Central Bank pay hike controversy:

By Saman Indrajith

The MPs who met a group of officials from the Central Bank of Sri Lanka (CBSL) yesterday found that the controversial salary increments of the CBSL workers had been based on a collective agreement. Some of the MPs argued that the collective agreement should be abolished.

The meeting with CBSL officials was attended by over 50 MPs of both the government and Opposition and commenced around 11.30 am at the Committee Room 2 and continued till 1.30 pm.

The CBSL officials made a presentation and the room was open for MPs to raise questions. They first met the party leaders and then the Committee of Public Finance members and MPs. The second meeting was also attended by officials of the Attorney General’s Department. The Speaker presided over the first meeting.

Chief Opposition Whip Kandy District SJB MP Lakshman Kiriella said. “I asked them to point out the legal provision for what they did and name a section or an Act of Parliament giving powers to them to decide their own salaries. They could not cite such provision,” Kiriella said.

The CBSL salary increments amount to around Rs 232 million a month. “I was the one who first raised this issue in the House. This morning, too, I demanded to know from the government what the standpoint of the Cabinet is because the summoning of CBSL officials to Parliament had been discussed at Monday’s Cabinet meeting.

The Cabinet ministers, too, have expressed their displeasure. At the meeting with CBSL officials, four government MPs spoke, and none of them approved of what the CBSL officials have done,” Kiriella said.

CBSL Governor Dr. Nandalal Weerasinghe stated that there were provisions in Sections 5, 8 and 23 of the CBSL Act for the slaries of the CBSL officials to be increased.

Kiriella pointed out those sections expressly made provisions for the expenses of the CBSL but not about salary increases. Section 23 stated about determining the amount of salaries provided that it is approved finally by Parliament.

SLPP dissident MP Gevindu Cumaratunga pointed out that the problem had been created by the government by passing a Bill to make the CBSL independent, but neither the Prime Minister, leader of the House, Chief Government Whip, nor the Finance Minister or State Finance ministers were present at this meeting. “We opposed this Bill and voted against this. Now those who created this mess are not present to question the CBSL officials,” Cumaratunga said.

Kiriella said that the government looked the other way when CBSL officials got their salaries increased. The government did not increase the salaries of professors, doctors, university teachers and other professionals, but kept silent when the CBSL officials got it done for themselves. The government must give answers. One of the CBSL secretaries told me that with the recent increment, she draws a monthly salary equal to ten times of the monthly salary of a ministry secretary. They collected money from tins and distributed it among themselves by barrels, he said.

Cumaratunga pointed out that the money handled by the CBSL officials were public funds therefore they are responsible to Parliament which has supremacy over the matters pertaining to the use of public funds.

TNA MP Sumanthiran, too, expressed the same view. He said that the CBSL did not earn money but uses the public money.

The CBSL officials responded that the salary increment was done as per the provisions of a collective agreement.

Gamapaha District MP Lasantha Alagiyawanna demanded to know from the CBSL officials whether that collective agreement was registered with the Labour Department.

MP Dayasiri Jayasekera said that a collective agreement to be valid should be registered with the Labour Department and became valid only after the Labour Commissioner gazettes it.

The collective agreement in question was neither registered nor gazetted, as such it is not a valid collective agreement, Jayasekera said.

As per Articles 148 and 149 (2) of the Constitution, Parliament had the powers over the use of public funds, he said, adding that the CBSL, too, was coming under that purview despite that there are wrong interpretations of the CBSL Act passed recently to give independence to the Central Bank. It is stated in that Act that money remaining in the Central Bank should be directed to the Consolidated Fund, and that meant the CBSL, too, come under the institutions responsible to Parliament.

Jayasekera said that the operations of collective agreements could be suspended. The operations of collective agreements in the CEB, CPC, and Harbour have been suspended.