News
CBSL defends itself, but confirms our report – The right of reply
View(s):The Central Bank’s Communications Department Director has drawn attention to an item published in this column last week under the title ‘Central Bank puts austerity in docket’.
The CBSL in a response said:
“We write with reference to the above news article published in the “Sunday Times” on 18 September 2022.
“The above news article claimed that irrespective of extraordinary austerity measures adopted to curb state expenditure ‘the Central Bank of Sri Lanka (CBSL) where one of its top officials sought approval from the Monetary Board to use state funds amounting to Rs. 6.2 million to cover the expenses of an official trip to the US next month.’ Further, the said news article reported that ‘From January 2020 till June this year, several members of the Monetary Board drew payments for taking part in Monetary Board meetings and another special allowance for being part of the sub-committee. One member who served in both capacities drew Rs. 3.22 million during the period, while another member politely declined any fees for the services he rendered’.
“The CBSL, by exercising its right to respond, would like to make the following clarifications:
“Upon attaining the membership of the International Monetary Fund (IMF) in August 1950, Sri Lanka, as all other member countries, has been attending the annual meetings of the IMF and the World Bank Group, whenever they are convened. These meetings are usually attended by the Hon. Minister of Finance, and the officials of the Ministry of Finance and the CBSL. In addition, the Hon. State Minister of Finance is also scheduled to attend the annual meetings of the IMF and the World Bank Group in October 2022.
“Unlike in the past, attending the annual meeting of the IMF and the World Bank Group, which will be held in October 2022, will be very essential for Sri Lanka as at this juncture due to its ongoing negations to give effect to the Staff-level agreement reached to obtain the support of the IMF for Sri Lanka’s economic stability with a 48-month arrangement under the Extended Fund Facility (EFF) of about US$ 2.9 billion. Discussions are expected to be continued with the senior officials of the IMF during the said annual meetings and several side-line discussions will also be held with, inter alia, participating senior representatives of the other nations, multilateral agencies, creditors and other investors on matters of mutual interest including the debt restructuring
initiatives and bridge financing
for Sri Lanka.
“Accordingly, the CBSL, as the entity responsible to ensure price and economic stability, and the financial system stability of the country, wish to reiterate that it is mindful of using the extremely scarce resources of the country in the most sustainable manner and only for essential purposes. Except for such extremely essential purposes similar to attending the annual meetings of the IMF and the World Bank Group or official engagements with other multilateral agencies, the CBSL has curtailed all other overseas travel, unless it is at no cost to the CBSL.
“In addition, the CBSL, like any other public corporation/state owned enterprise, makes allowances to the members of the Monetary Board, excluding its Chairman, and to members of the Board appointed sub-committees on a per sitting basis. These allowances are made at a rate which has been approved by the Hon. Minister of Finance in consultation with the Hon. President in terms of the provisions of the Monetary Law Act, No. 58 of 1949, as amended. The rates at which such allowances are currently being made have been so approved by the Minister of Finance in January 2016 considering the specific nature and the scale of operations of the Monetary Board. Any member of the Monetary Board has a right to accept or not
to accept the said sitting allowance based on the personal
circumstances.”
Jamis Banda’s Reporter notes: The CBSL confirms the news report while explaining
its position.
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