Bandula Gunawardana goes to court against Active Liability Management Bill

Saturday, 24 February 2018 00:01 - - {{hitsCtrl.values.hits}}

Claims Bill shifts powers to Minister from CBSL

By S. S. Selvanayagam

Former Deputy Finance Minister Bandula Gunawarda filed a petition before the Supreme Court yesterday seeking a special determination on the proposed Active Liability Management Bill.

Gunawarda claimed that the Bill is drafted with a view to abrogating the powers of the Central Bank and shifting such powers directly and/or indirectly to the Minister. He charged that this is tantamount to abdicating legislative powers of the people exercised through Parliament.

The immunity given by a clause to public servants and members of the Monetary Board from civil and criminal liability, the MP said in his petition, is irrational and capricious and endangers the country’s economy and national security and would lead to acts of fraud and corruption.

The said Bill was presented to Parliament and placed on the Order Paper on 19 February 2018, and is an Act to authorise raising loans in or outside Sri Lanka for the purpose of active liability management to improve public debt management in Sri Lanka and to make provisions for related matters.

Among other things, Gunawardana noted that certain clauses of the Bill deprive and abrogate the powers of Parliament to have full control over public finance as well as deprive and abrogate the powers and duties of the Central Bank and the Monetary Board to manage public debts.

According to Gunawardana, the Clauses empower the Minister and the Cabinet of Ministers with the authority to be in charge of and thereby to regulate and control the affairs of and matters in relation to public debt.

He said that the Bill could enact a law with “retrospective effect” which defeats and nullify the Budget speech of the Government presented to Parliament, as well as the Appropriation Act.

The Bill is in conflict with the provisions of the Fiscal Management (Responsibility) Act, added Gunawardana, reiterating that it is intended to curtail the control powers of Parliament over public finance.