Inching closer to economic reforms through austerity measures, and enacting long felt reforms in transparency and accountability, is part of Sri Lanka’s journey back to a functional nation which can move forward under its own steam. While multinational agencies like the International Monetary Fund (IMF) and diplomats of key partnering nations may recognise Sri Lanka’s perceived progress, going by balance sheets and exchange rates, one area of progress which most parties forget to inquire about is rebuilding eroded moral compass of governance, which continues to outrage the citizenry, and widen the trust gap between the state and the public, which they are supposed to serve.

Since 2022, thousands of Sri Lankans, disillusioned about their future in a downward spiralling Sri Lanka, migrated to whichever country that would have them, in search of greener pastures. Many Sri Lankan specialists, from the medical sector to Information Technology to apparels, uprooted their immediate families and moved overseas. Parents sold their assets to see their young children travel overseas for higher studies, hoping that they would make a life abroad. Many of those who left, did so with their trust in Sri Lankan governance eroded. They did not trust the Government to work in their best interest. The ‘aragalaya’ series of protest movements and civil disobedience campaigns began, due to public frustration, and perception that the State was not being fair to all. Morality, accountability, transparency and fairness are cornerstones of good governance. And during the economic crisis and the period of political upheaval in Sri Lanka’s recent past, a large segment of the public believed that the Government didn’t have or practised those values. Fast-forward today, with many state officials patting themselves on the back for the ‘turn around’, the question; has the trust deficit in the State and governance improved. Going by some actions the State has taken, it is likely that they have failed to inspire trust in the common man.   

Over the last few days many policymakers, senior government officials, and the Governor of the Central Bank of Sri Lanka (CBSL) have adamantly stood their ground about the colossal pay hike the board has given themselves. The Governing Board claims authority over remuneration for over 25 years, based on the 1950 CBSL Act and the new Act. However, this salary revision does not apply to the Governor or the Governing Board. The interpretation of Section 23(2) of the CBSL Act, which states that salaries cannot be based on profits, by the CBSL, cites it as a reason that they must pay staff regardless of profit. The CBSL, though some form of economic reasoning which is alien to the ordinary Joe, believes that their salaries do not come from taxpayer money but from profits, and also that profits are derived from open market operations, investments, and currency production. Opposition MP and former COPF Chair Dr. Harsha de Silva has stated that the CBSL Governor believes that funds outside the consolidated fund aren’t public finance. It seems by law, the CBSL can serve themselves with a ‘bigger spoon’ than what the State serves the public. While the move may be in accordance with the letter of the law, it is certainly in breach of any decency known to the public. The CBSL, and its staff, many of who rubber stamped the financial policy decisions which members of the previous government enacted, pushing Sri Lanka that was on the edge of a precipice, over to bankruptcy oblivion, today, have decided it fit to reward themselves, while a majority of Sri Lankans have had little or no relief worth mentioning. Taking to social media platform X, formally known as twitter, MP de Silva stated “…on public finance interpretation & the extent of #CBSL independence under the new act. Nonetheless, IMO (In my humble opinion) there’s no legal impediment to increasing salaries. But a huge moral & ethical issue given the current economic hardships”

Collectively, many Sri Lankan policy makers have little or no moral grounds to question the CBSL on why they have taken a page out of their playbook in rewarding oneself over the interest of the public, given the historical decision taken over the past 40 years to, make becoming a member of parliament a lucrative opportunity. Nevertheless, the CBSL’s move, and the manner it was done, without transparency, and the sheer insensitivity to their fellow Lankan brethren in a time of crisis, indicates that they have lost any moral high ground they had to dictate to the Sri Lankan public. Without the State being fair and moral, how can you expect the citizens to fall in line?