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Central Bank salary controversy: MP finds fault with composition of Governing Board

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Gevindu Cumaratunga

…  asks House to rectify fundamental blunder

by Shamindra Ferdinando

Lawmaker Gevindu Cumaratunga, on behalf of the Uththara Lanka Sabhagaya (ULS), has requested the Chairman of the Committee on Public Finance (CoPF) Dr. Harsha De Silva to propose fundamental change to the Central Bank of Sri Lanka Act (No 16 of 2023) by including Secretary to the Finance Ministry/Treasury Secretary in the decision-making Governing Board (GB) of the Central Bank.

The Governing Board consists of Dr. P Nandalal Weerasinghe (Chairman), A N Fonseka, Dr. Ravi Ratnayake, Anushka S Wijesinha, Vish Govindasamy, Rajeev Amarasuriya and Manil Jayesinghe.

The SLPP National List MP has, in a letter dated March 07, 2024, addressed to de Silva, said that the controversial salary increase granted by the GB with effect from January 1, 2024, should be examined against the backdrop of the Finance Ministry Secretary not being a member of that decision-making body.

The leader of the Yuthukama civil society group said that the Finance Ministry Secretary had been a member of the five-member Monetary Board (MB) that dealt with salary increases in terms of the Monetary Law Act that was in force since 1950 until the enactment of the 2023 law in response to the deterioration of the national economy to such an extent the country halted paying debt.

The MB comprised Central Bank Governor as its Chairman, Finance Secretary both ex-officio members and three appointed members.

Declaring that leaving Finance Secretary out of the decision-making process a fundamental and catastrophic change in the new law that governed the Central Bank, MP Cumaratunga said that the common stand taken by Central Bank Governor Dr. Weerasinghe and CoPF Chairman Dr. de Silva that the salary increases were always decided by then MB on its own was not acceptable.

In terms of the new law, the GB is tasked with overseeing the administration, management and determination of general policies.

MP Cumaratunga said that the inclusion of the Finance Secretary in the MB made a huge difference as he couldn’t have ignored under any circumstances the salary structures of other categories of public sector employees when deciding on increments to Central Bank employees.

Parliament passed the Central Bank of Sri Lanka Act (No 16 of 2023) in July last year. Of 225 MPs, only 66 voted for the new law whereas 24 voted against. MP Cumaratunga said that he was among those who voted against the new law.

Pointing out President Ranil Wickremesinghe, in his capacity as the Finance Minister, asked the CoPF Chairman to submit a report on the Central Bank salary issue, MP Cumaratunga said that he expected the House Committee to recommend the inclusion of the Finance Secretary.

The Island sought an explanation from MP Cumaratunga what he expected to achieve by his proposal as the current Finance Secretary Mahinda Siriwardena as a Deputy Governor of the Central Bank, too, received the disputed salary increase. MP Cumaratunga said that if the Finance Secretary also served on the GB, he would have to explain how he agreed with the rest of the board while repeatedly demanding curbs on state sector expenditure. The MP pointed out that just a year ago Wickremesinghe-Rajapaksa government indefinitely put off Local Government polls claiming that it couldn’t afford to allocate funds for the conducting of the election. MP Cumaratunga said that at the end, the Finance Secretary, in his capacity as Deputy Governor now entitled for Rs 1.7 mn monthly salary.

Referring to recent statements made by President Ranil Wickremesinghe, at an event held at the BMICH on March 03, regarding the enactment of 42 new laws within 14 months since his election lawmaker Cumaratunga said that such boasts seemed absurd when the whole law-making process was in deepening turmoil.

The MP pointed out that the continuing controversy over the enactment of the Online Safety law that ultimately was taken up even at the ongoing 55th session of the Geneva-based United Nations Human Rights Council (UNHRC) underscored the gravity of the developing situation.

The President owed an explanation how Parliament enacted that law disregarding specific recommendations made by the Supreme Court to make it compatible with the Constitution.

MP Cumaratunga said that Justice Minister Dr. Wijeyadasa Rajapakshe, PC, recently declared that a new law was required to ensure that no one operated outside the Constitution. Pointing out that this declaration was made in the wake of the Central Bank salary issue, MP Cumaratunga emphasised that the country was paying a very heavy price for irresponsible approach towards the enactment of new laws.



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Prime Minister meets delegation from the European External Action Service

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Prime Minister Dr. Harini Amarasuriya met with the representatives of the European External Action Service [EEAS] on Tuesdqy [10 th February] at the Prime Minister’s office.

Welcoming the delegation from the European External Action Service (EEAS), the Prime Minister emphasized the importance of further strengthening and deepening the long-standing partnership between Sri Lanka and the European Union, noting the role of the European Union as a key development and economic partner.

The Prime Minister also expressed appreciation for the timely assistance extended by the European Union to Sri Lanka in response to the recent cyclone, highlighting the EU’s continued solidarity and support during times of need.

Attention was drawn to the need to expand economic cooperation between Sri Lanka and the European Union. The Prime Minister underscored the importance of undertaking necessary legislative and policy reforms to facilitate enhanced economic engagement, trade, and investment.

The delegation was briefed on the ongoing initiatives and reforms being implemented by the new Government aimed at strengthening economic stability, governance, and creating a conducive environment for sustainable growth and international cooperation.

The meeting was attended by the Acting Managing Director for Asia and the Pacific in the European External Action Service, EU co-chair of the Joint Commission, Ms. Paola Pampaloni; EU Ambassador, Head of EU Delegation Ms. Carmen Moreno and the representatives of European External Action Services and Delegation of the European Union, and Additional Secretary to the Prime Minister, Ms. Sagarika Bogahawatta and the officials from the Ministry of Foreign Affairs, Foreign Employment, Tourism Sri Lanka.

[Prime Minister’s Media Division]

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Newly appointed ADB Country Director to Sri Lanka and delegation meet PM

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The newly appointed Country Director of the Asian Development Bank for Sri Lanka Ms Shannon Cowlin and the accompanying delegation met with  Prime Minister Dr. Harini Amarasuriya on Tuesday [0th of February] at the Prime Minister’s office.

Welcoming the delegation, the Prime Minister extended congratulations to the newly appointed Country Director and acknowledged the long-standing partnership with the Asian Development Bank. The Prime Minister also expressed appreciation for ADB Bank’s continued engagement and support aligned with Sri Lanka’s national development priorities.

The Prime Minister also conveyed gratitude for the timely assistance extended by the ADB in response to Cyclone Ditwah, noting the importance of such support in mitigating the immediate impacts of natural disasters.

The ADB delegation reiterated its readiness to further assist Sri Lanka during the post-cyclone recovery phase, including rebuilding and reconstruction efforts, and emphasized its commitment to the supporting the education sector.

The meeting was attended by OIC / Deputy Director General, SARD Ms. Sona Shrestha, Ms. Cholpon Mambetova Country Operations Head of ADB Sri Lanka Mission Resident, Additional Secretary to the Prime Minister Ms. Sagarika Bogahawatta, Director General of the External Resource Department, Ministry of Finance  Samantha Bandara, Director for ADB Division in External Resource Department, Ministry of Finance Ranjith Gurusinghe.

[Prime Minister’s Media Division]

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School student transport services are being regulated

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A discussion on regulating school student transport services was held on the 09th of February at the Prime Minister’s Office under the patronage of Prime Minister Dr. Harini Amarasuriya, with the participation of officials from the National Transport Commission and the Ministry of Education.

The authority for regulating school student transport has been vested with the National Transport Commission, and as the relevant draft of regulations have already been prepared, discussions were held on the provisions contained in these drafts as well as on new proposals that should be incorporated.

During the discussion, the attention was focused on meeting the emerging needs of transportation arising from the schools, minimizing issues encountered in the transportation of school students by establishing an organized transport mechanism, and deploying the “Sisu Sariya” school transport service in a more efficient and effective manner followed by the new educational reforms process.

Discussions were also held on introducing laws and regulations to systematize the transportation of schoolchildren, prioritizing child protection by preventing reported incidents of abuse and harassment during student transport, and enhancing professionalism among school transport service providers to ensure a responsible and accountable service.

The focus was also emphasized on the need for coordinated action among the Ministry of Transport, Highways and Urban Development, the National Transport Commission, the Ministry of Education, Higher Education and Vocational Education, and the National Child Protection Authority.

The discussion was attended by the Minister of Transport, Highways and Urban Development Bimal Rathnayake, Chairman of the National Transport Commission P. A. Chandrapala, officials of the National Transport Commission, and the officials from the Ministry of Education, Higher Education and Vocational Education.

[Prime Minister’s Media Division]

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