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Tuesday April 23rd, 2024

Sri Lanka’s central bank offers explain salary hike to parliament

ECONOMYNEXT – Sri Lanka’s central bank, which has gained independence through monetary law has offered to explain a recent steep salary hikes to its staff, to the parliament.

According to reports, which have not yet been denied, office assistants have been given a salary hike of 47,000 rupees to 199,000 rupees on average, management assistance a 94,000 average to 306,000, a staff officer 184,000 to 514,000.

Heads of Departments were given 430,000 hike to 1,030,000 rupees, Assistant Governors by 522,000 to 1,238 million and Deputy Governors by 712,000 to 1.68 million.

The central bank said in a statement the increases were given according to a three-year collective agreement.

The central bank’s Governor has made a request to the Finance Minister to explain its position following a decision by its governing board.

“CBSL will explain its position upon being offered the requested opportunity or on receipt of a request for information,” the central bank said in a statement.

Sri Lanka has exchange controls, trade controls and high inflation due to anchor conflicts in a deeply flawed operational framework of the agency and some classical economists and critics have called for legal restraints on its liquidity operations to prevent monetary instability.

Instead of imposing constitutional restraint on its actions legislators gave the agency ‘independence’ to print money for growth (target potential output), despite it being a reserve collecting central bank, critics have said.

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  1. sacre blieu says:

    The Central Bank, is the pulsating heart of an economy. However, they should have thought things over and obtained a modest rise, considering the parlous state of the economy and the hapless public of whom there are very many. As much as the personal are concerned, the best is chosen and are considered specialised in the ultimate field of the economy and are absolutely important. Surely, once the economy is on a sound footing, there worth could be measured and justified accommodation. Regretfully the bastion of a vibrant economy was invaded for political reasons, and even outsiders were appointed as governors. Shame.

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  1. sacre blieu says:

    The Central Bank, is the pulsating heart of an economy. However, they should have thought things over and obtained a modest rise, considering the parlous state of the economy and the hapless public of whom there are very many. As much as the personal are concerned, the best is chosen and are considered specialised in the ultimate field of the economy and are absolutely important. Surely, once the economy is on a sound footing, there worth could be measured and justified accommodation. Regretfully the bastion of a vibrant economy was invaded for political reasons, and even outsiders were appointed as governors. Shame.

Iran President to open Sri Lanka $514mn irrigation, hydro power project

MULTIPURPOSE: Uma Oya multipurpose development project is the largest since the end of the Mahaweli projects.

ECONOMYNEXT – Iran President Seyyed Ebrahim Raisi will inaugurate an irrigation and hydropower project that was designed and built by Iranian engineering firm and was also initially financed before international sanctions hit the project.

The Uma Oya (River) project will irrigate 4,500 acres of new agricultural land, generate 290 Gigawatt hours of electricity and also provide drinking water, a government statement said.

Sri Lanka had awarded an engineering, procurement, construction (EPC) to Iran’s FARAB engineering group to design and construct the 514 million dollar multipurpose project in 2010.

The project was funded until 2013 with a million US dollar credit from the Export Development Bank of Iran but international sanctions prevented the country from continuing financing, a government statement said.

The project continued with funding from Sri Lanka. Sri Lanka had since repaid 19.3 million dollars of the credit and 35.2 million remains outstanding.

The Uma Oya project has a 120MW of hydro power generators, which can generate 290 Giga Watt hours of energy.

Each year 145 million cubic metres of water will be taken from Uma Oya to the Kirindi Oya river valley after generating electricity in an underground power station.

It will irrigate 1,500 hectares of existing agricultural and 4,500 hectares of new land in the Moneragala district, where crops can be cultivated in both the Maha and Yala seasons.

About 39 million cubic meters of water will be used for drinking and industrial purposes.

Two reservoirs built at Dyraaba and Puhulpola in Uma Oya basin is connected by a 3.98 kilometre conveyance tunnel and water is taken through a 15.2 kilomtre headrace tunnel to an underground power station. A tailrace tunnel takes water from the power station to the Kirindi Oya basin.

The project was originally expected to be completed in 2015, but due to financing delays and later water leaking into the headrace tunnel and the Covid pandemic had delayed it. The project completion date was extended to March 31, 2024 and defect liability date to March 31, 2025.

(Colombo/April23/2024 – CORRECTED Iran President Seyyed Ebrahim Raisi will inaugurate an irrigation and hydropower project that was designed and built by Iranian engineering firm.)

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Sri Lanka state oligopoly allowed to import some black gram

ECONOMYNEXT – Sri Lanka has allowed the import of some black gram, by three state agencies, according to a gazette notice issued under the hand of President Ranil Wickremesinghe.

Import licenses will be given for 2,000 metric tonnes of the seed classified under HS Code 7312.31.22 and 29.

Sri Lanka State Trading Corporation, National Food Promotion Board and Sri Lanka Hadabima Authority is to be given import licenses.

Traders have resorted to smuggling some types of black gram (ulundu) mis classified as chick peas, to get over high taxes and import restrictions.

Tamil legislators have also protested the import controls, which they go into several key ethnic foods they consume. (Colombo/Apr23/2024)

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Sri Lanka Foreign Ministry consular division shifted to Battaramulla

ECONOMYNEXT – Sri Lanka’s Foreign Ministry said it consular division would be shifted to the Suhurupaya building in Subuthipura, Battaramulla from May 02, 2024.

Document authentication services provided by the Consular Affairs Division in Colombo will be suspended on 29 and 30 April 2024 held transfer the Electronic Document Authentication System (e-DAS) to the new premises at Suhurupaya.

Urgent applications for authentication to the Consular Division in Colombo, or any Regional Consular Offices by 4.15 pm on 26 April 2024, the Foreign Ministry said.

Regional Consular Offices in Jaffna, Trincomalee, Kurunegala, Kandy and Matara will remain open to accept applications.

Authenticated documents will be delivered to the applicants only on Thursday, 02 May 2024.

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