Charitha raises concerns over CBSL’s perceived independence from State

Wednesday, 8 May 2024 00:38 - - {{hitsCtrl.values.hits}}

Says overall summary of CBSL annual report suggests a clear distinction between CBSL and the State
Expresses concern that certain CBSL officials seem to believe it is no longer a part of the State following passing of new CBSL Act
Urges Speaker to present report to CoPF or a Sectoral Oversight Committee to be investigated
MP Wimal Weerawansa urges all top officials of CBSL to be summoned to parliament to explain report’s contents

MP Prof. Charitha Herath

MP Wimal Weerawansa

Freedom People’s Congress (FPC) member MP Prof. Charitha Herath yesterday highlighted several serious concerns regarding the contents of the Central Bank of Sri Lanka (CBSL) annual report for the year 2023.

During his address in parliament, MP Prof. Charitha Herath remarked that the overall summary of the report suggests a clear distinction between the Central Bank of Sri Lanka (CBSL) and the State, implying they are perceived by the CBSL as two distinct entities.

“The text opens by stating ‘As implemented by the State and the Central Bank of Sri Lanka,’ despite the CBSL being an entity that falls under the state apparatus. We typically categorise entities as Government and Central Bank, or Ministry of Finance and Central Bank, or Treasury and Central Bank. Here, the term ‘state’ has been used instead of ‘Government.’ Such a categorization as ‘state and central bank’ is improper. If such a categorization were valid, there would be no necessity to present this report in parliament,” he remarked. The MP expressed concern that certain officials within the Central Bank now seem to believe that it is no longer a part of the state following the passing of the new Central Bank Act.

He also pointed out that according to the report, only the CBSL has taken necessary steps, while the cabinet has not taken any action in relation to fiscal policies. He urged the Committee on Public Finance (CoPF) or a Sectoral Oversight Committee to investigate the report.

MP Wimal Weerawansa said the opposition objected to the bill because it separates the CBSL from the State. “This is evident from the CBSL’s presentation in this report. They are operating under the assumption that the CBSL and the state are distinct entities,” he remarked. The MP said this is a serious issue and all officials of the CBSL should be summoned to explain the contents of the report. He also called for the report to be corrected.

Leader of the House Susil Premajayantha said the Speaker has the authority to call upon CBSL officials to provide clarification, either before the Committee on Public Enterprises (COPE) or the Committee on Public Finance (COPF).