Nest Egg

June 28, 2006 (LBO) – A collective agreement covering the salaries and benefits of the state bank employees is due to be signed Thursday, Sri Lanka’s largest bank employees union said. After two-years training, the government has agreed to absorb the trainees into the permanent cadre, main union said. More than 20,000 state-bank employees would get increments between 2,800 rupees to 13,000 depending on their grades, Ceylon Bank Employees Union, Chief M R Shah said.

The lowest grade will receive 2,800 rupee increment and the superiors like CEOs or general managers are in line for a 13,000 rupee increment, Shah said.

The Bank of Ceylon, People’s Bank, National Saving Bank, and the State Mortgage and Investment Bank come under the collective agreement.

There are 20 grades in state banks and the collective agreement would be applicable from the 2006/2007 financial year.

The salary costs of state banks are expected to go up by 20 percent as result of the new agreement.

CBEU said the government approved banking trainees’ allowances to be raised to 12,000 rupees.