Central Bank urged to defer salary increase amid public outcry

The Committee on Public Finance (COPF) has issued a recommendation urging the Central Bank of Sri Lanka (CBSL) to defer the proposed salary increase until a mutually agreeable solution is reached. 

This directive was outlined in the COPF report on the Central Bank Salary Revision 2024-2026, presented to the parliament by the committee's chairman, Dr. Harsha de Silva, on Wednesday (March 20).

The COPF compiled this report following a request from President Ranil Wickremesinghe, who serves as the Finance Minister, in response to mounting concerns raised by several Members of Parliament regarding the substantial salary hike. The COPF has echoed the general sentiment of opposition to the increase.

In its recommendations, the COPF has called for the immediate appointment of an independent remuneration committee, with the approval of the Central Bank Governor, to thoroughly review the proposed salary adjustments. The committee is expected to submit a comprehensive report within four weeks. Until then, the COPF advises that the Central Bank postpones the salary increase.

Furthermore, the COPF emphasized the importance of including members from both within and outside the Central Bank, as well as from diverse sectors, in the independent remuneration committee. This inclusive approach aims to ensure a balanced and transparent evaluation of the salary structure, taking into account the expertise of specialized staff and the comparability of salaries within the Central Bank.

The COPF has proposed a separation in determining salaries between professional and non-professional staff, advocating for a transparent formula to guide future revisions in CBSL staff remuneration. This move is intended to address concerns regarding fairness and consistency in salary adjustments across different staff categories.