Wijeyadasa insists CBSL has no authority to increase salaries

Wednesday, 20 March 2024 02:08 - - {{hitsCtrl.values.hits}}

Justice, Prison Affairs and Constitutional Reforms Minister Dr. Wijeyadasa Rajapakshe

Asserts Parliament’s authority over public finance
Notes it is regrettable CBSL’s initial action under new Central Bank Act was to raise its employee salaries
Claims CBSL’s understanding about its independence to make decisions under new legislation is erroneous
Opposition in Parliament voices concern over lack of action on Central Bank’s salary hike
Sajith says Central Bank is not under the CoPF but under the Government

Justice, Prison Affairs and Constitutional Reforms Minister Dr. Wijeyadasa Rajapakshe yesterday told the Parliament that the Central Bank has no authority to increase the salaries of its employees without the prior approval of Parliament as per the Constitution.

He stressed that the Central Bank does not have the authority to unilaterally increase salaries of its employees without Parliamentary consent since the Parliament holds jurisdiction over public finance according to the Constitutional provisions.

The Minister dismissed the perception that the Central Bank Act grants the institution unchecked independence.

“All legislation must adhere to Constitutional principles, accountability and oversight in financial matters,” he told the House.

He criticised the prioritisation of the salary increment for Central Bank employees, particularly as the institution was entrusted with independence to safeguard against political interference.

Dr. Rajapakshe expressing disappointment over the Central Bank’s decision stressed the importance of the banking regulator operating in sync with the national interests.

“The Central Bank was granted independence under the new Central Bank Act to ensure its operations are free from political interference. We anticipated that the Central Bank would operate in accordance with the nation’s needs. Regrettably, the Central Bank’s initial action was to raise its employees’ salaries,” he said.

Opposition MP Mohammed Muzammil said no action has been taken regarding the salary increase despite the matter being raised in Parliament for several days.

State Minister of Finance Shehan Semasinghe said the Government will take a decision on the Central Bank salary increment once the Committee on Public Finance (CoPF) submits its report to Parliament.

Opposition Leader Sajith Premadasa said the Government must not wait for the report of the CoPF, adding that Government must take a decision to withdraw the salary hike.

“The Central Bank is not under the CoPF, it is under the Government,” Premadasa said.

Marikkar claims CBSL staff willing to reduce salaries amid Trade Union resistance