Central Bank pay hike: Senior citizens cry foul

It is amazing to read in the daily newspapers, the Central Bank employees are to be given salary increases of 70% or so.

In a recent interview the Governor of the Central Bank, Dr. Nandalal Weerasinghe stated that according to a 24-year-old Collective Agreement, the staff of the bank are entitled to a salary increase, but no mention of a stipulated percentage. He thinks a 70% increase would prevent bank staff from leaving to seek greener pastures. A reasonable increase should be given, of course. If the Government consents, could it be a ploy to begin a chain reaction to salary increases for parliamentarians, judges, Government employees etc.?

If such an all-round salary increase is adopted, the country will be engulfed in a financial tsunami and again money printing would be needed with new Rs.10,000 notes in addition to the depreciated Rs.5,000 notes, and many Sri Lankans may become worthless multimillionaires, and the poor laborer class will have to starve with a meager income earning a few valueless thousand rupee notes. A bankrupt Government again!!

Further to the proposed salary increase for Central Bank employees, we senior citizens feel the Minister of Finance and the Governor of the Central Bank are not bothered to know how we retired senior citizens invest our meager savings in Fixed Deposits to earn a monthly interest to survive. Fortunately, for a couple of years the NSB gave us 18% per annum which was quite reasonable. When it was time for renewal to our horror we were informed, that from January 1, 2024 the NSB, banks and finance companies have reduced interest rates to 8% per annum.

This is similar to a drastic pay cut reducing our lives to that of beggars. Some are fortunate to have their children support them in their homes as dependents, some providing financial help, while others are left uncared and left to suffer and die. To make matters worse, a 5% tax is also deducted from the interest we receive, and no receipt is issued. We consider this as an unnecessary deduction.

We appeal to the Minister of Finance and the Governor of the Central Bank to give us at least the 18% interest rate on all fixed deposits as a gratuity payment. -D.L.SIRIMANNE KOHUWELA