March 07, Colombo (LNW): The Central Bank came under fire from MPs on Tuesday 05 when officials of the monetary regulatory authority were summoned to justify the controversial decision regarding the significant salary hike for its employees.
During the Party Leaders’ meeting convened on the matter, MPs voiced their discontent over the move, labelling it as a violation of the law. Separately the CBSL matter was taken up before the Committee on Public Finance CoPF.
Discontent was voiced at Tuesday’s Party Leaders’ meeting in Parliament over the unilateral decision to raise the salaries of employees at the Central Bank of Sri Lanka.
The Party Leaders’ meeting took place under the chairmanship of Speaker Mahinda Yapa Abeywardena, and a cohort of senior CBSL officials, including Central Bank Governor Dr. Nandalal Weerasinghe and representatives from trade unions, participated.
The party leaders highlighted an intriguing aspect, noting that the recent Central Bank of Sri Lanka Act, which had initially included provisions for autonomous salary adjustments, underwent a significant alteration.
The reason behind this change lies in a Supreme Court determination, which stipulated that any such salary modifications required a two-thirds majority approval.
While the new act aimed to grant the Central Bank greater independence in its operations, it inadvertently omitted a mechanism for salary increments based on independent decisions, they said.
The party leaders conveyed a stern message to the Central Bank officials: while it may be legally permissible, insensitively raising salaries during a period of national hardship is ethically questionable and unacceptable.
Furthermore, they astutely observed that privileges should not be confined to a single group. Numerous sectors are grappling with the need for salary increments, and fairness demands that these considerations extend beyond a select few.
Adding to the gravity of the situation, it was revealed that the salary hike will result in an additional expenditure of nearly Rs. 232 million per month.
Despite this, officials, including. Nandalal Weerasinghe, emphasized that Sections 5, 8, and 23 of the Act do indeed provide for such provisions. They noted that these sections empower the Central Bank to utilize its own funds for all administrative, managerial, and operational expenses.
However, the party leaders astutely observed that while the bill acknowledged expenses, it remained silent on the matter of salaries.
They pointed out that according to Section 23 of the Act, although the party leaders possess the authority to determine salary adjustments, the final approval rests with the Parliament.
The party leaders emphasized that the Central Bank’s funds ultimately belong to the people. Consequently, they asserted that the Parliament, as the custodian of public finances, must grant approval.
Regarding the recent wage increase, officials clarified that it adheres to a longstanding tradition: a triennial collective agreement between trade unions and management. This practice has been consistent over the years.
March 07, Colombo (LNW): British Conservative peer Lord Michael Naseby on Tuesday called on the British government to assist Sri Lanka by updating Britain’s Travel Advisory on Sri Lanka to provide more accurate information, in order to better assist the country.
“It is the UK’s Foreign, Commonwealth and Development Office (FCDO) comments on that country (Sri Lanka) that currently cause me concern because they refer to the fact that protests are going on when they are not.
They say that there is a fuel shortage, but there is not and has not been for 18 months. They also say that there are other difficulties of a terrorist nature, which we have not had for five years,” Lord Naseby told the House of Lords that held a seven-hour debate on Britain’s Foreign Affairs.
Claiming that tourism sector is rapidly recovering in Sri Lanka, Lord Naseby believed that more British tourists would visit the country if the FCDO provided more accurate Travel Advisory information on Sri Lanka.
While commending the progress of the Sri Lanka’s own Truth and Reconciliation Commission, Lord Naseby highlighted the standard of those in Sri Lanka’s legal profession, as evidenced by his good friend, the late Sir Desmond De Silva, and said that ‘the quality of lawyers in Sri Lanka is second to none’. “
As it is set up, it will of course be across the ethnic groups—it has to be. There are people there who are thoroughly objective, he added.
The UK has relaxed its travel advisory on Sri Lanka giving a much needed big boost to the struggling tourism industry due to multiple crises.
The UK Government in its latest foreign travel advice said it no longer advises against all but essential travel to Sri Lanka. Pre-COVID UK was the second largest tourist source market for Sri Lanka.
The Sri Lanka Association of Inbound Tour Operators (SLAITO) expressed delight over the UK Government’s latest travel advisory update.
“With this positive news we hope several EU countries also will follow what others – France, Norway and Switzerland have already done by way of relaxing travel advisories,” SLAITO said.
“We will be participating at the World Travel Market in London which will also give us an opportunity to meet our tour operators and promote Sri Lanka,” SLAITO added.
It also said SLAITO members are thankful to the UK High Commission and Ambassador of France, Switzerland and Norway and Tourism Minister Harin Fernando for their unstinted support.
President Ranil Wickremesinghe asserted that the nation’s economy is experiencing robust growth as a result of the government’s initiatives. Consequently, he pledged further assistance to the people in the future. Stressing the methodical and scientific execution of these endeavours, the President emphasized his commitment to truthfulness over political gain. He clarified that his current endeavours are dedicated to national reconstruction rather than personal power accumulation.
Addressing Parliament today (06), President Wickremesinghe lamented the tendency of certain political factions to prioritize rhetoric over tangible solutions. He argued that the intricacies of the country’s economic challenges defy simplistic remedies, urging those versed in economic matters to acknowledge this reality. With the government’s strategy yielding tangible results, he urged swift legislative action to cement these gains, signalling the forthcoming submission of the Economic Reforms Act.
In conclusion, President Wickremesinghe urged a collective decision on whether to persist with the current trajectory, which promises economic revitalization, or risk regression to the dire circumstances of eighteen months prior.
Following is President Ranil Wickremesinghe full address to the Parliament on 06th March 2024,
It is widely acknowledged that our country has achieved a certain level of economic stability at present. However, there are individuals who criticize the programs we enact without demonstrating acceptance of them. Despite the apparent strength of the economy, there are accusations that the general populace isn’t experiencing its benefits. Furthermore, there are claims of unnecessary tax burdens on the people, as well as excessive hikes in electricity bills and fuel prices. There’s a commonly held belief that taxes should be collected from the people gently, akin to plucking flowers without crushing them. However, criticism is directed towards us for not adhering to this principle. Yet, it’s important to note that these critics overlook the opportunities available to harvest flowers while crushing them to generate revenue. This lesson is quite profound. Under typical conditions, it’s feasible to extract nectar without damaging the flowers. However, in the intermediate space, this isn’t always possible, as the situation differs significantly.
Today, we find ourselves journeying towards intermediate space, but our path has recently led us across a dangerous economic vine bridge. We find ourselves in a precarious situation due to several factors contributing to the collapse of our economy into bankruptcy. One significant reason is the short-sighted decisions made by past governments. Their failure to implement sustainable economic policies has exacerbated our current challenges. Additionally, various political parties have opposed numerous constructive government initiatives, leading to disruption and hindrance of positive work plans.
The destruction of public property further exacerbates the situation, adding to the economic turmoil we face.
Consequently, our nation requires a structured economic blueprint, a robust financial plan to navigate through these challenges. Despite several attempts to implement such a plan, we’ve struggled to do so consistently due to the lack of continuous opportunities.
I would like to excerpt a segment from an article authored by Dr. Chandima Wijebandara in 1989, published in the Budhusarana newspaper. In the mentioned article, Dr. Chandima Wijebandara discusses the “Kootadantha Sutra”, a teaching expounded by the Buddha. “Development is unattainable without a blueprint. The ‘Kootadantha Sutra’ from the’ Dīgha Nikāya’ explains the vital importance of such plans for development. It illustrates how a government, faced with an anti-government crisis raised by the proletariat in an underdeveloped nation, managed to develop the country through a structured plan. This plan is grounded in state-based economic strategies. Moreover, the sutra reveals that the public thrived not only economically but also enriched themselves in terms of values, fostered positive social relations, and lived contentedly and harmoniously.” We failed to adhere to a scientific and methodical approach like the one outlined. Certain groups obstructed the implementation of such a strategic plan.
Consequently, the ramifications are evident in the country’s current state. It has plunged into bankruptcy, unable to repay loans and withstand the economic pressures. During this period, the entire society, from ordinary citizens to major entrepreneurs, endured severe hardships. Power outages became commonplace, ushering in an era of long queues and scarcity. Countless individuals lost their livelihoods as businesses and industries crumbled. Some even opted to flee the country altogether. The nation found itself engulfed in turmoil, descending into an economic abyss. Amidst these trials, the country teetered on the brink of disorder. Governance faltered, and control slipped away, leading to grave danger not only on an economic front but also in terms of social and political stability. No individual stepped forward to confront the frightening task of reversing this dire situation. Despite invitations extended, all declined the opportunity. None possessed the courage to confront the raging inferno head-on and extinguish it.
Amidst the reluctance of others, I courageously accepted the challenge for the betterment of our country. Venturing into the heart of the crisis, I tirelessly worked to extinguish the flames of adversity. Today, the nation reaps the rewards of those arduous efforts, and I am grateful for the unwavering support of those who stood by me during this exhausting endeavour. We embarked on a methodical journey, collaborating with the International Monetary Fund to devise a comprehensive economic plan. Through the diligent execution of this plan, the nation gradually returned to stability. The burdens eased, and the clouds of distress began to dissipate. Before this esteemed House, I would like to present some economic indicators that vividly illustrate this progress. Our economy, which experienced consecutive contractions for six quarters from 2022 to the second quarter of 2023, began to show signs of recovery from the third quarter of 2023 onwards.
Forecasts from international financial organizations suggest that we are poised to achieve a growth rate of 2-3% this year.
Notably, in 2023, we managed to bolster state revenue by over 50% compared to the previous year. Furthermore, we attained a surplus in the primary account last year. This enabled us to settle all outstanding payments owed to contractors who had rendered services to the government over the past three to four years. In the first eight months of 2022, major state-owned enterprises collectively incurred a staggering loss of Rs. 720 billion. However, in the corresponding period of 2023, we successfully transformed this into a profit of Rs. 313 billion. Despite the closure of numerous businesses amid the economic crisis, the resurgence of the economy has encouraged the establishment of new ventures. In 2022, the Company Registrar recorded the registration of 17,819 companies, a figure that rose to 22,376 in 2023. Additionally, in January 2024, 1,995 new companies were registered. Through coordinated macroeconomic demand management efforts between the Central Bank and the Government, inflation dropped from 70 % in September 2022 to a significantly lower 5.9 % by February 2024.
Interest rates have undergone a significant reduction, dropping from over 30% in 2022 to less than 10 % in 2023. This decrease has brought relief to small and medium-sized enterprises (SMEs) and consumers, particularly as inflationary pressures ease. Moreover, the usable foreign exchange reserves, which stood at less than US$ 20 million in mid-April 2022, have surged to surpass US$ 3 billion. Import restrictions have been lifted, with the exception of private motor vehicles. In a notable milestone, the balance of payments achieved a surplus in the current account for the first time since 1977, during the year 2023. This achievement has led to a depreciation of the US$ from Rs. 363 to Rs. 308 as of yesterday, marking a strengthening of the Sri Lankan Rupee.
The impact of this economic progress is evident throughout society today. How many individuals embark on pilgrimages to Anuradhapura and Siripada from hand tractors to large buses? How many undertake journeys to Talawila and Madu Church for religious purposes? How many indulge in leisurely trips to Nuwara Eliya? How many individuals park their cars on the side of the road, open their trunks, and initiate small businesses due to their inability to repay the loans they obtained? And are they now experiencing a sense of freedom? How challenging is it to secure a seat on a long-distance coach? How many travellers fill the unreserved compartments? How many tourists explore every corner of the country? A nation that once struggled to leave their homes is now traversing freely. Previously, they couldn’t afford to put a drop of oil in their car to rush a sick person to the hospital or accompany a deceased loved one to the cemetery. People faced challenges such as not having gas for cooking at home, leading many to prepare meals outdoors. A nation that, when a child fell ill, would go from house to house in the middle of the night searching for a Paracetamol pill.
However, this situation has undergone a remarkable reversal. There are critics who question the economic progress we currently experience, attributing it to the temporary suspension of loan payments. They argue that once the debt is repaid, the nation will regress into a state of hardship. They describe the current situation as an interval in hell, suggesting that despite the apparent progress, underlying challenges remain unresolved. I’d like to underscore that the criticism lacks a factual basis.
Currently, we are actively engaged in discussions regarding the restructuring of all loans, including domestic and foreign loans. We are optimistic that these negotiations will reach a successful resolution soon. Our goal is to obtain temporary relief from debt defaults from 2023 to 2027. Subsequently, we plan to diligently work towards repaying the loans in the period from 2027 to 2042.
Sri Lanka faces a significant burden of debt. By 2022, the country was slated to repay approximately US$6 billion in foreign debt annually, amounting to about 9.5% of the GDP, a considerable strain for any nation. Through successful negotiations for debt restructuring, we aim to alleviate this burden by reducing the annual foreign debt payments to 4.5% of the GDP, a substantial halving of the previous percentage.
If the current trend of economic growth, as observed in 2022 and 2023, persists, we can anticipate maintaining a high percentage of state income. In such a scenario, servicing the debt would no longer pose a burden on the country.
Currently, we have managed to elevate state revenue to nearly 11% of the Gross Domestic Product (GDP). This increase necessitated the imposition of Value Added Tax (VAT). Undoubtedly, this decision was a bitter and challenging one.
We made the decision to implement such a tax with great reluctance. However, considering the economic ailment we face, there are no other viable options. We must endure this temporary pain for the greater good. The implementation of VAT has bolstered the government’s revenue, demonstrating to the international community our capacity to repay the debt. With the increase in government revenues and the revival of the economy, the rupee has strengthened. The strengthening of the rupee has led to a decrease in the prices of imported goods, including fuel. As a result, all VAT-paying companies are now reaping the benefits of the stronger rupee, which extends to the entire country. Furthermore, we anticipate additional benefits in the future.
So, if we continue our current trajectory with the same vigour, our economy will be in significantly better shape by the end of this year. Additionally, we’ve ceased the practice of using taxpayers’ money to cover the losses of government institutions. Instead, we’re restructuring these institutions and transferring them to investors.
The tax network will be expanded, with the total number of tax files surging to over 1 million in 2023, marking a 130% increase. The practice of printing money has been completely halted.
We’re actively pursuing essential legal reforms to strengthen and modernize the legal framework, systems, and processes, aiming to improve public financial and economic management for the benefit of all.
In a ground-breaking move for South Asia, the Governance Diagnostic Report has been released, and on-going efforts are underway to enhance governance and mitigate corruption risks. We’re also attracting investments and establishing a new institution for this purpose.
Efforts are underway to modernize the agriculture sector, with several foreign countries expressing interest in starting large-scale farms under food security initiatives. We’re gradually unlocking foreign markets for exports, focusing on non-traditional export items.
Our goal is to transform the country into a green and digital economy and establish it as a regional economic and service hub, with plans to make the Port City an international financial hub. However, this can only be achieved if we continue to execute our plan diligently.
The measures we’ve implemented so far have allowed us to provide numerous facilities and concessions to the majority of our citizens. Under the ‘Urumaya’ program, two million families will acquire land ownership, reclaiming inherited land lost over generations.
We’ve tripled social security spending to protect the poor and vulnerable from the economic crisis, benefiting 2.4 million low-income families with “Aswesuma.” Around 4.5 million school children are now covered by the “Suraksha” insurance scheme.
Every school teaching information technology now has smart classrooms, and 100,000 school children have received scholarships through the President’s Fund. The funds allocated to patients from the President’s Fund have been doubled.
Development initiatives have begun in numerous villages across 89 Divisional Secretariat divisions as part of the “Kandukara Dashakaya,” with each regional secretariat allocated Rs.100 million for this purpose. Development activities in constituencies are underway through the decentralized budget, and agricultural modernization initiatives have been launched across 25 Divisional Secretariats.
Tourism is on the rise, benefiting many individuals, and we’re working to further enhance its development. The economy, which had contracted, is now gradually recovering, leading to relief for the people.
We’ve suspended the Parate law for business establishments and offered relief on electricity bills this week. Additionally, we aim to exempt items such as books, school equipment, health equipment, and medicine from the VAT list to continue reducing the VAT rate.
We’re diligently strengthening the economy each day, striving tirelessly to improve the lives of our people and fortify the economy. Our actions are guided by a strategic plan, ensuring a systematic and methodical approach.
Some suggest retail solutions or collecting funds from Sri Lankans abroad, but these are deemed inadequate by those with economic knowledge. Currently, we must decide whether to continue on our current path, reaping the benefits of our economic trajectory, or risk returning to a state of distress.
To sustain our current course, I anticipate presenting the necessary ordinances and regulations to Parliament, including the Economic Reform Act. My actions are not driven by personal popularity or power but by a dedication to the future of the country.
While certain segments of society have faced hardships due to our current practices, we’re striving to uplift the entire society and establish a sustainable economy where growth benefits all. As Professor Henpitagedara Gnanavasa Thero emphasized in 1983, addressing economic problems collectively is key to fostering societal peace and happiness.
Let’s execute our economic plan in this manner to resolve the issues and strengthen the economic practice of uplifting the entire society. I urge all members of this assembly and all Sri Lankan citizens to join us in this righteous journey.
President Ranil Wickremesinghe says the future distribution of emerging economy benefits to a larger population: asserts systematic implementation of activities based on a scientific plan: emphasises integrity in leadership, never compromised for power, and prioritising national reconstruction over personal ambitions: laments politicians are dreaming of power while ignoring reality.
Former Minister Basil Rajapaksa, to meet President Ranil Wickremesinghe to discuss future political arrangements ahead of elections: The meeting comes amidst the formation of electoral alliances and discussions on the order of elections: SLPP factions have already expressed support for the President, but no formal decision has been made.
The NPP vows not to impede the IMF programme if elected but aims to renegotiate its terms: criticises current austerity measures and caution against privatising public assets: Prof. Anil Jayantha underscores the need for homegrown solutions to stabilise the economy, criticises the government’s handling of economic challenges, and pledges to engage constructively with the IMF while ensuring transparency.
ACMC MP Ali Sabri Raheem’s parliamentary services are suspended for one month following a recommendation from the Committee on Ethics and Privileges: The decision stems from an incident last May when Raheem was caught with undeclared gold and smartphones upon returning from Dubai.
The IMF begins the second review of Sri Lanka’s EFF program today: Finance State Minister Shehan Semasinghe highlights its importance for stability and growth: Success could lead to accessing the programme’s third tranche, boosting confidence in the economy.
The Sri Lanka Posts Department aims to achieve a revenue target of Rs. 21 billion in 2024, aiming for self-sustainability without Treasury funding: Postmaster General Ruwan Sathkumara highlights a shift towards becoming a business service provider, forging partnerships with the private sector, including a recent collaboration with UPS: Despite a revenue of Rs. 13.6 billion last year, the department incurred a Rs. 3.2 billion loss.
In January, Experience Travel Group and 35 others urge the UK’s FCDO to reconsider its travel advice on Sri Lanka, criticising references to outdated issues like fuel shortages and past unrest: Conservative peer Lord Naseby echoes concerns in the House of Lords, calling for a review. Managing Director Sam Clark welcomes this development, hoping for updated advice that reflects Sri Lanka’s current situation without harming its tourism industry.
CB Governor Nandalal Weerasinghe cautions against undermining the Central Bank’s autonomy, citing recent controversy surrounding its salary increases: emphasises the importance of the CB’s autonomy in setting wages and salaries to avoid undue influence, citing past lessons: defends the transparency of the salary review process while warning that compromising the bank’s autonomy could lead to economic instability, as witnessed in 2019.
State Minister Arundika Fernando announces the government has kickstarted vital development projects amidst growing interest from India, China, and Western nations in investing in Sri Lanka: Initiatives include a 2,000-house project in Colombo with Chinese aid, issuing deeds to flat residents, progress on rural development projects like “Kandukara Dashakaya,” and coastal development activities: highlights significant interest from major nations, signalling confidence in investing in Sri Lanka amid improving economic conditions.
Bangladesh clinched an 8-wicket victory over Sri Lanka in the second T20 game in Sylhet, leveling the series: Najmul Hossain Shanto’s unbeaten 53 and Tawhid Hridoy’s 32 not out steered Bangladesh to victory: SL’s innings saw struggles with Avishka Fernando out for a duck, while Kusal Mendis scored 36: Despite efforts from Angelo Mathews and Dasun Shanaka, Sri Lanka posted 165: Bangladesh’s solid start ensured an easy win with 11 balls to spare: The final T20 match is set for March 9 in Sylhet.
March 07, Colombo (LNW): The National People’s Power (NPP) has outlined its stance regarding the International Monetary Fund (IMF) programme, stating that if elected to power, it would not obstruct the programme but rather seek to renegotiate its terms and conditions.
NPP representatives emphasised concerns over the current austerity measures, which they argue have placed undue burdens on the populace.
Additionally, they expressed apprehension regarding government attempts to privatise public assets, cautioning against potential adverse economic consequences for the nation.
Speaking on behalf of the NPP, Prof. Anil Jayantha, a member of the party’s economic council, highlighted the necessity for expedited actions in the debt restructuring process.
He underscored the importance of implementing homegrown solutions to stabilise the economy, asserting the NPP’s readiness to devise plans aimed at unlocking growth potential, augmenting government revenue, replenishing foreign reserves, and fostering sustainable economic development.
Prof. Jayantha criticised the current government’s handling of economic challenges, suggesting that earlier negotiations with creditors and exploration of alternative strategies could have mitigated the present situation.
Despite being halfway through the IMF programme, he stressed the NPP’s commitment to a pragmatic approach, indicating a willingness to engage constructively while also conducting inquiries into specific credit agreements to ensure transparency and accountability in fund utilisation.
March 07, Colombo (LNW): Deputy Speaker Ajith Rajapakshe on Wednesday (06) announced in Parliament that ACMC MP Ali Sabri Raheem’s parliamentary services will be suspended for one month, effective immediately.
This decision comes in light of the Committee on Ethics and Privileges’ recommendations.
During the parliamentary session, MPs approved a resolution proposing the suspension of MP Raheem from participating in parliamentary proceedings.
The suspension follows an incident in May last year when MP Raheem was apprehended by Sri Lanka Customs officials at Katunayake Airport upon his return from Dubai.
The MP was found in possession of undeclared gold weighing over 3 kilograms, valued at Rs. 74 million, and 91 smartphones valued at more than Rs. 4.2 million.
As a consequence, MP Raheem was fined Rs. 7.5 million and released upon payment. The undeclared items were confiscated by customs authorities.
March 07, Colombo (LNW): State Minister for Urban Development and Housing, Arundika Fernando, announced the commencement of significant development endeavors during a press briefing at the Presidential Media Centre yesterday (06), under the theme ‘Collective Path to a Stable Country.’
Addressing the nation, State Minister Fernando underscored the government’s proactive response to the economic crisis, which had previously impeded development projects.
As the economy exhibits signs of improvement, essential development initiatives have been initiated to address pressing needs and catalyse growth.
Key highlights of the minister’s address include:
Launching a housing project comprising 2000 units in Colombo and its suburbs, with support from Chinese aid, aimed at addressing housing shortages.
Facilitating the issuance of deeds to residents of flats to ensure proper documentation and ownership rights.
Progressing with the “Kandukara Dashakaya” Development Project, focusing on rural development.
Commencing coastal and low-lying land development activities to facilitate regional-level development projects across the island.
Readying the Colombo Hilton Hotel for private sector investment, with interest already expressed by four businessmen. Emphasis is placed on securing expected financial investment for project success.
Advancing the Hyatt Hotel project, seeking an investor for its completion, and proposing development opportunities along DR Wijewardene Mawatha.
Successfully concluding preliminary work for the Japanese project aimed at cleaning the Beira Lake in Colombo, with commencement slated for next month.
Implementing a comprehensive flood control programme for Colombo city to mitigate flood risks and protect infrastructure, pending necessary financial allocation.
Noteworthy interest from countries like India, China, and various Western nations reflects growing confidence in investing in Sri Lanka, signaling promising opportunities for economic growth and development.
The Central Bank came under heavy fire from the Members of Parliament yesterday. During the Party Leaders’ meeting convened on the matter, MPs voiced their discontent over the move to increase salaries by 70% without government approval , labelling it as a violation of the law. Several MPs argued that the Central Bank lacked the legal authority to unilaterally raise its staff salaries without prior approval from Parliament, adding to that this decision has resulted in an additional monthly expenditure of Rs. 232 million to the CbSL.
Moral integrity
The MPs also criticized the moral integrity of the Central Bank, highlighting the contradiction of increasing its employees’ salaries, whilst introducing policies that hike taxes such as PAYE and VAT for other segments of the workforce. Central Bank Governor Dr. Nandalal Weerasinghe defended the salary hikes, citing provisions within the Central Bank Act that empower the institution to determine and adjust salaries as necessary. He also underscored that these provisions were not only present in previous legislation, but also in the current law. This argument was shot down by the MPs. Separately during the Parliamentary session yesterday, Dr. Charitha Herath raised concerns about the legitimacy of the purported three-year collective agreement of the Central Bank, pointing out that it has not been approved by the Labour Ministry and considering it a mere document. MP Dayasiri Jayasekara criticised the Central Bank officials, accusing them of serving their own interests while penalising others with their powers. He highlighted the disparity in interest rates, noting that Central Bank employees enjoy rates as low as 1% whilst the general public faces rates as high as 20.5%.Adding to the heated discussion, MP Suresh Raghavan issued a stark warning, suggesting that if there were to be another wave of public unrest akin to the Aragalaya movement, bureaucrats’ houses would be targeted instead of politicians’.The decision to implement steep salary hikes for CBSL staff sparked concerns amid debates over the autonomy of the Central Bank and the implications of recent legislative changes. The IMF must be held accountable for this.
CBSL Poor Performance
The CBSL is largely responsible for the economic mayhem. For the following four Reasons;
Borrowing USD from international markets at commercial rates between 2015-2020
Declaring bankruptcy without parliamentary approval for 65$ Million.
Jacking interest rates to 30% without any concern for the SMEs, public and Corporate sector . Making over 25% of the SMEs bankrupt and also pushing government borrowing up by 16% by issuing long term bonds at 30%
Allowing local bond holders to making a killing ; classic cases first capital and Capital Alliance
A commission must be appointed to review these decisions and the impact these decisions had on livelihood of people. if found guilty their civic rights should be removed or fined. The current governing body has one banker who retired over 25 years ago . Knows nothing on technology. There is an uncle and nephew on the governing board . How much is the governing board members paid . Over 3 million each annually?
Conclusion
The CBSL by increasing salaries by 70% arbitrarily has failed the nation. It is a shameful to say the least whilst they heap taxes on the general public. Central Bank ‘s independence should therefore be limited only to make decisions on behalf of the country without restrictions and outside influences to manage price levels, but not for their personal benefit. If the law is not clear on this, the Parliament has the responsibility to amend it. The Central Bank must be held accountable for their actions . If the Governor and the Governing Council had any decency they would have all resigned yesterday. The perks are too good for them to leave the Central Bank.
The governing body
a) Dr. Nandalal Weerasinghe, Governor of the Central Bank of Sri Lanka, as the Chairman, b) Mr. Sanjeeva Jayawardena, President’s Counsel, who was previously, a member of the Monetary Board as well, c) Mr. Nihal Fonseka, who also was previously, a member of the Monetary Board, d) Dr. Ravi Ratnayake, e) Mr. Anushka Wijesingha. F) Manil Jayasinghe G) Amerasekara Rajiv
March 07, Colombo (LNW): The Sri Lanka Posts Department has articulated its ambition to achieve a revenue target of Rs. 21 billion for the fiscal year 2024, aiming to operate as a self-sustaining entity independent of Treasury funding.
Postmaster General Ruwan Sathkumara elaborated on the department’s strategic shift towards becoming a business service provider rather than solely a public service entity.
Sathkumara highlighted the department’s proactive engagement in forging strategic partnerships with the private sector to address revenue shortfalls and strive for financial viability.
Notably, the department recently entered into a collaboration agreement with the global logistics and package delivery company, United Parcel Service (UPS).
Sathkumara shared these insights on the sidelines of the launch event for a commemorative stamp marking Hatton National Bank’s 135th anniversary.
It marked a significant milestone for the Posts Department, which issued its first-ever first-day cover stamp to a private bank.
In the preceding fiscal year, the department reported a revenue of Rs. 13.6 billion but incurred a loss of Rs. 3.2 billion.
March 07, Colombo (LNW): In January, Experience Travel Group, alongside 35 co-signatories, published an open letter urging the UK’s Foreign, Commonwealth & Development Office (FCDO) to revise its travel advice concerning Sri Lanka.
The letter criticised the FCDO’s references to fuel and food shortages dating back to the 2022 political unrest and continued mentions of the 2019 terrorist attacks, deeming the current guidance “excessively severe.”
It asserted that such advisories were detrimental to Sri Lanka’s travel industry and suggested that the UK government was inadvertently undermining the sector.
Conservative peer Lord Naseby raised concerns in the House of Lords regarding the accuracy of the FCDO’s comments, noting discrepancies such as references to ongoing protests and fuel shortages that, according to him, were not reflective of the current situation in Sri Lanka.
Lord Naseby urged Foreign Secretary David Cameron to review and potentially amend the guidance, proposing that representatives from the Experience Travel Group be included in discussions with junior ministers to address the matter.
Managing Director of Experience Travel Group, Sam Clark, described Lord Naseby’s intervention as a significant development in their advocacy efforts.
He expressed gratitude for the opportunity to engage with the Foreign Office and voiced hope that constructive dialogue would lead to updates in the travel advice that accurately represent Sri Lanka’s situation without causing undue harm to its tourism-dependent economy.
Clark emphasised the importance of updating the FCDO’s advice to reflect the current realities in Sri Lanka, underscoring the need for travelers to have access to accurate and reliable information for informed decision-making.
