Editorial
Brouhaha over pay hikes
Monday 04th March, 2024
The Central Bank of Sri Lanka (CBSL) is drawing heavy flak for having granted its workers generous pay hikes amidst a crippling economic crisis. Its critics are arguing that such salary increases, allegedly ranging from 29% to 70%, should not have been given at a time when the government is asking other state employees as well as the public to tighten their belts; their argument has struck a responsive chord with the irate public, as evident from a reader’s letter published in this newspaper today.
Some critics of the CBSL have gone to the extent of blaming the pay hikes at issue on the Central Bank of Sri Lanka Act, No. 16 of 2023., which was introduced to ensure the independence of the CBSL, which has disputed their contention by pointing out that the salary increases were worked out according to a collective agreement, which came into being during President Chandrika Bandaranaike’s tenure in 2000, and had nothing to do with the CBSL Act.
The CBSL says it was left with no alternative but to abide by the 24-year-old collective agreement which a group of trade unions, including those representing the UNP, the SLPP and the JVP, is also a party to, as regards the triennial pay revision; its workers will not receive salary increments until 2027, the CBSL has said. The violation of a collective agreement is a justiciable offence, and if the CBSL had refused to grant pay hikes in keeping with the pact, the trade unions would have resorted to legal action against it, triggering a labour dispute at the bank of banks, which should be free from such trouble at this juncture.
Parliament has granted the CBSL’s request for a meeting to present its side of the story. This is something overdue. That meeting should have taken place much earlier. It has been reported that a CBSL delegation is scheduled to appear before the Committee on Public Finance (COPF) tomorrow. The CBSL should make available to the public and Parliament all information about the pay hikes granted to its employees in the past and the percentages thereof, under successive governments, and reveal if the current pay hikes are unusually higher than the previous ones.
It is hoped that the COPF will ask all necessary questions anent the CBSL salary revision issue when it meets the CBSL top brass. It ought to find out the percentages that the CBSL workers’ pay hikes average per annum and compare them with what the professionals in other sectors are entitled to, besides revealing the selection criteria governing the CBSL recruitments, and the educational and professional qualifications of the CBSL officials.
Now that Parliament has undertaken to probe the CBSL pay hike issue, it should grasp the nettle; it ought to address the root cause thereof. If it thinks the CBSL workers do not deserve the salary increases or the pay revision should be postponed in view of the current economic situation, it ought to explore ways and means of amending or abolishing the collective agreement at issue. There is no other way out. If there are labour laws preventing Parliament from dealing with the issue, let them be amended or done away with forthwith.
Much is being spoken about parliamentary sovereignty, which, according to the Westminster tradition, means that Parliament can create or end any law in a constitutionally prescribed manner. So, the current Parliament of Sri Lanka should be able to do away with the collective agreement pertaining to the CBSL pay revisions if it so desires. The SLPP, the UNP and the JVP leaders ought to pressure their trade unions that are signatories to the collective agreement between the CBSL workers and their management to be considerate enough to heed the country’s pecuniary woes and agree to lower pay increases. However, Parliament will have to take responsibility for the consequences of such a course of action; the CBSL says it has already lost a large number of experts, who have migrated and joined international financial institutions. What will happen to the ongoing economic recovery efforts if more CBSL personnel vote with their feet in a huff in the event of being deprived of pay hikes? This problem however will not arise in respect of the CBSL drivers and peons!
The legislators who have taken moral high ground should also reveal whether there have been increases in their own salaries and/or allowances over the past two years or so. Above all, they should tell the public whether compensation has been paid for damages that the SLPP MPs’ properties suffered at the hands of violent protesters in 2022, how much was spent, and whether the victims had declared those assets officially and disclosed how funds were raised for their acquisition.
Public funds must not be used to pay compensation for damages to ill-gotten assets of politicians. Let the MPs also be urged to disclose how much parliamentary sittings cost the public a day, and how they propose to tackle the problem of absenteeism among them and the resultant inquorate sessions which amount to an utter waste of public funds. Besides, the public has a right to know the educational and professional qualifications of the MPs they maintain, or at least the ministers, who draw much bigger salaries than most bankers.
One can only hope that the legislators will get to the bottom of the CBSL pay hike issue, and sort it out once and for all, instead of bellowing rhetoric and, above all, respect the people’s right to information in respect of the remuneration and perks of the MPs, most of whom are notorious for dereliction of duty, inefficiency, misconduct, and various malpractices.
Saturday 8th June, 2024
It was with shock and dismay that we received the news about death threats to COPF (Committee on Public Finance) Chairman Dr. Harsha de Silva over the ongoing parliamentary probe into the on-arrival visa scam. Dr. de Silva yesterday told Speaker Mahinda Yapa Abeywardena, in Parliament, that he was facing death threats and intimidation, and it was incumbent upon Parliament to ensure his safety. He stopped short of naming names, but revealed that some ruling party MPs were among those who had ganged up against him. The Speaker only said there had been no complaint, and he would look into the matter.
The SLPP-UNP government has been doing everything in its power to have all parliamentary committees under its thumb. The COPE (Committee on Public Enterprises), which once helped restore public faith in the legislature by exposing state sector corruption, has now become a mere appendage of the incumbent regime, thanks to the appointment of SLPP MP Rohitha Abeygunawardena as its Chairman. The SLPP-UNP combine also tried to oust COPF Chairman Dr. de Silva, but in vain. However, it knows more than one way to shoe a horse.
The COPF, under Dr. de Silva’s chairmanship, has been a thorn in the side of the government, which is struggling to cover up numerous corrupt deals. Dr. de Silva yesterday told Parliament that he found it extremely difficult to function as the COPF head due to severe resource constraints his committee was facing; he himself had to pay the salaries of some of his staff members besides burning the midnight oil.
The sheer workload he had to cope with as the COPF chief had taken its toll on his health, he said, informing the Speaker that he was at the end of his tether, and at times thought of resigning from the COPF. This is exactly what the government wants him to do; resource squeezes and threats are aimed at making him quit.
On 26 May, Dr. de Silva revealed, in an ‘X’ post, that the COPF had uncovered some vital information about the visa scam and it would reveal everything after its final meeting on the issue; the COPF was committed to exposing the truth behind the controversial tender, he added. In an editorial comment on 27 May, we warned him.
While thanking him for his bold stand, we pointed out that by making such a statement, he had thrown caution to the wind, and become a marked target, with the government making an all-out effort to delay the COPF investigation lest the truth should come out much to the detriment of its interests in this election year. Unfortunately, what was feared has come about; Dr. de Silva is complaining of death threats and government moves to strangulate the COPF financially to derail its investigations.
Dr. de Silva’s predicament exemplifies the fate that befalls the few good men and women in Parliament. It is hoped that all those who seek an end to the state sector corruption will rally behind Dr. de Silva, and bring pressure to bear on the government to ensure his safety. Let Dr. de Silva be urged to reveal the names of those who have issued threats, veiled or otherwise, to him and are trying to scuttle the COPF probes.
Friday 7th June, 2024
The SLPP-UNP government is going hell for leather to make bad laws as if there were no tomorrow. It is abusing its parliamentary majority, which has been retained with the help of some crossovers, for that purpose. The Opposition, the media and trade unions are up in arms, and understandably so. The incumbent regime is a dead man walking; it is so desperate that it is capable of anything. Hence the need for it to be restrained.
The Electricity (Amendment) Bill (EAB) plunged Parliament into turmoil yesterday, but the government secured its passage. The Supreme Court (SC) determined the entire EAB inconsistent with the Constitution and recommended changes thereto. After unveiling the Bill, sometime ago, Minister of Power and Energy Kanchana Wijesekera hailed it as an excellent piece of legislation aimed at straightening up the power sector to serve the public interest better.
The SC determination left him with egg on his face. He reminded us of the proverbial curate who, while eating a stale egg, assured his host, a Bishop, that parts of it were excellent. Wijesekera’s egg, as it were, made Parliament stink yesterday, but he sought to please his masters by praising it as a silver bullet.
EAB should have been discarded and a new one drafted in consultation with all stakeholders. But the government is apparently driven by an ulterior motive; its aim is not to serve Sri Lanka’s interests but to look after those of some moneybags.
It is not uncommon for Bills to contain some flaws, which are rectified either before or during the committee stage. But there is something terribly wrong with draft Bills that are full of sections inconsistent with the Constitution. The drafters of EAB have demonstrated their sheer ignorance of the supreme law, and that they are not equal to the task of drafting Bills. If they had read the Constitution at least perfunctorily, they would not have drafted such a bad law.
Ignorant and incompetent, they do not deserve to be paid with public funds and must be sent back to law school. They must be summoned before Parliament and questioned on their serious lapses, which have caused public faith in the national legislature to diminish.
Curiously, the MPs who demand that judges, doctors, Central Bankers, and other public officials be summoned before Parliament have taken badly drafted Bills for granted. The power sector trade unions yesterday alleged that EAB was of Indian origin and geared towards furthering the interests of Adani Group at the expense of Sri Lanka.
Most critics of EAB are agreeable in principle to the need for power sector reforms; the Ceylon Electricity Board should be given a radical shake-up, and transformed into a modern organisation capable of providing a better service at a lower cost. They only asked the government to tread cautiously, consulting all stakeholders and taking action to ensure that the country’s interests prevailed over everything else. But the government was in a mighty hurry to steamroller the Bill through Parliament, making the Opposition ask whether it was doing so at the behest of some external forces involved in controversial power generation deals here.
What is passed by the current Parliament can be either amended or abolished by a future parliament in a constitutionally prescribed manner. But that does not mean that a government is free to pass bad laws, making the country enter into long-term agreements with powerful nations and their investors. It looks as if the SLPP-UNP regime did not care two hoots about the consequences of its actions.
Thursday 6th June, 2024
The outcome of India’s parliamentary election (2024) has led to a ‘perspective ambiguity’. Prime Minister Narendra Modi lost no time in declaring victory for the BJP-led NDA alliance, which secured 293 seats in the 543-member Parliament, but he must be a worried man. The BJP is short of 32 seats to form a government under its own steam; it has lost 63 seats or about 20% of its parliamentary strength. It had 303 seats in the previous Parliament, and that number has dropped to 240.
Modi has become the second Indian Prime Minister to win a third term. The first PM to do so was Jawaharlal Nehru. But Nehru won an outright majority in Parliament in 1962; Modi has had to depend on smaller parties in his alliance to retain his hold on power. Modi must be reeling from a sharp drop in his victory margin in his own constituency, Varanasi; it has decreased to 152,000 from 480,000 in 2019 whereas Modi’s bete noire, Rahul Gandhi, won Raebareli by a staggering 390,000 votes.
Modi, who reigned supreme with 303 seats in the previous Parliament, is now dependent on parties such as Nitish Kumar’s JD-U and Chandrababu Naidu’s TDP to form a government. He has had to lead an alliance of strange bedfellows. Both Kumar and Naidu were bitter critics of Modi. Kumar helped form the oppositional alliance, the INDIA bloc, before switching his allegiance to PM Modi. Naidu also closed ranks with the BJP in the run-up to the election. These politicians have been described as extremely ambitious and highly unpredictable, and whether Modi will be able to manage them and consolidate his grip on the NDA alliance remains to be seen. They will demand plum ministerial posts in return for their support. The TDP is said to be eyeing Transport and Health portfolios! That is the name of the game in coalition politics, where it is not uncommon for the tail to wag the dog, so to speak. These two political leaders are however not the only problem Modi will have to contend with. The next five years will feel like an eternity for PM Modi.
Nothing would have been more shocking for the BJP than its defeat in Uttar Pradesh’s Faizabad constituency, where the Ram Mandir has been built. Modi may have thought he would be able to win the Lok Sabha election hands down after the consecration of that temple, which became a centrepiece of the BJP’s election campaign. The BJP lost that seat to the Samajwadi Party! Modi must be disappointed that the Ram Mandir hype failed to trigger a massive wave of support for his party. This particular defeat signifies a massive setback for the BJP’s ethno-religious agenda.
Modi’s divisive election campaign failed to yield the desired result. The BJP’s failure to secure an outright majority could be attributed to a host of factors, some of them being the suppression of the Opposition, the arrogance of power, chronic unemployment, and the rising cost of living. The BJP also did not care to reimage itself in a positive light to attract the youth.
Modi will hereafter see the Congress-led INDIA bloc with 223 seats, in his rearview mirror. The Congress (99 seats) and its allies have eaten into the BJP support base considerably, but they have a long way to go before being able to capture power.
The bumpy ride ahead for the BJP-led coalition government to be formed may improve the INDIA bloc’s chances of bettering their electoral performance and turning the tables on the BJP and its allies in time to come. Modi will have a lot to worry about in his third term.
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