News
FSP opposes move to make Central Bank of Sri Lanka independent of Parliament
The Frontline Socialist Party says that the Central Bank of Sri Lanka Bill, if passed, would enable President Ranil Wickremesinghe to come to Parliament one day and state that there had been no Central Bank robbery for there had been no Central Bank to be robbed.
Addressing the media at the party headquarters, in Nuegegoda, FSP Educational Secretary, Pubudu Jagoda, said that the new legislation would deprive Parliament of power over the Central Bank. “This Bill contains provisions to do away with the Parliament’s powers of controlling the Central Bank. Parliament has the supreme control over public finance. It will hand the Central Bank’s autonomy to a few officials,” Jagoda said. “This Bill contains nothing but realisation of the general concept of an Independent Central Bank (ICB) promoted across the world by neo-classical economists and institutions such as the IMF. ICBs are fundamentally antithetical to democracy. The Parliament of elected representatives will lose their power to stop if an ICB oversteps its regulations. Parliament cannot make an ICB accountable. This has been tried and failed in many parts of the world. What happened in Latvia recently exemplifies ICB well. The Latvian Central Bank Governor was accused of bribery and money laundering. The Latvian Parliament voted 55 to 0 against him. However, when he was barred, the European Union stated that it was against the EU law because the Latvian Central Bank was an ‘independent’ institution.
Jagoda said that the US Parliament had been able to nothing when the Federal Reserve bank took away 4.7 trillion dollars from public funds meant for people’s welfare and deposited them in bank accounts of the super-rich.
“Years ago, all the countries had national central banks. It was noticed that there were a hindrance to the global money circulation because the banks were guided by the interests of their countries. Then came a concept proposing to make these banks independent. This independence is given by removing all the rights of the electives of people to intervene in the central bank. The new law will rescind Parliament’s power to appoint top officials of the Central Bank. As of now, Parliament can summon Central Bank officials and question them. This would not be possible if the Central Bank of Sri Lanka Bill is passed. This would surely end the Central Bank’s national role. After the bank is done away with, President Ranil Wickremesinghe could come to Parliament and state that he did not rob the Central bank as there was no Central Bank to be robbed,” Jagoda said.
During an operation conducted in the dark hours of 01 Jan 26, the Sri Lanka Navy seized an Indian fishing boat and apprehended 11 Indian fishermen while they were poaching in Sri Lankan waters, off Kovilan of Kareinagar, Jaffna.
The Northern Naval Command spotted a group of Indian fishing boats engaging in illegal fishing, trespassing into Sri Lankan waters. In response, naval craft of the Northern Naval Command were deployed to drive away those Indian fishing boats from island waters off Kovilan.
Meanwhile, compliant boarding made by naval personnel resulted in the seizure of one Indian fishing boat and apprehension of 11 Indian fishermen who continued to engage in illegal fishing in Sri Lankan waters.
The seized boat (01) and Indian fishermen (11) were handed over to the Fisheries Inspector of Myliddy, Jaffna for onward legal proceedings.
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Tri-Forces donate LKR. 372 million, a day’s pay of all ranks to ‘Rebuilding Sri Lanka’ Fund
Members of all ranks from the Sri Lanka Army, Sri Lanka Navy and Sri Lanka Air Force have collectively donated a day’s basic salary to the ‘Rebuilding Sri Lanka’ Fund, which was established to restore livelihoods and rebuild the country following the devastation caused by Cyclone Ditwah.
Accordingly, the total contribution made by the Tri-Forces amounts to LKR. 372,776,918.28.
The cheques representing the financial contributions were handed over on Wednesday (31 December) at the Presidential Secretariat to the Secretary to the President, Dr. Nandika Sanath Kumanayake.
The donations comprised LKR. 250 million from the Commander of the Army, Major General Lasantha Rodrigo; LKR. 73,963,879.71 from the Commander of the Navy, Rear Admiral Kanchana Banagoda and LKR. 48,813,038.97 from the Commander of the Air Force, Air Marshal Vasu Bandu Edirisinghe.
Secretary to the Ministry of Defence, Air Vice Marshal Sampath Thuyacontha, was also present on the occasion.
The Ceylon Electricity Board (CEB) has submitted a proposal to the Public Utilities Commission of Sri Lanka (PUCSL) seeking an 11.57 percent increase in electricity tariffs for the first quarter of 2026, citing an estimated revenue shortfall and additional financial pressures, including cyclone-related damages.
According to documents issued by the PUCSL, the proposed tariff revision would apply to electricity consumption from January to March 2026 and includes changes to both energy charges and fixed monthly charges across all consumer categories, including domestic, religious, industrial, commercial and other users.
Under the proposal, domestic electricity consumers would face increases in unit rates as well as fixed monthly charges across all consumption blocks.
The CEB has estimated a deficit of Rs. 13,094 million for the first quarter of 2026, which it says necessitates the proposed 11.57 per cent tariff hike. The utility has noted that any deviation from this estimate whether a surplus or a shortfall will be adjusted through the Bulk Supply Tariff Adjustment (BSTA) mechanism and taken into account in the next tariff revision.
In its submission, the CEB said the proposed revision is aimed at ensuring the financial and operational stability of the power sector and mitigating potential risks to the reliability of electricity supply. The board-approved tariff structure for the first quarter of 2026 has been submitted to the PUCSL for approval and subsequent implementation, as outlined in Annex II of the proposal.
The CEB has also highlighted the financial impact of Cyclone Ditwah, which it said caused extensive damage to electricity infrastructure, with total losses estimated at around Rs. 20 billion. Of this amount, Rs. 7,016.52 million has been attributed to the first quarter of 2026, which the utility said has a direct bearing on electricity tariffs.
The CEB warned that if external funding is not secured to cover the cyclone-related expenditure, the costs incurred would need to be recovered through electricity tariffs in the second-quarter revision of 2026.
Meanwhile, the PUCSL has said that a decision on whether to approve the proposed tariff increase will be made only after following due regulatory procedures and holding discussions on the matter.
By Sujeewa Thathsara ✍️
Two people killed in magnitude 6.5 earthquake in Mexico
President Trump says the US has ‘captured’ Venezuelan President Nicolas Maduro and his wife and flown them out of the country
Navy seize an Indian fishing boat poaching in northern waters
US Coast Guard suspends search for survivors of Pacific boat strike
Venezuela’s capital hit by explosions, Caracas blames the US
Tri-Forces donate LKR. 372 million, a day’s pay of all ranks to ‘Rebuilding Sri Lanka’ Fund
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