The Central Bank of Sri Lanka has engaged the services of a Washington based PR agency for a consideration of Rs. 100 million (approx. US$ 800,000) in order to deepen defence, investment, trade and cultural links with the US ahead of the UNHRC sessions in 2013.
The Central Bank would pay Rs. 100 million for a year’s service provided by the Thompson Advisory Group LLC, USA (TAG). The contract was signed by Central Bank Deputy Governor BDWA Silva and Robert J. Thompson, Chairman TAG on March 16, 2013 as the US government sponsored a second resolution against Sri Lanka at the UNHRC sessions in Geneva.
The deal was brokered by Thilak Siriwardena who will provide strategic consultancy services to the Central Bank for a consideration of US$ 7,000 a month for one year, opposition MPs disclosed yesterday.
During the year leading up to the UNHRC session in 2014, the TAG has undertaken to:
= Prepare and provide educational facts, figures and analyses relating to Sri Lanka to be submitted to the US government (congress and executive branches), think tanks, academia and media.
= Plan and execute immediately an ongoing engagement with US Congress, US Governmental Departments and United Nations.
= Engage with influential media.
= Brief US based investors on current US investment and additional investment and trade opportunities in Sri Lanka.
= Prepare suitable worded educational and promotional articles for US audiences, which would be factual representations based on the past 30 years and the remarkable post-conflict progress in Sri Lanka.
= Arrange a comprehensive programme in April 2013 for a Central Bank visit to Washington D.C.
= Arrange awareness and educational visits to Sri Lanka for senior US Government and private sector officials .
= Reach out to opinion leaders in think tanks and academia in the USA and engage with broader Sri Lankan Diaspora, by organising interactions and meetings as appropriate.
Providing details to the US Department of Justice under Foreign Agents Registration Act of 1938, TAG has made the following interesting disclosures about the Central Bank, raising a few eyebrows:
=The Central Bank is a semi-autonomous arm of the Sri Lankan government
= The Central Bank is not supervised, owned, directed, controlled, financed or subsidised by the Sri Lankan government, any political party nor any other principle.
Opposition MP Dr. Harsha De Silva, who disclosed the above information to the media yesterday (11) questioned the validity of disclosed by TAG to its government.
“The Monetary Board is appointed by the President according to the 18th Amendment. The now repealed 17th Amendment gave powers to the Constitutional Council to appoint the Monetary Board upon recommendations made by the Ministry of Finance and Planning, under whose jurisdiction the Central Bank falls. But now the appointments are made by the President. So is it right to say the Central Bank is not supervised, controlled or directed by the government?” the UNP Economic Spokesman said.
“And, since when did the Central Bank engage in talks relating to national security?” he asked.
Holding up a one thousand rupee note, he charged: “This is proof that the government controls the Central Bank, otherwise this (thousand rupee note) election poster would not have been printed on the eve of elections in 2010.”
The Central Bank’s mandate is to maintain price stability and financial system stability in the economy.
The President in November 2011 depreciated the rupee without the Central Bank’s concurrence, denting its credibility because it maintained the rupee would strengthen. The Central Bank has also from time to time eroded price stability by printing money for the government, economists have often pointed out as an example of conflict of interest within the Central Bank. courtesy: The Island