CBSL offcials have no power to increase their salaries: WR

By Saman Indrajith

Justice Minister Dr. Wijeyadasa Rajapakshe told Parliament yesterday that the Central Bank of Sri Lanka (CBSL) officials had no powers to increase their salaries without the approval of Parliament in terms of the Constitution.

The Minister said that the manner in which the CBSL officials had got their salaries increased was wrong. “Parliament has powers over Public Finance in terms of the Constitution and that the Central Bank cannot increase the salaries of its employees without Parliamentary approval,” Dr. Rajapakshe said.

Minister Rajapakshe said that the argument by the CBSL that it had the independence to take decisions in terms of the new Central Bank Act was wrong. “It is wrong as any Act must come under the Constitution. The Central Bank was granted independence under the new Central Bank Act to ensure that it functions free of political intervention. We expected that the Central Bank would function according to the requirements of the country. Unfortunately, the Central Bank acted to increase its employees’ salaries as the first action,” he said.

SLPP dissident MP Mohammed Muzammil said no action had been taken pertaining to CBSL officials’ salary increase despite the matter being raised in Parliament for several days.

State Finance Minister Shehan Semasinghe said the government would take a decision on the Central Bank salary increase after the Committee on Public Finance (COPF) submits its report to Parliament.

Opposition and SJB Leader Sajith Premadasa said the government must not wait for the report of the COPF and said that the government must take a decision to withdraw the salary hike. “The Central Bank is not under the COPF, it is under the government,” Premadasa said.