The Central Bank of Sri Lanka has officially ceased the payment of pension benefits to both past and present Governors, effective from September 11, 2024.
This decision, formalized through an Extraordinary Gazette issued on September 25, 2024, marks a significant shift in policy and applies to all future Governors as well.
Key Highlights:
- Policy Change Notification: The cessation of pension benefits was announced by Central Bank Governor Nandalal Weerasinghe, referencing a rule enacted by the Monetary Board in accordance with the Monetary Law Act.
- Discontinuation of Pension Claims: All claims for pension benefits by Governors will no longer be entertained by the Central Bank from September 11, 2024, onwards.
- Historical Context: Pension benefits for Central Bank Governors were initially halted in January 1998 and later reinstated in January 2015, providing a monthly pension of 74% of the basic salary, regardless of tenure.
- Impact on Future Appointees: The new regulation will affect all individuals appointed as Governors in the future, setting a precedent for the discontinuation of such benefits.
The recent move by the Central Bank of Sri Lanka to terminate pension benefits for its Governors has stirred discussions within the financial sector. With this decision, the Bank aims to streamline its policies and reduce long-term liabilities.
The Extraordinary Gazette issued by Governor Nandalal Weerasinghe outlines the immediate discontinuation of all pension claims effective from September 11, 2024, citing provisions under the Monetary Law Act.
The historical shift comes after previous policy changes in 1998 and 2015, which saw fluctuations in pension entitlements. As the Central Bank transitions into this new policy era, the decision is expected to impact not only current and past Governors but also future appointees, ensuring a more standardized approach to post-service benefits.
Central Bank of Sri Lanka (CBSL)
Last modified: October 4, 2024
