to the economy of Sri Lanka by the SLEA, under his leadership and guidance. Dr. Karunatilake was known for his strong personality of an exceptional nature and for being forthright and fearless. He had his own style of doing things characterized by excellent time management and remarkably high efficiency in finishing any task he undertook to do.

He was a patriot and a devout Buddhist. Even after is retirement, he dedicated his full time to the Central Bank for which he served for nearly 40 years with highest respect and regard.

His own publication "Fifty Years of Central Banking" to mark the 50th anniversary of the Central Bank provides ample evidence for his commitment. He is remembered for the great service rendered to the Central Bank and the country.

May he attain the eternal bliss of Nirvana.

K.G.D.D. Dheerasinghe

Deputy Governor

Central Bank of Sri Lanka