News
CB salary controversy: Issue is not increase but size of it, says Harsha
… asks for reappraisal of pay structure
CB never opposed pay hikes for anyone: Governor
By Shamindra Ferdinando
Chairman of the Committee on Public Finance (CoPF) Dr. Harsha de Silva on Tuesday (05) said what was at issue was the sheer size of salary increase granted to Central Bank (CB) employees.
The SJB lawmaker said so when Governor of the Central Bank Dr. Nandalal Weerasinghe sought an explanation from the House Committee whether the MPs found fault with the Central Bank over the salary increase granted to employees with effect from January 1 this year or the amount (percentage) given in terms of a Collective Agreement.
Dr. Weerasinghe appeared before the CoPF after having responded to questions raised at the party leaders’ meetin chaired by Speaker Mahinda Yapa Abeywardena.
Political sources said that the party leaders’ meeting, as well as the CoPF proceedings, commenced simultaneously. Of the seven Governing Board (GB) members, only Dr. Weerasinghe appeared before the party leaders and subsequently joined GB members, namely A.N. Fonseka, Dr. Ravi Ratnayake, Anushka S Wijesinha, Vish Govindasamy, Rajeev Amarasuriya and Manil Jayesinghe.
Responding to CoPF’s Chairman’s declaration that the Parliament felt that salaries of Central Bank employees shouldn’t have been increased by so much, Dr. Weerasinghe emphasised the need to explain their position in this regard.
Dr. Weerasinghe said that the Central Bank had never advised the government not to increase the salaries of state sector employees. Everyone’s income had to go up for the economic crisis to be resolved. “Salaries of both public and private sectors should be increased as soon as possible depending on the availability of funds.”
Dr. Weerasinghe said that the Parliament could say that the salary increase granted with effect from January 1 this year should have been delayed by one year. They could debate whether the increase granted to Central Bank employees was morally right now or a year later, he added.
Dr. Weerasinghe said that the government granted salary increases to an extent it could. The Governor was referring to the salary increase announced by President Ranil Wickremesinghe, in his capacity as the Finance Minister in the 2024 Budget.
Dr. de Silva pointed out that the House Committee had raised the issue over the size of the latest Central Bank salary increase and not the salary increase itself.
A statement issued by Janakantha Silva, Director Administration and Acting Director Communication, disclosed that during the party leaders’ meeting with the Central Bank team it transpired that as a result of the latest increase their monthly salary bill would go up by Rs 232 mn.
Dr. de Silva said that the Central Bank was a regulated monopoly. Therefore there was no competition. The former UNP State Minister emphasized that the Central Bank was regulated by Parliament.
Dr. Weerasinghe reiterated that the Central Bank was not of the view that salaries shouldn’t be increased.
Responding to Dr. Weerasinghe contention that the Central Bank had to look after its employees, Colombo District MP de Silva said all establishments faced that issue and it was not limited to the Central Bank. Economists weren’t the only category affected by the current crisis but doctors, engineers as well as other categories of workers.
Dr. de Silva urged the GB to reconsider the size of the salary increment.
Dr. de Silva yesterday told The Island that the House Committee believed the CB Governing Board would address the concerns raised by Parliament at the level of CoPF and the party leaders as well.
In spite of big boasts of rapid economic recovery and all sorts of claims, the country was in a precarious situation and the unexpected situation caused by the Central Bank salary increase could undermine public faith in the government, Dr. de Silva said.
News
Diesel replacement costs up to Rs. 4.5 bn in April
Coal power generation falls by 27 GWh
A sharp decline in coal-fired electricity generation in April 2026, compared to the corresponding month last year, may have cost Sri Lanka more than Rs. 4.5 billion, as the country was compelled to rely on significantly more expensive diesel-powered generation to make up the shortfall, according to power sector data.
The coal-based electricity generation, in April 2026, was 27 GWh lower than in April 2025, a development that has sparked concern among energy experts and economists over the mounting financial burden on the country’s already strained power sector.
Industry calculations reveal that generating the lost 27 GWh through diesel-fired power plants would require approximately 8.1 million litres of fuel, based on a standard consumption rate of 0.3 litres per kilowatt-hour.
With fuel costs estimated at around USD 286 per barrel, or roughly USD 1.80 per litre, the replacement power would have cost approximately USD 14.57 million. At the prevailing exchange rate of about Rs. 315 to the US dollar, the bill exceeds Rs. 4.5 billion for April alone.
Energy sector analysts say the figure highlights the enormous economic value of maintaining high availability at coal-fired power plants, particularly at a time when Sri Lanka is seeking to reduce electricity costs and strengthen energy security.
“The financial impact of losing low-cost coal generation is substantial. Every unit not generated by coal has to be replaced by a much more expensive source, usually diesel or fuel oil, which ultimately affects the finances of the power sector and the wider economy,” a senior energy analyst said.
Even under a more conservative calculation, based on the average electricity generation cost of around Rs. 72 per unit recorded in 2025, the loss remains significant. The 27 million units not generated from coal would translate into an additional cost burden of nearly Rs. 2 billion.
The decline in coal generation comes at a critical juncture for Sri Lanka’s energy sector.
The government has repeatedly emphasised the need to maintain affordable electricity tariffs, while reducing dependence on imported fossil fuels and expanding renewable energy capacity.
Experts warn that any sustained reduction in low-cost baseload generation could undermine these objectives, increasing the need for costly thermal power and placing additional pressure on foreign exchange reserves.
The latest figures are expected to intensify scrutiny of generation planning, fuel procurement strategies and the operational performance of major power plants. They also underscore the importance of ensuring uninterrupted operation of coal-fired facilities until sufficient renewable and storage capacity is available to replace them reliably.
With the country striving to maintain economic stability and energy affordability, analysts argue that avoiding such generation shortfalls must remain a top priority for policymakers and power sector planners.
By Ifham Nizam
News
Sallay on hunger strike: Counsel warns CID
Asith Siriwardena Counsel for former Director of State Intelligence Service, Major General (Retd.) Suresh Sallay, detained under the Prevention of Terrorism Act (PTA) over the 2019 Easter Sunday attacks, has called upion the Director of the CID, SSP G. S. Abeysekara, to transfer his client either to a private or government hospital to receive urgently needed teatment.
Sallay was on a hunger strike, claiming mistreatment by the CID, his wife said, after visting him, yesterday.
Siriwardena wrote to the CID Director yesterday (07) after Sallay was visited by his wife, son and brother.
The text of the letter: “The family observed that Mr. Sallay’s physical condition has deteriorated to an alarming and critical level.
“He is reportedly unable to attend the visitation without the physical assistance of two officers. During the visit, he informed his family that he had refused medication, saline, food, and water. He further expressed a belief that his death is imminent and requested that arrangements be made for the donation of his eyes. He also requested an immediate visit from his Attorney for the purpose of executing his last will and other related legal documentation.
“These statements, and circumstances, demonstrate a grave deterioration in his physical and psychological condition. It is apparent that he is no longer capable of making rational decisions concerning his own welfare, health, and survival.
The prolonged conditions, under which he is presently being held have, at the very least, created a serious and immediate risk to his life.
“The State assumes a non-delegable duty of care toward every person held in its custody. Once an individual is deprived of liberty, the responsibility for safeguarding that person’s life, health, and wellbeing rests squarely upon the authorities exercising control over that individual. Any failure to discharge that duty in the face of a known and imminent medical emergency is a matter of the utmost legal seriousness.
“You are hereby formally notified that Mr. Sallay requires immediate medical intervention by qualified independent medical professionals and urgent transfer to an appropriate hospital facility capable of providing comprehensive assessment and treatment. Any delay, refusal, or failure to act despite clear knowledge of his precarious condition may give rise to personal and institutional liability under the criminal and civil law of Sri Lanka
“Should General Sallay suffer irreversible injury or death while remaining in the present conditions despite this explicit warning, it will be open to the relevant authorities, courts, and investigative bodies to examine whether such conduct amounts to a deliberate disregard of a known and foreseeable risk to life. Those responsible for decisions concerning his continued detention and medical care may be required to account personally for their actions and omissions.
“Accordingly, I demand that:
1. Mr. Sallay be transferred forthwith to a government or private hospital equipped to provide urgent medical treatment;
2. He be examined immediately by independent medical specialists, including psychiatric professionals if necessary; His legal representatives and family be granted reasonable access to him;
3. A written update on his medical status and the measures taken for his protection be provided without delay. This letter constitutes formal notice. Any further failure to act despite knowledge of the circumstances set out herein will be relied upon in any future judicial, criminal, constitutional, or international proceedings arising from harm suffered by my client.”
News
Opp. questions why Rs 10 bn meant for Ditwah victims held in Treasury account
The Opposition says the NPP government should explain why the funds received by Rebuilding Sri Lanka haven’t been utilised to provide relief to those affected by Ditwah cyclone in late November last year.
The failure on the part of the government to utilise as much as Rs 10 bn, received from local and foreign donors, came to light when the National Audit Office (NAO) appeared before the Public Finance Commission recently.
The NAO told the House Committee that no statutory fund currently existed under the name “Rebuilding Sri Lanka” and the programme operated through an account maintained under the Deputy Secretary to the Treasury.
The NAO declared that no payments had been made through this account to date.
Former SLPP MP Sanjeewa Edirimanne said that until the disclosure made by the NAO the country had been led to believe the Rebuilding Sri Lanka fund provided post-Ditwah relief. Pointing out that JVP General Secretary Tilvin Silva’s declaration in Jaffna that funds allocated to hold Provincial Council polls
had been utilised to assist Ditwah victims, Edirimanne said such blatant lies were propagated while the government held on to Rs 10 bn meant for the disaster victims.SJB MP Mujibur Rahman questioned the rationale behind keeping funds received specifically for Ditwah victims still living under extremely difficult conditions. (SF)
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