Controversy over Central Bank Salary Hikes: Governor Says Current Uproar Threatens Central Bank Independence

 

 

Central Bank Governor Dr. Nandalal Weerasinghe raised concerns over the uproar surrounding the institution's salary increases, labeling it as a deliberate attempt to erode its autonomy.

Dr. Weerasinghe emphasized the importance of maintaining the Central Bank's independence in setting wages and salaries to prevent undue influence from fiscal authorities, highlighting past crises as cautionary examples.

He warned against using the salary issue to compromise the bank's independence, citing the potential detrimental effects on the economy. The governor reiterated the transparency of the Central Bank's actions and stressed the necessity of accountability in such matters.

This comes amidst criticism from Parliament over the salary hike, with concerns raised regarding its legality and financial implications