Sri Lanka appoints new central bank governor

Indrajith Coomaraswamy, 66, was appointed after protests against the incumbent Arjuna Mahendran

Sri Lanka on Saturday appointed a new central bank governor after protests by the opposition against Prime Minister Ranil Wickremesinghe's handpicked nominee for the post.

"We welcome the appointment of a well respected professional," joint opposition leader Dinesh Gunawardena said.

Indrajith Coomaraswamy, 66, was appointed by President Maithripala Sirisena after weeks of protests by civil society activists and the opposition against the incumbent Arjuna Mahendran.

Mahendran, also a Tamil like his successor, was brought in from Singapore to head the central bank with the victory of Sirisena in January 2015.

He was soon accused of conflict of interest as a firm linked to his son-in-law was involved in an alleged scam in the sale of central bank bonds. Mahendran was suspected of handing him inside information in bond sales.

Wickremesinghe had defended his nominee against accusations and said he could not be removed without a proper investigation.

Mahendran was under fire for bad management of the local economy and there were growing calls for his sacking.

Coomaraswamy is a former national rugby captain who had served in the central bank previously in addition to being attached to the Commonwealth Secretariat.