Sri Lanka’s Central Bank (CBSL) recently implemented a salary revision for the 2024-2026 period, sparking public debate. This decision, reached through a collective agreement between the bank’s Governing Board and employee representatives, drew criticism.
In response to the public outcry, a significant portion of CBSL’s senior management and professionals opted to revisit their own salary increases. Notably, this move by senior staff predated and remained independent of any recommendations made by the Committee on Public Finance (COPF). The COPF Chairman, however, has proposed a broader review of the salary agreement. This review, conducted by an independent committee, would encompass revisions for all CBSL employee categories.
It’s important to understand the context of the CBSL’s autonomy. As the nation’s central bank, it operates independently under the authority granted by the CBSL Act No. 16 of 2023 (previously under the Monetary Law Act No. 58 of 1949). This autonomy empowers the CBSL to ensure price stability within Sri Lanka and safeguard the country’s financial system. Fulfilling this crucial national mandate necessitates a highly qualified workforce. The recent salary revision aimed to retain the bank’s experienced professionals, ensuring it can function at its full capacity.