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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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34 new projects under “Clean Sri Lanka” programme this year

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Under the guidance of President Anura Kumara Disanayake, the “Clean Sri Lanka” programme,  implemented as a key government initiative is set to launch 34 new projects this year, and work on many of these projects is scheduled to commence by the end of this April.

In line with this, a one-day workshop was held on Thursday (10) at the “Clean Sri Lanka” Secretariat located in the Lotus Building at the Temple Trees, under the leadership of Secretary to the President Dr. Nandika Sanath Kumanayake. The workshop provided technical guidance on preparing project proposals in accordance with the formats required by the Department of National Planning for submission and approval.

The “Clean Sri Lanka” programme aims to foster social, environmental and ethical transformation across the country, with the active participation of all stakeholders. A sum of Rs. 5 billion has been allocated from this year’s national budget for its implementation.

Once the Department of National Planning grants approval for the proposed projects, detailed action plans will be developed in line with prescribed formats. It was agreed that projects deemed ready for implementation will commence before the end of April.

During the workshop, Secretary to the President outlined the government’s expectations and the intended outcomes of the “Clean Sri Lanka” programme.

Senior officials representing the Ministry of Public Administration, Provincial Councils and Local Government, Ministry of Foreign Affairs, Foreign Employment and Tourism, Ministry of Health and Mass Media, Ministry of Education, Higher Education and Vocational Education, Ministry of Transport, Highways, Ports and Civil Aviation, Ministry of Public Security and Parliamentary Affairs, Ministry of Agriculture, Livestock, Lands and Irrigation, Ministry of Digital Economy, Ministry of Urban Development, Construction and Housing, Ministry of Environment, Ministry of Industries and Entrepreneurship Development, Sri Lanka Police, and the Western Provincial Council were in attendance.

Also present were Engineer S.P.C. Sugeeshwara, Additional Secretary to the President (Clean Sri Lanka Programme) and G.M.R.D. Aponsu, Senior Additional Secretary to the President (Finance and Economic Affairs), along with other senior officials.

[PMD]

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Financial assistance of USD 01 Million for the Disaster-Affected People of Myanmar

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The Government of Sri Lanka has extended financial assistance amounting to USD 01 Million to provide relief to the people of Myanmar affected by the recent earthquake.

The relevant cheque was officially handed over by the Secretary to the President, Dr. Nandika Sanath Kumanayake, to the Ambassador of Myanmar to Sri Lanka,  Marlar Than Htaik.on Thursday (10) at the Presidential Secretariat.

Despite the prevailing economic challenges in Sri Lanka, the Ambassador of Myanmar expressed her deep appreciation to President Anura Kumara Disanayake and the Government of Sri Lanka for this gesture of solidarity and support towards the disaster-stricken people of Myanmar.

Furthermore, the Ambassador extended her gratitude for Sri Lanka’s decision to deploy relief teams and medical personnel during this difficult time. She also noted that such acts of compassion further strengthen the longstanding religious and cultural friendship between Sri Lanka and Myanmar.

The Ambassador also briefed the Secretary to the President on the current situation in Myanmar following the earthquake.

Senior Additional Secretary to the President,  Roshan Gamage, along with officials from the Embassy of Myanmar,  Winh Wint Khaus Tun and Ms. Lei Yi Win, were also present at this occasion.

[PMD]

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Indo-Lanka MoUs unlikely to be tabled in Parliament any time soon

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Ali Sabry

…of seven SOCs only one constituted so far

Sri Lanka’s controversial MoU on Defence Cooperation with India was unlikely to be taken up any time soon in Parliament in spite of the House Sectoral Oversight Committee (SOC) on Governance, Justice and Civil Protection that has been assigned defence, authoritative sources told The Island.

Of the seven SOCs only one was activated with the recent election of Dr. Najith Indika, MP, as the Chairman of the Sectoral Oversight Committee on Governance, Justice, and Civil Protection of the Tenth Parliament.

The inaugural meeting of the current parliament was held on 21 Nov., 2024.

Sources said that the parliament had met for the last time yesterday (10) before the Sinhala and Tamil New Year holiday. It is scheduled to meet again on May 8.

The UNDP that has financially backed the establishment of the SOC system to help strengthen the role of the parliament recently reached a consensus with the government to reduce the number of SCOCs from 17 to seven. The Island, in writing, asked for the UNDP’s reaction to the operation of SOCs but had not received a response at the time this edition went to press.

The SOCs have the power to examine any Bill, except the Bills defined in Article 152 of the Constitution, Treaty, Reports including the Annual and Performance Reports relating to the institutions coming under its purview or any other matter referred to the Committee by Parliament or any Committee or a Minister relating to the subjects and functions within their jurisdiction.

Sources said that out of the seven SOCs only one had been activated during the past five months though the government and the Opposition agreed to share the leadership of them.

Accordingly, it was agreed that the government would appoint chairpersons to four SOCs –– Economic Development and International Relations, Health, Media and Women’s Empowerment, Science, Technology and Digital Transformation and Governance, Justice and Civil Protection .

It was also agreed that the Opposition would appoint chairpersons to the SOCs on Infrastructure and Strategic Development, Education, Manpower and Human Capital, and Environment, Agriculture and Resource Sustainability to the Opposition.

India and Sri Lanka on April 5 signed six MoUs on HVDC interconnection for import/export of power, cooperation in the field of sharing successful digital solutions implemented at population scale for digital transformation, defence cooperation, multi sectoral grant assistance for Eastern province, health and medicine and pharmacopoeia cooperation. In addition to them, India, Sri Lanka and UAE signed a tripartite MoU cooperation in development of Trincomalee as an energy hub.

The Island  asked Ali Sabry, PC, who served as foreign minister during Ranil Wickremesinghe’s tenure as the President (July 2022 to Sept 2024) whether the seven MoUs had been discussed during that period. We also asked him whether those MoUs should have been discussed at SOCs before finalisation.

Sabry said: “Most of the MOU to my knowledge were discussed except the one on Defence Cooperation, which I am unaware of. General procedure is the relevant line ministry prepares the initial draft and gets the input from the Foreign Ministry and goes for stakeholder consultation of all ministries and agencies involved. Then the President’s Office grants its sanction and with the approval of the AG, it goes before the cabinet of ministers. With Cabinet approval, the government could sign the MOU.”

Sabry said that he was of the opinion that once the government signed a particular MoU, it should be placed before the parliament. “MOU’s are generally not legally binding and only signify the desire to work together. If the signed MoUs were to be implemented, then they have to be followed by agreements or laws.”

He emphasised the pivotal importance of transparency in the whole process. The ex-minister said: “I think transparency is crucial in these matters. Concealment leads to speculation and assumption of the worst. The MOUs should be tabled in Parliament for public information. Discussion at the relevant SOCs would have been helpful. There are growing fears fueled by lack of information in the public domain. This is a private comment, not to be attributed to me.

Asked whether MoUs, particularly the ones on defence and energy had to be approved by the Attorney General, the former minister said that the AG has to advise the MoUs compatibility with the Constitution. “But Article 157 of the Constitution does not apply; the 2/3 majority stipulated there envisages only investment treaties.” Foreign Minister Vijitha Herath assured Parliament on April 8 that the AG had cleared all seven MoUs and none of them were inimical to the country.

By Shamindra Ferdinando

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