Wednesday Nov 06, 2024
FT
Wednesday Nov 06, 2024
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Cabinet Co-Spokesman and Minister Bandula Gunawardena opted not to comment regarding the recent salary hike for the Central Bank employee, who is also part of the public sector employment.
Responding to a question raised at the post-Cabinet meeting media briefing yesterday he underscored the Central Bank’s autonomy at present. “The Central Bank is now operating under the provisions of its new legislation and functions as an independent entity. Therefore, I am unable to comment on the Central Bank’s decision to increase salaries for its employees,” Gunawardena added.
In a controversial move amidst the ongoing economic crisis, the Monetary Board of the Central Bank of Sri Lanka (CBSL) has announced significant salary increases for its employees, ranging from 27% to 70%.
Despite recommendations from the Ministry of Finance against such raises, the CBSL proceeded with the decision.
CBSL employees already receive substantially higher salaries and allowances compared to their counterparts in other Government positions.
For instance, an Office Assistant (KKS) at the CBSL earns a basic salary higher than that of an entry-level doctor. This discrepancy extends to other key revenue-generating positions within the Government, such as Customs officers, Inland Revenue Department Assessors and Excise Inspectors.
These revenue-generating positions often require degree holders to undergo competitive exams and work for years to reach salaries comparable to entry-level positions at the CBSL. For example, it could take decades for Customs and Excise department employees to achieve a salary level equivalent to the CBSL’s entry-level OA1 position.
The entry-level position at the CBSL, the SO 1 Staff Class Grade 1, commands a salary four to six times higher than parallel positions in key revenue-generating Government departments, with a basic salary of Rs. 296,280 and a gross salary of Rs. 514,417.
While CBSL argues that these salaries align with industry standards, critics contend that such discrepancies contribute to talent drain and corruption within the country.
The disparity in salaries, despite individuals belonging to the same social class with similar educational qualifications and Government employment, raises concerns about fairness and equity in the public sector.
“I was not present during the Parliamentary debate when the new Central Bank Act was discussed. It would be more appropriate to direct questions regarding the Central Bank to its Governor,” Gunawardena said. (CdeS)
