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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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486 dead, 341 missing, 171,778 displaced as at 0600hrs today [05]

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The situation report issued by the Disaster Management Center at 0600hrs today [5th December] confirms that 486 persons have died and another 341 persons are missing after the devastating weather conditions in the past week.

171,778 persons have been displaced and have taken refuge at 1,231 safety centers established by the government.

 

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Media slams govt.’s bid to use Emergency to silence critics

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Sunil Watagala

Media organisations have denounced Deputy Minister of Public Security and Parliamentary Affairs Sunil Watagala after he urged law enforcement authorities to use emergency regulations to take action against those posting allegedly defamatory content about the President and senior ministers on social media.

The Sri Lanka Working Journalists Association (SLWJA) yesterday issued a strongly worded statement condemning Watagala’s remarks, warning that they posed a direct threat to freedom of expression and media rights, particularly at a time when the country is struggling through a national disaster.

Watagala made the controversial comments on 2 December during a meeting at the Malabe Divisional Secretariat attended by government officials and Deputy Media Minister Dr. Kaushalya Ariyarathna. During the discussion, the Deputy Minister claimed that a coordinated effort was underway to spread distorted or false information about the disaster situation through physical means, social media, and even AI-generated content. He also alleged that individuals based overseas were contributing to such activity.

According to the SLWJA, Watagala went further, directing police officers present at the meeting to treat those posting such content “not merely as suspects but as offenders” and to take action against them under emergency regulations currently in force.

The SLWJA accused the government of abandoning the democratic principles it once campaigned on, noting that individuals who publicly championed free speech in the past were now attempting to clamp down on it. The association said this was not an isolated incident but part of a pattern of growing state pressure on journalists and media platforms over the past year.

It warned that attempts to criminalise commentary through emergency powers especially during a disaster constituted a grave violation of constitutional rights. The union urged the government to respect democratic freedoms and refrain from using disaster-related powers to silence criticism.

In a separate statement, Internet Media Action (IMA) also expressed “strong objection” to Watagala’s comments, describing them as a “serious threat to freedom of expression”, which it said is a fundamental right guaranteed to all Sri Lankan citizens.

The IMA said Watagala’s assertion that “malicious character assassination attacks” were being carried out against the President and others through social media or other media channels, and that such acts should attract severe punishment under emergency law, represented “an abuse of power”. The organisation also criticised the Deputy Minister’s claim that false opinions or misrepresentations whether physical, online, or generated by AI could not be permitted.

Using emergency regulations imposed for disaster management to suppress political criticism amounted to “theft of fundamental rights”, the statement said, adding that the move was aimed at deliberately restricting dissent and instilling fear among social media users.

“Criticism is not a crime,” the IMA said, warning that such rhetoric could lead to widespread intimidation and self-censorship among digital activists and ordinary citizens.

The group demanded that Watagala withdraw his statement unconditionally and insisted that freedom of expression cannot be curtailed under emergency laws or any other legal framework. It also called on the government to clarify its stance on the protection of fundamental rights amid increasing concerns from civil society.

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Cardinal calls for compassionate Christmas amid crisis

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Archbishop of Colombo

Archbishop of Colombo, Cardinal Malcolm Ranjith, has called on Sri Lankans to observe this Christmas with compassion and restraint, as the nation continues to recover from one of its worst natural disasters in recent memory.

In his message, the Colombo Archbishop has highlighted the scale of the crisis, noting that more than 1.5 million people have been displaced, while an “uncounted number” remain buried under debris in the hill country following landslides and severe flooding.

“It is a most painful situation,”

he has written acknowledging the difficulty of celebrating a season traditionally associated with joy while thousands are mourning lost loved ones, living in refugee centres, or left with nothing but the clothes they were wearing.

The Cardinal has urged the faithful to temper excessive celebrations and extravagance, instead focusing on helping those affected. “Celebrate, by all means, yes, but make it a moment of spiritual happiness and concern for the needs of those who suffer,” he said. “Assist as much as possible those who lost their loved ones, their homes, and their belongings.”

He has called for a Christmas marked by love, sharing, and solidarity, describing it as an opportunity to make the season “a deeply spiritual and joyful experience.”

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