Around 800,000 Sri Lankans are currently employed in the public service out of the total working population of 7.5 million people.
Jayasundara, who made this request during a recent meeting with bankers, said the state banks should make an effort to issue plastic cards with suitable credit limits.
State-run Bank of Ceylon, the island's largest commercial bank's chief executive S N P Palihena said they are working on launching few products aimed at public servants.
"There will be no excessive credit limits, or any special treatment. We are looking at introducing housing loans, credit cards and other products for state employees this year," Palihena said Thursday.
According to Central Bank figures, there were 637,326 active credit cards in the island, which carried an outstanding balance of Rs15 billion as at end December 2005.
However, moves by the government to slap a stamp duty of Rs10 for every Rs1,000 spent on purchases made by credit cards, may make borrowers think twice before using the plastic.
The stamp duty, which kicks in on April 1st, is part of a government drive to raise money to pay for subsidies, infrastructure projects and the ever rising salaries of an already bloated public service.
Sri Lanka abolished stamp duties in May 2002, as it was considered a 'nuisance tax' which hindered the development of financial markets but did not bring enough revenue.
Stamp duties were re-introduced in the 2006 budget and given legal effect when parliament approved it on March 21.
The financial sector has been the target of successive budgets in recent years, with a debit tax already taking a bite of all cheque transactions.
Sri Lanka's tax revenues hit Rs334.9 billion in the first eleven months of last year, nearing 16 percent of Gross Domestic Product (GDP).
Treasury Secretary P B Jayasundara told businessmen last week that the government is aiming to raise the tax to GDP ratio to 19-20 percent in four years.
-Mel Gunasekera: mel@vanguardlk.com
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