No need for pay hike; COL adjustments automatically built in

Treasury Secretary Dr. P.B. Jayasundera yesterday ruled out the need for an across-the-board pay hike as demanded by opposition parties and trade unions in the face of the rising cost of living.

“The public sector got a wage hike from January this year and existing wage arrangements and collective agreements have inbuilt automatic adjustments for cost of living (COL)increases. In four months’ time we will start work on the 2013 Budget and any considerations (for a wage hike) will have to wait,” he said.

The Treasury Chief also said that the country had achieved a decent inflation environment with a single digit rate of 6-7% whilst food prices had been fairly comfortable as well.