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By Ranjith Padmasiri  

The no-confidence motion against Speaker Mahinda Yapa Abeywardena and the controversial increase in the salaries of Central Bank staff were among the highlights of Parliamentary activities this week.

Opposition Leader Sajith Premadasa and 43 opposition members signed the motion, which was handed over to Parliament’s Acting Secretary General, Chaminda Kularatne. The motion is based on allegations that the Speaker failed to ensure that amendments proposed by the Supreme Court were included in the Online Safety Bill before it was passed recently and that the concerns of the opposition were ignored.

The opposition said they were expecting an early debate on the motion.

This week’s sessions began with Sri Lanka Podujana Peramuna’s S.C. Muthukumarana taking his oaths as an MP to fill in the vacancy created by the resignation of Uddika Premaratna from the Anuradhapura district.

The Speaker started the week’s proceedings, cautioning MPs over remarks they make about state officials in Parliament. He said that baseless statements and unfounded allegations were being made, and it was unfair by the officials as they were unable to reply.

He said that if officials were at fault, there was a procedure for summoning them before Parliament.

The issue of the salary increases of Central Bank staff figured prominently during the sessions.

Opposition Samagi Jana Balawegaya’s (SJB) Colombo District parliamentarian, S.M. Marikkar, raised a question about Central Bank salaries and allowances and sought an answer from Prime Minister Dinesh Gunawardena while President Ranil Wickremesinghe was present. The President was present to make a statement on the current economic status (please see box).

Premier Gunawardena wanted to table the relevant salary documents, but MP Marikkar, a former journalist himself, called for a detailed response. Giving credit to his former leader, he said it was President Wickremesinghe who introduced the tradition of the Prime Minister responding to questions, and at that time, detailed responses were given.  

Prime Minister Gunawardena made a few more attempts to table the documents, adding that the MP himself could read them. “Can’t you read from the document?” the Prime Minister asked. But Mr. Marikkar, not taking it as a response, insisted that the document be read out.

Eventually, the prime minister was forced to read out the document. Accordingly, details of the Central Bank staff salaries, including the existing salaries, the increases, the percentages, and the increased salaries, were read out.

According to these documents, an office assistant’s salary has been raised from Rs 145,000 to Rs 188,000, a 29.5 percent increase, while the salary of the Deputy Governor (Staff Grade) has been raised from Rs 976,662 to Rs 1,728,419, a 76.97 percent increase.

As Mr. Marikkar continued with more questions, President Wickremesinghe intervened and said they would await a report from the Public Finance Committee headed by Dr. Harsha de Silva to decide on the Central Bank salary issue.

Mr. Marikkar allowed SLPP MP Nalaka Godahewa, who is now supporting the SJB, to raise a question as to whether the independence given to the Central Bank should be reconsidered. A tongue-in-cheek response came from President Wickremesinghe. He said that by granting independence to the stock market, there was abuse, and Dr. Harsha would be able to shed light on that issue. Mr. Godahewa was once the chairman of the Securities Exchange Commission.

Opposition Chief Whip Lakshman Kiriella pointed out that the government cannot claim ignorance and say it was unaware of the situation, as when the bill was introduced to make the Central Bank independent, the government was aware of it.

Mr. Kiriella asked what the final decision was made after the Central Bank officials were summoned to Parliament and whether the salary increase would be granted or not.

Prime Minister Gunwardena said that depending on the report of the Public Finance Committee, the government would be taking a final decision.

State Minister Shehan Semasinghe also said they should await the report of Dr. Harsha de Silva.

Minister Susil Premajayantha said the wrong impression was being given that the salary increases were granted in terms of the recently passed Central Bank Act.

A heated debate erupted over the controversial salary increase of Central Bank staff members, with SLPP dissident Charitha Herath pointing out that an office assistant at the Central Bank draws a higher salary than the President’s Secretary and saying therefore amendments were needed to prevent arbitrary salary increases.

During the question-answer session, the issue of the shortages of teachers was raised, and Education Minister Susil Premajayantha explained again that it was due to pending court cases that the vacancies could not be filled. He added that the students were being held at ransom due to the delay in filling the vacancies for over a year.

He revealed that the allocation to provide meals for students had now been increased to Rs 16.3 billion, and accordingly, the per-meal cost was Rs. 110.

SJB’s Dr. Harsha de Silva pointed out that the imposition of VAT on local software developers was unfair and needed amendments to protect the local industry.

The opposition was also not happy about the appointment of Irrigation Minister Pavithra Wanniarachchi to head a select committee to probe the salinity barrier across the Nilwala River at Matara. The barrier was blamed for the recent flooding in the area. They objected because the committee was to probe allegations against the Irrigation Department, and therefore getting the Minister in charge of the subject was not correct. MPs Dullas Alahapperuma and Buddhika Pathirana urged that the post be given to an opposition member.

President says economy bouncing back; pledges more relief President Ranil Wickremesinghe has declared that the country’s economy, once contracted, is now gradually awakening, and the progress is enabling the government to deliver relief to the people, step by step. “By temporarily removing the Parate law, we’ve protected medium-scale industrialists. This week, we’ve managed to offer relief on electricity bills. Looking ahead, we aim to exempt items like books, school supplies, and health equipment from the VAT list and further reduce the VAT rate in the future,” President Wickremesinghe told Parliament in a statement on the current economic situation. The President in Parliament making a statement on the state of the economy The president also said: “After shrinking for six quarters until mid-2023, our economy is rebounding and is expected to grow by 2-3% this year. In 2023, we increased state revenue by over 50%, achieved a primary account surplus, and settled all overdue contractor payments from the last 3–4 years. In the first eight months of 2022, state-owned enterprises lost Rs. 720 billion. By 2023, we turned that into a Rs. 313 billion profit. Despite business closures due to the economic downturn, the recovery has sparked new ventures. Company registrations increased from 17,819 in 2022 to 22,376 in 2023, with 1,995 new companies registered in January 2024. Inflation fell from 70% in September 2022 to 5.9% by February 2024. Interest rates decreased from over 30% in 2022 to under 10% in 2023, relieving SMEs and consumers. Foreign exchange reserves also surged from less than US$ 20 million in April 2022 to over US$ 3 billion. We’ve removed import restrictions, except for private motor vehicles. Thanks to the primary surplus, the value of the US dollar against the rupee, which was 363 last year, has depreciated to 308 as of yesterday, strengthening the rupee. A nation that was once confined indoors, struggling to afford emergency fuel for transportation or lacking cooking gas, now travels freely. The once dire need for basic medication, such as paracetamol for a sick child at night, has almost completely reversed, showing the tangible benefits of our economic progress. Some doubt this economic progress, attributing it to paused loan payments, and argue that repaying debts will revive our difficulties, dismissing our gains as temporary. However, such scepticism is baseless. Discussions are ongoing about restructuring all loans, both domestic and international. With great reluctance, we imposed VAT, given that our economic challenges left us no other choice. Enduring this temporary pain was essential for the greater good. This move raised state revenue to nearly 11% of GDP, affirming our debt repayment ability. Consequently, the economic revival strengthened the rupee, reducing the cost of imported goods, including fuel. Companies paying VAT now enjoy the benefits of a stronger rupee, an advantage that spans all of Sri Lanka. Anticipate further benefits. By persisting on this successful trajectory, we will further stabilise our economy by the year’s end. Moreover, we have ceased using taxpayers’ money to offset the losses of government institutions. We’re restructuring government institutions to hand them over to investors. We’ve expanded the tax net, increasing the total number of tax files to over 1 million in 2023. This is a 130% increase. We’ve completely halted printing money and are advancing legal reforms to strengthen and modernise our legal framework, systems, and processes, enhancing public financial and economic management. We’ve published the Governance Diagnostic Report, a first for South Asia, taking steps to enhance governance and tackle corruption risks. Our measures have enabled facilities and concessions for many citizens. Through “Urumaya,” two million families will gain land ownership, reclaiming lost ancestral lands. We’ve also tripled social security spending. I plan to introduce the necessary ordinances and rules in Parliament to sustain this trajectory. My actions are not motivated by a desire for popularity. Unlike many political parties that craft fairy tales for appeal, creating fantasy palaces while ignoring ground realities and lying for power, I have not lied for power. My efforts are not for my future but for the country’s future, not aimed at gaining power but at rebuilding the nation. Despite the improvements in the economy, some feel its benefits aren’t widespread because of high taxes. We must realise that we’ve navigated the toughest times caused by past governments’ shortsighted policies and the opposition from various political parties to beneficial initiatives for the country. This opposition was often politically motivated. Despite these and other challenges, my dedication remains strong and unchallenged. When there was turmoil, governance faltered, and leadership was absent, I took charge to address the crisis. My aim was to first restore our country’s economy to prevent further instability. We partnered with the IMF to develop and implement a comprehensive economic plan, thereby restoring national stability. Economic indicators now reflect significant progress, a testament to our collective efforts.