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{{main|Sri Lankan economic crisis (2019–Present)}}
Cabraal assumed his second term as governor of the central bank 15 September 2021 at a time Sri Lanka was facing a major [[debt crisis]].<ref>{{cite news |title=Cabraal assumes duties: Reveals first & urgent priority |url=https://www.newswire.lk/2021/09/15/cabraal-assumes-duties-reveals-first-urgent-priority/?fbclid=IwAR1CXdLmzIVpIHmQzOMr_5zTjnTO3iQBarf5drc256eeomcSAmjQJX4Z7MU |access-date=16 September 2021 |publisher=newswire.lk}}</ref><ref>{{Cite web|date=2021-09-13|title=President appoints Ajith Nivard Cabraal as new Central Bank Governor|url=https://www.newswire.lk/2021/09/13/president-appoints-ajith-nivard-cabraal-as-new-central-bank-governor/|access-date=2021-09-14|website=NewsWire|language=en-US}}</ref> He requested for and gained cabinet rank as the Governor of the Central Bank.<ref>{{cite news |title=CBSL Governor given Cabinet rank, goes up in Table of Precedence |url=https://www.ft.lk/front-page/CBSL-Governor-given-Cabinet-rank-goes-up-in-Table-of-Precedence/44-724924 |access-date=11 March 2022 |publisher=The Financial TImes}}</ref> Cabraal apposed an [[IMF]] bailout in favor of a home grown solution for the debt crisis. Having depleted foreign currency reserves and gold reserves to boaster the Sri Lankan Rupee and repayment of sovereign bonds, the central bank free floated of the currency in early March which saw a 30% depreciation of the Rupee against the dollar in days following major shortages of fuel, food and medicine.<ref>{{cite news |title=Sri Lanka does not need the IMF at the moment, no default: Minister Cabraal |url=https://economynext.com/sri-lanka-does-not-need-the-imf-at-the-moment-no-default-minister-cabraal-85769/ |access-date=11 March 2022 |publisher=economynext.com}}</ref><ref>{{cite news |title=Sri Lanka to start debt restructuring discussion with IMF – Reuters |url=https://economynext.com/sri-lanka-to-start-debt-restructuring-discussion-with-imf-reuters-91564/ |access-date=11 March 2022 |publisher=economynext.com}}</ref><ref>{{cite news |title=CB chief sees negative fallouts from IMF deal |url=https://island.lk/cb-chief-sees-negative-fallouts-from-imf-deal/ |access-date=11 March 2022 |publisher=island.lk}}</ref>
He is accused of running the economy of the country to the ground within 6 months ever since he came to the fore as CBSL governor for second term. He has been accused of being a political puppet to Sri Lankan government led by Rajapaksas. During his tenure, Central Bank was engaged in printing in excess of trillions of money to finance the budget and economic crisis.<ref>{{Cite web |date=2022-01-14 |title=Cabraal reveals how much money Sri Lanka printed in 2021 |url=https://www.newswire.lk/2022/01/15/cabraal-reveals-how-much-money-sri-lanka-printed-in-2021/ |access-date=2022-04-04 |website=NewsWire |language=en-US}}</ref> He has also reportedly issued guidelines on increasing money printing based on the commands he received from Rajapaksa government.<ref>{{Cite web |title=Money printing is like drastic treatment to a major illness - Ajith Nivard Cabraal - Opinion {{!}} Daily Mirror |url=https://www.dailymirror.lk/opinion/Money-printing-is-like-drastic-treatment-to-a-major-illness-Ajith-Nivard-Cabraal/231-217302 |access-date=2022-04-04 |website=www.dailymirror.lk |language=English}}</ref><ref>{{Cite web |title=CB likely to continue money expansion, direct controls {{!}} Daily FT |url=https://www.ft.lk/columns/CB-likely-to-continue-money-expansion--direct-controls/4-723299 |access-date=2022-04-04 |website=www.ft.lk |language=English}}</ref> His policies as governor resulted in a catastrophic economic situation for Sri Lanka as inflation skyrocketed due to too much money printing.<ref>{{Cite web |date=2022-01-07 |title=Sajith on Cabraal-Economics: Does money-printing have no repurcussions? |url=https://www.newsfirst.lk/2022/01/07/sajith-on-cabraal-economics-does-money-printing-have-no-repurcussions/ |access-date=2022-04-04 |website=Sri Lanka News - Newsfirst |language=en}}</ref> The value of Sri Lankan rupee started to decline after his attempts to increase the money supply in circulation and purchasing power of public also declined. He even made a bizarre claim by saying there is no relationship between money printing and depreciation of local currency in foreign exchange market. During his tenure, CBSL allegedly printed Rs. 22.27 billion rupees overnight on 14 March 2022.<ref>{{Cite web |date=2022-03-15 |title=Central Bank prints Rs. 22.27 bn overnight |url=http://www.themorning.lk/central-bank-prints-rs-22-27-bn-overnight/ |access-date=2022-04-04 |website=The Morning - Sri Lanka News |language=en-US}}</ref>
Despite the growing concerns over the inflationary pressure, he insisted in January 2022 that Sri Lanka does not need [[International Monetary Fund|IMF]] relief, as he was optimistic that Sri Lanka can settle its mandatory outstanding debt, including its international sovereign debts.<ref>{{Cite web |last=Bala |first=Sumathi |date=2022-01-24 |title=Sri Lanka's central bank governor says country does not need IMF relief amid inflation concerns |url=https://www.cnbc.com/2022/01/24/sri-lankas-central-bank-governor-says-imf-relief-is-not-necessary.html |access-date=2022-04-04 |website=CNBC |language=en}}</ref> But the finance minister [[Basil Rajapaksa]] however contradicted with Cabraal's stance on IMF indicating Sri Lanka should seek IMF assistance. The contrasting opinions between them on seeking IMF bailout package created a major rift between Basil Rajapaksa and Ajith Nivaad Cabraal and the creative differences between them also aggravated the severe economic downturn of Sri Lanka.<ref>{{Cite web |date=2022-03-23 |title=IMF assistance sought but Sri Lanka must be mindful of its core policies: central bank chief |url=https://economynext.com/imf-assistance-sought-but-sri-lanka-must-be-mindful-of-its-core-policies-central-bank-chief-91968 |access-date=2022-04-04 |website=EconomyNext |language=en}}</ref>
On 4 April 2022, he resigned from his position as CBSL governor due to his incompetence and his resignation came as a wakeup call amid the [[2022 Sri Lankan protests|growing protests over economic crisis]].<ref>{{Cite web |date=2022-04-04 |title=Sri Lanka central bank Governor Nivard Cabraal resigns |url=https://economynext.com/sri-lanka-central-bank-governor-nivard-cabraal-resigns-92529 |access-date=2022-04-04 |website=EconomyNext |language=en}}</ref>
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