Central Bank's Salary Hike Sparks Parliamentary Debate on Fiscal Responsibility: Parliament Business Committee to Take up Matter on March 05

Parliament finds itself at odds with the Central Bank over a recent salary hike implemented for bank employees, sparking debate over fiscal responsibility amidst economic constraints.

The Central Bank's decision to increase salaries, ranging from 29.53 to 79.97 percent, has raised eyebrows, particularly as the government has called for fiscal restraint across state institutions. Notably, the monthly pay for the Central Bank's duty governor skyrocketed to Rs.1.7 million from Rs.974,965.

Criticism mounted swiftly over what many deemed an excessive raise, prompting the Central Bank to pledge clarity to Parliament. In a statement, the bank expressed willingness to explain the rationale behind the decision, citing legal provisions for communication with Parliament.

Parliament's Business Committee, led by Speaker Mahinda Yapa Abeywardena, convened to address the issue, resolving to summon Central Bank officials for a meeting on March 5.

While some lawmakers argue for Parliament's intervention given its oversight of public finances, others contend that the Central Bank, as an autonomous body, operates independently within the law.