ECONOMYNEXT – Sri Lanka’s central bank has agreed to suspend a steep salary hike from next month, Harsha de Silva, until fair solution is found, chairman of the parliament’s Committee on Public Finance said.
The central bank paid its staff salary hikes of 70 percent or more after the latest currency crisis it triggered by rate cuts, impoverishing a large section of the population.
The central bank has claimed that it is independent under a new law, but the COPF insisted that it came under the constitution where control of public finances was vested with parliament.
“The central bank’s accountability to parliament established,” de Silva said in an x.com (twitter) message in shorthand twitter speak.
“Central Bank Governor informed COPF today that they accepted all recommendations from COPF report on salary revisions.
“President Ranil Wickremesinghe to review salaries, until which salary increases will be deferred from next month.”
#CBSL Accountability to @ParliamentLK established. Gov @CBSL informed COPF today that they accepted ALL recommendations from COPF report on salary revisions. Pres @RW_UNP to appoint a committee ASAP to review salaries, until which salary increases will be deferred from next month
— Harsha de Silva (@HarshadeSilvaMP) March 21, 2024
Sri Lanka’s central bank busted the rupee from 4.70 to the US dollars from the time it was created in 1950 to 360 to the US dollar in 2022 with inflationary policy.
But it has allowed the currency to appreciate to 303 to the US dollar since March 2022, amid deflationary policy (selling down CB-held securities) under Governor Nandalal Weerasinghe. (Colombo/Mar20/2024)