- Undertaking given to COPF
- All MPs opposed hike
The Central Bank of Sri Lanka (CSBL) announced yesterday that it would immediately review its recent 70 percent salary hike granted to all employees in view of the concerns expressed by a cross section of society and the public discourse it has created.
In a news release issued yesterday, the CBSL stated that the recent salary revision for 2024-2026 effected following a collective agreement between the Governing Board and the employee representatives, created much discourse among the public.
The release stated that in response to this situation, a majority of the senior management and professionals of CBSL made a collective decision to consider a revision to their salaries. This decision was communicated to the Committee on Public Finance (COPF) on March 16, prior to and independent of the recommendations made by COPF.
COPF Chairman MP Dr. Harsha de Silva has recommended that the collective agreement to increase salaries of CBSL staff be reviewed by an independent committee, entailing revisions across all employee categories of CBSL. De Silva said that COPF has also recommended that until such time, to postpone the salary hike of the CBSL. COPF has also strongly recommended that the system of determining wages for professional staff should be separate from that of non-professional and other staff.
The matter was brought before COPF after it was raised in Parliament proceedings, with several Ministers and Government and Opposition MPs questioning the revision of remuneration of CBSL employees that was approved by the Bank’s Governing Board. Following the queries in Parliament, the CBSL Executive Officers’ Union later issued a clarification, stating that the salary increment was provided under the Triennial Collective Agreement entered into with the Trade Unions covering 2024- 2026.
The CBSL, as the apex financial institution in the country, functions autonomously using the powers vested to it, previously under the Monetary Law Act, No. 58 of 1949 and now under the CBSL Act No. 16 of 2023.
The CBSL news release stated it is held accountable in achieving and maintaining domestic price stability and securing the stability of the country’s financial system. “To achieve this critical National mandate, the CBSL employs many experienced and professional staff under its wing and the recent salary revision was made with the intention to retain its experienced staff to function at its full capacity.” Although the CBSL did not explicitly mention it, many professionals in other fields have migrated to other countries over tax and salary issues.
The average 70 percent salary hike for CBSL staffers caused widespread consternation in society at a time when the public is facing immense pressures from the rising Cost of Living and increased taxes. It has also come under fire from other professionals who do not receive such high salaries. Under the proposed new salary structure, an office clerk would receive a monthly pay of around Rs.220, 000 while a Deputy Governor would receive around Rs.1.7 million. CBSL employees are also entitled to housing loans, vehicle loans, welfare loans and medical facilities.
