MPs debate CoPF Report: Concerns mount over CBSL Act interpretation

The Members of the Parliament yesterday continued to debate on the growing concerns and differing interpretations regarding the role and authority of the Central Bank (CBSL), highlighting the need for clarity and consensus on matters of financial governance. 

MP Prof. Charitha Herath raised a point of order, expressing concerns about the implications of the CBSL salary hike report submitted by Committee on Public Finance (CoPF) Chairman Dr. Harsha de Silva on the future Parliamentary decisions.  He explained that the report's stance on the independence of the Central Bank of Sri Lanka Act raised potential issues, calling for clarification from the Attorney General.

 "In my opinion, the report misplaces the question of the CBSL Act's independence. Parliament must seek agreement from the Attorney General on this matter," MP Prof. Herath said. He further highlighted the need for a proper interpretation of Article 148 of the Constitution, challenging CBSL's assertion that public finance rights belong solely to the joint fund.

In response, Dr. de Silva assured MPs that they had already sought the Attorney General's opinion on the matter, addressing concerns raised by MP Herath.

Leader of the House and MP Susil Premajayantha underscored the Constitution is the supreme law of the country and it has a mandate granting Parliament control over public finances.

 He pointed out that the independence granted to CBSL is intended for the execution of the monetary policy without undue influence from the Treasury or political entities. 

Opposition leader Sajith Premadasa also said that CBSL's independence aims to prevent political interference in monetary policy implementation.

 Citing US President Harry S. Truman, who kept a sign 'the buck stops here' on his desk, which reflected his belief that he was ultimately responsible for the actions of his administration; Premadasa questioned the Prime Minister Dinesh Gunawardena why such actions are not being taken by the Government. “The CBSL was not given the autonomy to increase pay by 70% while the rest of the State sector employees and the public tightened their belts due to the ongoing economic crisis. Thus, the government must take immediate action to reverse their salary hike,” he asserted.

 Chief Opposition Whip Lakshman Kiriella weighed in, stating that the Election Commission is the only institution empowered to increase salaries without Parliamentary intervention, as stipulated in the Constitution.  He opined that if CBSL were to possess similar authority, it would be explicitly noted in the Constitution.