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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.
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President and representatives of IMF discuss progress of EFF

A comprehensive discussion regarding the progress of the Extended Fund Facility (EFF) agreed with the International Monetary Fund (IMF) took place on Thursday (06) at the Presidential Secretariat, between President Anura Kumara Disanayake and the IMF delegation.
The current government has already reached a staff-level agreement with the IMF on the third review regarding the extended arrangement under the Extended Fund Facility (EFF) of USD3 billion.
The details of this review are expected to be presented to the International Monetary Fund’s Board of Directors by the end of this month. In this regard, discussions were held regarding the progress and the government’s involvement in continuing the program moving forward.
Once the approval is granted by the IMF Executive Board, Sri Lanka is expected to release the fourth tranche of the extended loan, amounting to 333 million dollars.
The discussion was also attended by IMF Executive Director Dr. Krishnamurthy Subramanian, Alternate Executive Director Dr. P. K. G. Harischandra, Deputy Minister of Economic Development Dr. Anil Jayantha Fernando, Secretary to the President Dr. Nandika Sanath Kumanayake, Secretary to the Ministry of Finance Mahinda Siriwadana, and Governor of the Central Bank of Sri Lanka Dr. Nandalal Weerasinghe.
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New Commanders of the Tri-Forces meet the President

The newly appointed Commander of the Tri-Forces met with Commander-in-Chief, President Anura Kumara Disanayake on Thursday (6th) afternoon at the Presidential Secretariat.
The meeting was attended by Lieutenant General Lasantha Rodrigo, the new Army Commander; Vice Admiral Kanchana Banagoda, the new Navy Commander and Air Marshal Vasu Bandu Edirisinghe, the new Air Force Commander.
Following tradition, the new commanders formally met with the President after assuming their duties. During the meeting, they also presented the President with a commemorative token.
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Musk reveals ‘crazy waste’ of USAID funds in Sri Lanka

USD 7.9 mn spent on teaching Lankan journalists how to avoid “binary-gendered language”
USAID has spent $7.9 million to teach Sri Lankan journalists how to avoid “binary-gendered language”, Elon Musk who heads the Department of Government Efficiency (DOGE) said in a post on X on Thursday.
Musk called it a “Crazy waste of your tax money!”
Musk’s criticism came with a detailed breakdown of USAID’s spending across various countries, which he argued reflects misguided priorities. According to a document Musk shared, USAID has funded a range of projects globally, including $20 million for a new Sesame Street show in Iraq, $4.5 million to “combat disinformation” in Kazakhstan, and $6 million to transform digital spaces to reflect feminist democratic principles.
The list also included $1.5 million for art projects promoting the inclusion of people with disabilities and $2 million for sex changes and LGBT activism in Guatemala. $10 million worth of USAID-funded meals, allegedly ended up in the hands of an al-Qaeda-linked terrorist group, the document states.
Other USAID programmes include $25 million for Deloitte to promote green transportation in Georgia, $6 million for tourism development in Egypt, and $2.5 million to foster inclusion in Vietnam. The documents also pointed to $5 million awarded to EcoHealth Alliance, a group linked to bat virus research at the Wuhan lab, and $20 million for an organisation tied to what Musk described as a “key player” in the Russiagate impeachment inquiry.
Further funds were allocated for various LGBT-related initiatives worldwide, including $5.5 million for LGBT activism in Uganda, $6.3 million for men who have sex with men in South Africa, $3.9 million for LGBT causes in the western Balkans, and $6 million for advancing LGBT issues globally. Additionally, $2 million was allocated to promote LGBT equality through entrepreneurship in Latin America, while $1.5 million was designated for LGBT advocacy in Jamaica.
The data also highlighted spending closer to home, with $1.2 million going to help the African Methodist Episcopal Church Service and Development Agency in Washington, D.C., build a 440-seat auditorium. A further $1.3 million was provided to Arab and Jewish photographers, while $1.1 million supported an Armenian LGBT group.
Musk criticised other expenditures as well, including $3.9 million for artisanal gold mining in the Amazon and $500,000 aimed at solving sectarian violence in Israel just days before the October 7 Hamas attack.
Attention was also drawn to USAID’s $150 billion “whole-of-agency” climate strategy, which outlines efforts to build an “equitable world” while pursuing net-zero greenhouse gas emissions.
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