Central Bank can’t go outside the law to implement arbitrary pay rises: COPA chairman

by Sanath Nanayakkare

The Central Bank of Sri Lanka can’t go beyond the laws of the country to have their officials’ and employees’ salaries increased arbitrarily just because the Central Bank has been given independence as a key institution of the country, Lasantha Alagiyawanna, the Chairman of the Committee on Government Accounts (COPA Committee) told the media on Saturday.

Responding to a query on excessive pay rises given for officials and employees at the Central Bank with no regulatory oversight, the COPA chair said,” There is no legal provision in our country that establishes the right of any public institution to spend the funds it earns as it wishes. Auditing and fiscal authority have not been decentralized in the country for any institution to do so.”

When asked about the parliament’s approval to a new law that ensures the independence of the Central Bank, he said,” That independence has been granted only to use their tools to ensure monetary and price stability for inclusive growth, and to conduct the affairs of the economy in an appropriate way free from political interference. It doesn’t mean that the Central Bank can go beyond the laws of the land to get their salaries increased arbitrarily. Therefore, there is no way we can agree with it.”

Meanwhile, State Minister, Janaka Wakkumbura said at a political meeting on Saturday that granting independence to key institutions such as the Central Bank without political oversight is coming home to roost.

“Some time ago, there was a popular demand in the country to grant independence to the Central Bank to function effectively without political interference. And today, we are seeing the consequences of that decision. This goes to show that rescinding political authority in public institutions may not augur well for the people of this country.”