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Central Bank says it doesn’t go by micro level details of ‘salary inflation’
By Sanath Nanayakkare
The Central Bank yesterday said that they don’t go by micro level details of wage inflation when making its monetary policy decisions.
When The Island asked whether it considers the salary scales and increments of the low-skilled and semi-skilled workers in the economic system of the country when making their monetary policy decisions, an official said: “The wages are also a factor. We don’t go by micro level details of wage inflation. We are using the wage indices. So, maybe we are using the government sector wage indices and informal sector wage indices, and I don’t know whether Director- Statistics can make any comment on this”, she said.
Then another official in a follow-up reply said,” We take into account the informal sector wage indices which are published by us and also the government’s Wages Board has another index for them which is published by the Labour Department. Considering all these, we compile it. It is one of the many factors that we consider,” she said.
These remarks were made at the Q&A time after a technical session the Central Bank held to broaden the awareness of journalists on the rationale for the monetary policy decisions made by the Central Bank.
The Bank requested the journalists to specifically target their questions at the topic under discussion indicating discouragement of any other questions.
According to elibrary website of the IMF:
“Informal employment accounts for about two-thirds of employment in Sri Lanka. The informal sector is defined as a group of production units in the economy that are not captured by formal arrangement in terms of regulations and institutions. While the informal sector refers to production units, informal economy refers to activities by economic agents that are not captured by formal arrangements, and informal employment refers to jobs under informal arrangements. Economic activities in the informal sector are mostly legal but are not captured by official statistics for various reasons, such as the absence of tax payments and social security contributions and the exclusion from regulation such as company or employment laws.”
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Progress reviewed on the implementation of the circular issued to curb the Dengue Epidemic threat
A progress review meeting on the implementation of the circular issued to address the prevailing dengue epidemic threat was held this afternoon (03) at the Presidential Secretariat under the chairmanship of Secretary to the President Dr Nandika Sanath Kumanayake.
The discussion examined the progress of programmes implemented by all State institutions in accordance with the circular issued on 23 June 2026 on dengue prevention, as well as measures taken thus far to control the current dengue situation and the plans and strategies to be pursued in the future.
Attention was also focused on sustainable solutions that could be adopted through greater coordination among all State institutions to prevent the spread of dengue in high-risk areas, while discussions were held on further intensifying fumigation activities in such locations.
The meeting further reviewed the action taken in response to information received by the Dengue Control Operations Centre.
Pointing out that high-risk areas could only be freed from dengue through innovative approaches that move beyond conventional methods, the President’s Secretary stressed that controlling the disease could not be achieved by the Government alone and that the public also bore a significant responsibility in this regard.
The importance of strengthening the contribution of Public Health Inspectors, continuing household cleaning initiatives on a sustained basis, and implementing programmes based on accurate data to eliminate high-risk zones was also emphasised.
Those present at the meeting included Chief of Staff to the President Prabath Chandrakeerthi; Secretary to the Ministry of Health and Mass Media Dr Anil Jasinghe; Senior Additional Secretary to the President Russell Aponsu; Additional Secretary to the President (Clean Sri Lanka) Engineer S. P. C. Sugeeshwara; Additional Secretary (Provincial Councils and Local Government) M. Kodippiliarachchi; Director of the National Dengue Control Unit Dr Kapila Kannangara; Additional Director General (Information Technology and Media) P. G. I. Gamage; Director (Social Affairs) Kapila Senarath; Director (Volunteer Services) H. P. S. Shantha; officials of the Clean Sri Lanka Secretariat; heads of the health sector; public officials; senior representatives of the security forces; and several others.
President’s Media Division (PMD)
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UNEP support pledged to strengthen Sri Lanka’s Environmental Priorities
A special bilateral discussion was held on Thursday (02) morning at the United Nations Conference Centre (UNCC) in Bangkok, Thailand, between the Deputy Minister of Environment, Anton Jayakody, and regional representatives of the United Nations Environment Programme (UNEP).
The discussion began with an appreciation of the long-standing relationship between Sri Lanka and UNEP, particularly highlighting Sri Lanka’s role as a UNEA 8 Bureau member and a key partner in Global Environment Facility (GEF) projects. The meeting focused extensively on securing UNEP’s technical
and financial support to advance several of Sri Lanka’s national environmental priorities.
During the meeting, the Deputy Minister expressed Sri Lanka’s gratitude for the guidance provided by UNEP throughout the adoption process of the UNEA Youth Resolution. He outlined the national program currently being designed in Sri Lanka in alignment with the resolution. Under this initiative, attention was drawn to securing UNEP’s technical assistance, capacity-building support, and access to global funding mechanisms.
These resources will be utilized to formulate a “National
Environmental Literacy Index” to assess the environmental awareness of youth, establish “Youth Environmental Committees” spanning from the national to grassroots levels, set up university youth forums, and implement environmental promotion programs driven through sports
In addition, Sri Lanka requested UNEP’s assistance in upgrading its national air quality monitoring systems, enhancing data analysis, and developing policy guidelines.
The Deputy Minister also sought policy advisory services on Extended Producer Responsibility (EPR), technical expertise in plastic waste lifecycle management, and support for pilot projects aimed at minimizing single-use plastics and transitioning toward a circular economy.
Furthermore, the Deputy Minister noted that measures have been taken in collaboration with the Ministry of Transport to expedite sustainable e-mobility projects. He added that Sri Lanka anticipates UNEP’s support for the “Sustainable Cities Integrated Programme” under the country’s GEF 9 national
strategies. Reaffirming Sri Lanka’s active commitment to regional initiatives that foster environmental knowledge sharing among South Asian nations, it is expected that UNEP’s technical intervention during the upcoming GEF 9 financial cycle will continue to support Sri Lanka’s journey toward environmental resilience.
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CIABOC to question Harak Kata on Rs. 200 mn bribery allegation
He is the only detainee at old Tangalle prison
The Commission to Investigate Allegations of Bribery or Corruption (CIABOC) probing bribery allegations pertaining to the recent arrest of attorney-at-law Rakitha Rajapakshe, former SJB Horana organiser Charitha Abeysinghe and another person is expected to question drug dealer Nadun Chintaka Wickremaratne alias Harak Kata being held under the Prevention of Terrorism Act (PTA).
The CIABOC arrested Rakitha and Charitha Kumara Wasantha Abeysinghe and former Director of Airport and Aviation Services Warushahanndige Aruna Sri Chathuranga on 25 June over the Rs 200 mn bribery allegation. Produced before the Colombo Chief Magistrate court on the same day, they were remanded until 3 July.
Sources familiar with the case told The Island that Wickremaratne arrested in Madagascar on 1 March 2023 was brought to Sri Lanka on 14 March 2023, and after preliminary investigations he was detained at the old Tangalle prison. Wickremeratne has been accused of running a major narcotics smuggling operation.
Wickremaratne’s lawyer Udul Premaratne, having visited Wickremeratne, sought the intervention of the Human Rights Commission of Sri Lanka to ensure the latter’s safety.
As many as 90 police (terrorist Investigation Department) and the Special Task Force (STF) have been assigned to the Tangalle old prison where Wickremaratne remains the sole detainee.
The CIABOC, in a statement posted in Sinhala on its website on 25 June said that arrested persons received the money after having initially asked for Rs 500 mn and then reduced it to Rs 200 mn. The Rs 120 mn allegedly received has been described as an advance.
Sources said investigators would question Wickremaratne over his wife’s claim that she had paid Rs. 120 million.
In terms of the PTA, the detention orders can be issued only by the Defence Minister. At the time Wickremaratne was brought to Colombo, Ranil Wickremesinghe held the defence portfolio. According to legal sources, when the President also held the defence portfolio, the responsibility for issuing the detention orders was relegated to the Defence Secretary.
Maj. Gen. Kamal Gunaratne who served as the Defence Secretary during that period.
Sources said that Wickremaratne’s wife was yet to come back and his parents and a brother were believed to be the only visitors except for lawyers. One of the crucial issues was how Wickremaratne had communicated with his wife living abroad, sources said.
By Shamindra Ferdinando
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