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Monday June 3rd, 2024

IMF urges transparency in Sri Lanka Central Bank’s salary benchmarking

ECONOMYNEXT – The International Monetary Fund (IMF) urged Sri Lanka’s Central Bank’s transparency to justify its salary hike following the recent controversy over a steep wage hike without parliamentary approval, while the rest of the public sector is under a salary restraint.

The Central Bank under increased the salaries of its employees between around 70 percent or more a triennial pay revision.

The move angered the public sector employees and legislators as the government had issued fiscal authority directive to tighten the belts.

The move without any parliament approval was seen as a wrong procedure after a new Central Bank Act that had given more autonomy for the Apex bank to handle the monetary policy without any political interventions.

“We don’t have much to say with respect to the salary hike,” Peter Breuer, the IMF Mission Chief to Sri Lanka told reporters at a media briefing after the global lender’s conclusion of the second review of $3 billion, 4-year loan.

“What’s important is that there is a high degree of transparency from the part of the Central Bank to explain how it is benchmarking its decisions and the key is preserve the central bank’s independence.”

According to disclosures made in the parliament the salary of an Office Assistant Grade I increased by 29.53 percent to 188,827.33 and a Deputy Governor by 76 percent to 1,728,419 rupees a month.

According to the constitution, parliament has the full powers on the public finance.

Some legislators raised the issue in the parliament assuming that the Central Bank used the new Act to bypass the parliament approval.

Central Bank officials explained that the salary increase had nothing to do with the new Act, but has been done under decades old practice through a collective agreement.

The top officials of the Central Bank appeared before the Committee on Public Finance (COPF) later.

The new Central Bank Act, which was an IMF demand for the 3 billion dollar loan, was passed in parliament later last year.

“The Central Bank’s Accountability to the parliament established. Governor of the central bank informed COPF today that they accepted all recommendations from COPF report on salary revisions,” Harsha de Silva said in his X (formerly Twitter) feed on Thursday (21).

“President Ranil Wickremesinghe is  to appoint a committee ASAP to review salaries, until which salary increases will be deferred from next month,” he said.

In its recommendations, the COPF has said the Finance Minister should, with immediate effect, appoint an independent remuneration committee with the concurrence of the Central Bank Governor to review the salary increase under discussion.

The COPF further noted that the members of this independent remuneration committee need to be co-opted from the Central Bank as well as from outside; both within and outside the public sector as necessary.

The Central Bank has agreed to the COPF conditions, de Silva said. (Colombo/March 22/2024)

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Water levels rising in Sri Lanka Kalu, Nilwala river basins: Irrigation Department

Sri Lanka Navy assisting in rescue operations (Pic courtesy SL Navy)

ECONOMYNEXT – Sri Lanka’s Irrigation Department has issued warnings that water levels in the Kalu and Nilwala river basins are rising and major flooding is possible due to the continuous rain. People living in close proximity are advised to take precautions.

“There is a high possibility of slowly increasing prevailing flood lowline areas of Kiriella, Millaniya, Ingiriya, Horana, Dodangoda, Bulathsinhala, Palinda Nuwara and Madurawala D/S divisions of Ratnapura and Kalutara Districts, up to next 48 hours,” it said issuing a warning.

“In addition, flood situation prevailing at upstream lowline areas of Ratnapura district will further be prevailing with a slight decrease.

“The residents and vehicle drivers running through those area are requested to pay high attention in this regard.

“Disaster Management Authorities are requested to take adequate precautions in this regard.”

The island is in the midst of south western monsoon.

DMC reported that 11,864 people belonging to 3,727 families have been affected due to the weather in Rathnapura, Kegalle, Kilinochchi, Jaffna, Mullaitivu, Kalutara, Gampaha, Colombo, Galle, Matara, Hambantota, Puttalam, Kurunegala, Kandy, Nuwara Eliya, Anuradhapura, Polonnaruwa, Badulla, Moneragala, and Trincomalee districts.

Meanwhile, the Meteorology Department stated that showers are expected on most parts of the island today.(Colombo/June3/2024)

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UNP gen secy defends call for postponing Sri Lanka poll, claims opposition silent

The UNP party headquarters in Pitakotte/EconomyNext

ECONOMYNEXT — United National Party (UNP) General Secretary Palitha Range Bandara has defended his call for postponing Sri Lanka’s presidential election by two years, claiming that his proposal was not undemocratic nor unconstitutional.

Speaking to reporters at the UNP headquarters Monday June 03 morning, Bandara also claimed that neither opposition leader Sajith Premadasa nor National People’s Power (NPP) leader Anura Kumara Dissanayake have spoken against his proposal.

“I have made no statement that’s undemocratic. My statement was in line with provisions of the constitution,” the former UNP parliamentarian said.

He quoted Section 86 of Chapter XIII of the constitution which says: “The President may, subject to the provisions of Article 85, submit to the People by Referendum any matter which in the opinion of the President is of national importance.”

Sections 87.1, 87.2 also elaborates on the matter and describes the parliament’s role, said Bandara.

“I spoke of a referendum and parliament’s duty. Neither of this is antidemocratic or unconstitutional. As per the constitution, priority should be given to ensuring people’s right to life,” he said.

“Some parties may be against what I proposed. They may criticse me. But what I ask them is to come to one position as political parties and make a statement on whether they’re ready to continue the ongoing economic programme,” he added.

Bandara claimed that, though thee has been much criticism of his proposal for a postponement of the presidential election, President Wickremesinghe’s rivals Premadasa and Dissanayake have yet to remark on the matter.

“I suggested that [Premadasa] make this proposal in parliament and for [Dissanayake] to second it. But I don’t see that either Premadasa nor Dissanayake is opposed to it. To date, I have not seen nor heard either of them utter a word against this. I believe they have no objection to my proposal which was made for the betterment of the country,” he said. (Colombo/Jun03/2024)

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300 of 100,000 trees in Colombo considered high risk: state minister

ECONOMYNEXT – Trees in Sri Lanka’s capital Colombo are being monitored by the municipal council, Army and Civil Defense Force as the severe weather conditions continue, State Minister for Defense Premitha Bandara Tennakoon said.

“Within the Colombo Municipal Council city limits, there are 100,000 trees. Of these, around 300 are considered high risk,” Tennakoon told reporters at a media conference to raise awareness about the current disaster management situation.

Not all trees required to be cut down he said. “We can trim some of the branches and retain them.”

The problem was that buildings in the vicinity of the tree had cut branches on one side, causing it to become unbalanced, the minister said.

New laws would be brought in so provincial/municipal institutions could strengthen enforcement of building codes.

“We don’t have a single institution that can issue a warning about a tree. Not one to tell us what trees can or cannot be planted near a road.

“Trees should be suitable for the area. Some trees have roots that spread and damage roads, buildings. When the roots can’t go deep, they tend to topple over.

“Now Environment Day is coming up, and anyone can go plant a tree by the road. We have to take a decision about this. We have to enforce laws strongly in future.” (Colombo/June3/2024)

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