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Sri Lanka wouldn’t have been in crisis if CBSL had floated rupee in April last year –Dr. Wijewardena
By Shamindra Ferdinando
Former Deputy Governor of the Central Bank, Dr. W. A. Wijewardena says the country wouldn’t have been in the current predicament had the Monetary Board floated the Rupee in April 2021, six months before Ajith Nivard Cabraal succeeded Prof. W.D. Lakshman.
Consultant on banking, finance and economics, Dr. Wijewardena said so when The Island sought clarification regarding declaration on ‘Hiru’ on Sunday (13) that the incumbent government since Dec 2019 squandered as much as USD 5,500 mn trying to prevent the depreciation of Rupee. Dr. Wijewardena explained how the failure on the part of the Monetary Board to take remedial measures at the required time caused a catastrophe.
Dr. Wijewardena pointed out that Cabraal, who succeeded Prof. Lakshman, too, failed to address the issue. Cabraal quit his SLPP National List seat to receive the Governor’s post on Sept 15, 2021. Cabraal served as State Minister of Money and Capital Market and State Enterprise Reforms at the time of his resignation.
The retired CB Deputy Governor emphasised that the much touted ‘road map for economic recovery’ that had been announced on Oct. 1, 2021, didn’t recommend depreciation of the Rupee. The outspoken former CBSL official said that the depreciation of the Rupee/floating of the Rupee hadn’t been among the remedial measures announced by the incumbent governor.
The much-delayed decision to float the Rupee in the second week of March this year should be examined against the backdrop of the overall failure of the so-called ‘road map for economic recovery’ to achieve its targets within six months, Dr. Wijewardena told The Island.
Responding to Hiru interviewer, Dr. Wijewardena said that though CBSL expected the country to receive as much as the USD 10.5 mn during Oct-Dec, 2021 period, it didn’t materialise. Alleging that the timing of the floating of the Rupee had been unnecessarily delayed, Dr. Wijewardena asserted that the consequences could be quite devastating. The veteran banker compared the cash-strapped Sri Lanka economy with an uncontrolled kite.
Dr. Wijewardena cited the pathetic failure on the part of the entire banking system to meet USD 16 mn requirement to pay for a crude oil carrier underscored the crisis the country faced. Responding to The Island queries, Dr. Wijewardena questioned the culpability of the Monetary Board as regards the handling of the economy.
The current five-member Monetary Board consists of the Governor Cabraal (ex-officio), Treasury Secretary S.R. Attygalle (ex-officio), Sanjeewa Jayawardena, PC, Dr. Mrs. Ranee Jayamaha and Samantha Kumarasinghe. Mrs. Jayamaha, an ex-Deputy Governor, CBSL and Multichemi International Ltd Chairman Kumarasinghe joined the Monetary Board in late June 2020 whereas Jayawardena received his appointment in Feb 2020.
The Monetary Board couldn’t absolve itself of the responsibility for the current crisis, Dr. Wijewardena said, urging the government to review the entire situation without further delay.
Basil Rajapaksa replaced Mahinda Rajapaksa as the Finance Minister in July last year.
According to Dr. Wijewardena, the banking system experienced a critical shortage of Rupees in addition to the foreign currency crisis. Dr. Wijewardena estimated that the current Rupee shortage at Rs 700 bn.
Dr. Wijewardena urged the CBSL to immediately increase bank interest rates from 7.5 percent to at least 15 as an initial measure to address the crisis. Dr. Wijewardena, who had served the CBSL for over 40 years emphasized that the recent decision to increase interest rates from 6.5 % to 7.5% was not adequate at all.
Sri Lanka couldn’t address the developing crisis by securing limited funds from India, China and Bangladesh. Instead, the assistance of the International Monetary Fund (IMF) should be secured, the veteran banker pointed out, adding that those who dismissed repeated calls to seek IMF help to restructure Sri Lanka’s debt should accept responsibility for the pathetic state of affairs today.
He compared a country’s foreign reserves with that of savings of an individual. “Savings are utilized in an emergency,” Dr. Wijewardena said, pointing out the absurdity in using foreign reserves to protect/prop up local currency. The ex-banker recalled how the Thai government moved court against the Governor of its Central bank Rerngchai Marakanond for spending USD 4.6 bn or 2.5 bn Pounds to prop up Baht during 1990s financial crisis. The Bangkok Civil Court in May 2005 directed Marakanond to reimburse the Bank of Thailand within a month, Dr. Wijewardena said. Although, the Supreme Court cleared him a decade later, the case established culpability of a decision maker/ decision makers in such a situation.
As the Parliament is accountable for public finance and enactment of laws, the responsibility of the House, too, should be examined, Dr. Wijewardena said.
News
Matara Festival for the Arts’ inaugurated by the Prime Minister
The inaugural ceremony of the Matara Festival for the Arts, featuring a wide range of creations by local and international artists, was held on February 19 at the Old High Court premises of the Matara Fort, under the patronage of Prime Minister Dr. Harini Amarasuriya.
The festival, centred around the Old High Court premises in Matara and the auditorium of the Matara District Secretariat, will be open to the public from 20 to 23 of February. The festival will be featured by visual art exhibitions, short film screenings, Kala Pola, and a series of workshops conducted by experts.
The inaugural event was attended by the Minister of Women and Child Affairs, Ms. Saroja Paulraj, along with artists, guests, and a large number of schoolchildren.
(Prime Minister’s Media Division)
News
Only single MP refuses salary as Parliament details pays and allowances
Only one Member of Parliament has chosen not to receive the salaries and allowances entitled to MPs, Prime Minister Dr. Harini Amarasuriya revealed in Parliament last Thursday, shedding light on the financial perks enjoyed by members of the Tenth Parliament.
Speaking on Thursday (Feb. 19) in response to a question from SJB Badulla District MP Chaminda Wijesiri, the Prime Minister outlined the full range of pay and allowances provided to parliamentarians.
According to Dr. Amarasuriya, MPs receive a monthly allowance of Rs. 54,285, an entertainment allowance of Rs. 1,000, and a driver’s allowance of Rs. 3,500—though MPs provided with a driver through the Ministry of Public Security and Parliamentary Affairs are not eligible for the driver’s allowance.
Additional benefits include a telephone allowance of Rs. 50,000, a transport allowance of Rs. 15,000, and an office allowance of Rs. 100,000. MPs are also paid a daily sitting allowance of Rs. 2,500 for attending parliamentary sessions, with an additional Rs. 2,500 per day for participation in parliamentary sittings and Rs. 2,500 per day as a committee allowance.
Committee meetings held on non-parliament sitting days also attract Rs. 2,500 per day.
Fuel allowances are provided based on the distance between an MP’s electoral district and Parliament. National List MPs are entitled to a monthly allocation equivalent to 419.76 litres of diesel at the market price on the first day of each month.
Despite the comprehensive benefits, only SJB Badulla District MP Nayana Wasalathilaka has opted not to draw a salary or allowances. Dr. Amarasuriya said that in accordance with a written notification submitted by MP Wasalathilaka on August 20, 2025, payments have been suspended since that date.
The Prime Minister also confirmed that she, along with the Speaker, Deputy Speaker, committee chairs, ministers, deputy ministers, the Opposition Leader, and senior opposition whips, have all informed the Secretary-General of Parliament in writing that they will not claim the fuel allowance.
Challenging the ruling party’s voluntary pledge to forgo salaries, MP Wijesiri pointed out that all MPs except Wasalathilaka continue to receive their salaries and allowances. “On one hand you speak about the people’s mandate, which is good. But the mandate also included people who said they would voluntarily serve in this Parliament without salaries. Today we have been able to prove, Hon. Speaker, that except for one SJB MP, the other 224 Members are drawing parliamentary salaries,” he said.
The Prime Minister responded by defending the political culture and practice of allocating portions of MPs’ salaries to party funds. Referring to previous practices by the JVP and NPP, she said: “It is no secret to the country that the JVP has for a long time not personally taken MPs’ salaries or any allowances. I think the entire country knows that these go to a party fund. That is not new, nor is it something special to mention. The NPP operates in the same way. That too is not new; it is the culture of our political movement.”
When MP Wijesiri posed a supplementary question asking whether diverting salaries to party funds was an indirect method of taking care of MPs, Dr. Amarasuriya said: “There is no issue there. No question was raised; the Member made a statement. What we have seen throughout this week is an inability to understand our political culture and practice, and a clash with decisions taken by political movements that misused public funds. What is coming out is a certain mindset. That is why there is such an effort to find fault with the 159. None of these facts are new to people. He did not ask a question, so I have nothing to answer.”
The disclosures come days after the Government moved to abolish the parliamentary pension, a measure that has sparked renewed debate over MP compensation and the transparency of funds allocation.
News
Illegal assets of underworld figures frozen since September, Minister tells parliament
Public Security and Parliamentary Affairs Minister Ananda Wijepala on Friday (20) disclosed in Parliament details of properties and assets allegedly acquired through illegal activities by suspects arrested in raids carried out since September last year.
The Minister made the disclosure in response to a question raised by MP Ravindra Bandara, stating that the identified assets have been frozen pending further investigations.
He said the assets include properties belonging to several alleged organised crime figures, among them Mandinu Padmasiri, alias ‘Kehelbaddara Padme’, who was arrested last year.
Listing the assets in the House, the Minister said Hapugoda Arachchige Kankanamge Duminda Dilruk has assets worth Rs. 23 million frozen, including a van, a motorcycle, a house and a roller gate.
In the case of Kandaiya Kalamogan, two motorboats have been identified, although their value has not yet been assessed.
Dilum Tharaka Balasuriya is reported to own a two-storey house situated on 15 perches of land with a face value of Rs. 800,000.
Assets belonging to Mohammad Harish Mohammad and Mohammad Shiyam were frozen on January 21, 2026. While the total value has not yet been assessed, five vehicles were confiscated from the former and a car from the latter.
Wijesuriya Mahaduruge Uditha Iroshan Wijesiri has assets valued at Rs. 5 million, including a lorry, while Indika Pathmakumara’s assets include a cab worth Rs. 2.5 million and a bank account containing Rs. 1 million.
Lahiru Sampath is reported to own a three-wheeler valued at Rs. 1.8 million.
According to the Minister, Hettiarachchige Dona Sriyani Chandralatha possesses a four-storey house and 14.7 perches of land valued at Rs. 60 million.
Mandinu Padmasiri, alias ‘Kehelbaddara Padme’, owns 20 perches of land with partially constructed buildings valued at Rs. 30 million and a half-finished six-room building worth Rs. 20 million, the Minister said.
Patabendi Maddumage Shehan Sathsara, alias ‘Dehi Bale Malli’, has five multi-day fishing trawlers valued at Rs. 200 million and a two-storey house with 15.8 perches of land worth Rs. 50 million.
The Minister further disclosed that Jayasinghege Maduranga Sampath owns a cab worth Rs. 5.4 million, a van valued at Rs. 14.5 million, five bank accounts containing Rs. 73.03 million, another account with Rs. 160,328.88 and USD 544, and Rs. 283 million in cash.
Adhikari Samantha Perera is reported to own 10.10 perches of land valued at Rs. 5 million and one acre and 1.5 perches of land worth Rs. 13 million.The Minister said investigations are continuing in respect of the suspects and the frozen assets.
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