Opinion
CBSL salary increase: Charting a path forward for Sri Lanka
By Lalin I De Silva
The recent decision by the Central Bank of Sri Lanka to increase the salaries of bank employees has ignited a storm of controversy, drawing sharp criticism from both the public and the Parliament. The move, which granted the Central Bank self-regulation rights unprecedented in other state sector organizations, has raised concerns about accountability and transparency within the country’s financial institutions.
At the heart of the matter lies the absence of a National Pay Policy, a critical deficiency in Sri Lanka’s state policies. Unlike countries such as the United States, which have established platforms like www.O’net.org to address similar issues, Sri Lanka lacks a comprehensive framework to ensure fair and equitable compensation across its public sector.
The dearth of Human Resources Management (HRM) concepts in state administration exacerbates the problem. While the Treasury’s management division has outlined recruitment guidelines, these remain vague and non-binding, contributing to growing frustrations and hindering the country’s development. With approximately 8 million employees under its purview, Sri Lanka’s management of human resources lags far behind international standards.
Wages, salaries, and rewards collectively constitute the total compensation package that an employee receives for their work. Each component serves a distinct purpose and is typically defined as follows:
Wages: Wages typically refer to the hourly rate or payment based on the number of hours worked by an employee. It is commonly associated with jobs that are paid on an hourly basis, especially in industries such as retail, hospitality, or manufacturing. Wages are often subject to minimum wage laws set by governments and may vary based on factors such as overtime, shift differentials, and bonuses tied to performance. Hourly rates are yet to be regularized in the Sri Lankan context.
Salaries: Salaries are fixed payments made to employees on a regular basis, typically on a monthly or annual schedule, regardless of the number of hours worked. This form of compensation is commonly associated with professional or managerial positions and is often negotiated as part of an overall employment contract. Salaries are usually based on factors such as job responsibilities, experience, education, and market demand for specific skills.
Rewards: Rewards encompass various forms of additional compensation beyond base wages or salaries, designed to recognise and incentivize employee performance, loyalty, or contribution to organisational goals. This can include bonuses, commissions, profit-sharing, stock options, employee benefits (such as healthcare, retirement plans, and paid time off), recognition programs, and other non-monetary incentives like career development opportunities or flexible work arrangements. Most employees in the state sector are still to gain from total rewards concept. The state sector employees are purposely kept away from ‘high performance-oriented reward structure” and blame them often for ‘inefficiency’. Is it fair?
“It is a widely recognised fact that salaried employees typically utilize only 30% of their total capacity for performance, leaving a significant 70% untapped potential, which must be unlocked through effective employee motivation strategies. This approach mirrors the practices adopted by developed countries.”
The total compensation package combines these elements to provide a comprehensive and competitive remuneration structure that attracts and retains talent, motivates employees to perform at their best, and aligns with the organisation’s strategic objectives. It is important for employers to carefully design and communicate their compensation packages to ensure fairness, transparency, and compliance with legal and regulatory requirements, while also fostering a positive workplace culture and employee engagement.
Calls for immediate action to rectify this situation have grown louder, with demands for the establishment of a dedicated National HRM Ministry gaining traction. Critics argue that Sri Lanka’s outdated education system is partly to blame, highlighting the need to incorporate modern HRM practices into the national curriculum.
Key components necessary for the establishment of fair salaries include a national job list encompassing all sectors and districts, as well as the development of a national skill inventory. These initiatives could be seamlessly integrated with the education system, ensuring that certifications are awarded based on competency-based assessments.
Before solely blaming the Governor of the Central Bank, Sri Lanka must prioritise the creation of a dedicated ministry for HRM. Such a measure would pave the way for the formulation of a comprehensive National Pay Policy, crucial for the country’s economic stability, particularly in light of its increasing reliance on foreign employment income.
“In conclusion, the outcry sparked by the unilateral salary increase underscores the critical need for holistic reforms within Sri Lanka’s public sector. Establishing a dedicated Ministry of Human Resources Management and implementing a National Pay Policy are imperative steps towards addressing longstanding issues of fairness and transparency in workforce management. As the renowned quote suggests, ‘The right people drive business,’ emphasising the importance of studying and understanding the pivotal role of human resources in organisational success.”
(The writer is former senior planter, agricultural adviser/consultant, Secretary General, Ceylon Planters’ Society, Editor, CPS Bulletin & freelance journalist.)
Opinion
Can a punishment-free child become a threat to Sri Lankan society?
Children are the future of every nation, and the values they learn during childhood shape the society they will eventually lead. In Sri Lanka, where family traditions, respect for elders, and social responsibility have long been important cultural values, the way children are raised remains a topic of great interest. In recent years, many parents and educators have moved away from traditional forms of punishment and embraced more child-friendly approaches to discipline. While protecting children from physical and emotional harm is essential, an important question arises: can a child who grows up without any form of punishment or consequences become a threat to Sri Lankan society?
To answer this question, it is necessary to understand the difference between punishment and discipline. Punishment is often associated with penalties imposed for wrongdoing, while discipline refers to teaching children self-control, responsibility, and respect for rules. Modern child psychology generally discourages harsh physical punishment because it can cause fear, anxiety, and resentment. However, completely removing consequences for inappropriate behavior may create a different set of problems.
Sri Lankan society has traditionally emphasized discipline within the family. Parents, grandparents, and teachers have often played active roles in guiding children’s behavior. Respect for elders, obedience, and good manners have been considered important virtues. While some traditional disciplinary methods may no longer be acceptable, the underlying principle of teaching accountability remains relevant.
A child who never faces consequences for wrongdoing may struggle to understand the boundaries that exist in society. For example, if a child is allowed to insult others, damage property, or ignore rules without correction, they may develop the belief that their actions have no consequences. Such attitudes can become problematic when the child enters school, the workplace, or the wider community.
Sri Lankan schools already face challenges related to student discipline. Teachers often report difficulties in managing classrooms where some students refuse to follow instructions or respect school regulations. When children are not taught accountability at home, educational institutions may find it harder to maintain a productive learning environment. This can affect not only the individual student but also classmates whose education is disrupted.
Another concern is the development of entitlement. A child who is never told “no” may come to believe that personal desires should always be fulfilled. In a society where cooperation and mutual respect are essential, such attitudes can lead to conflicts with peers, teachers, employers, and even family members. Sri Lanka’s social fabric depends heavily on community relationships, and individuals who fail to respect others can weaken these bonds.
The influence of social media and modern technology has added another dimension to this issue. Today’s children have access to information and entertainment on an unprecedented scale. Without proper guidance and consequences, some may misuse technology, engage in cyberbullying, spread misinformation, or develop unhealthy habits. Parents who avoid setting limits may unintentionally expose children to risks that affect both personal development and social well-being.
The workplace offers another example of why accountability is important. Sri Lanka’s economic development depends on a workforce that is disciplined, responsible, and capable of working with others. Employers value punctuality, respect, and professionalism. Individuals who grow up without learning responsibility may find it difficult to meet these expectations, affecting both their personal success and the productivity of organizations.
However, it is equally important not to interpret this argument as support for harsh punishment. Research has shown that excessive physical or emotional punishment can have serious negative effects on children. Fear-based parenting may produce obedience in the short term but can damage confidence, trust, and mental health in the long term. Therefore, the solution is not stricter punishment but more effective discipline.
Positive discipline provides a balanced alternative. It involves setting clear rules, explaining expectations, and applying fair consequences when those rules are broken. For instance, if a child neglects schoolwork, they may lose certain privileges until responsibilities are fulfilled. If they damage property, they can be required to help repair or replace it. Such consequences teach accountability while preserving the child’s dignity.
Sri Lankan parents, teachers, and community leaders all have a role to play in nurturing responsible citizens. Families should create environments where children feel loved and supported but also understand that actions have consequences. Schools should encourage character development alongside academic achievement. Religious and community organizations can reinforce values such as honesty, compassion, and respect for others.
A balanced approach is especially important in a rapidly changing society. As Sri Lanka continues to modernize and integrate with the global community, young people must learn not only their rights but also their responsibilities. Freedom without responsibility can lead to selfishness, while discipline without compassion can lead to fear. The challenge is to find the middle ground.
A punishment-free child can become a concern for Sri Lankan society if the absence of punishment also means the absence of discipline and accountability. Children who never learn consequences may struggle to respect rules, authority, and the rights of others. However, harsh punishment is not the answer. The most effective approach combines love, guidance, clear boundaries, and fair consequences. By raising children who understand both freedom and responsibility, Sri Lanka can build a future generation that strengthens society rather than threatens it.
Saumya Aloysius
(An essayist, children’s writer and freelance writer who holds a Master’s Degree in Sociology from the University of Kelaniya)
Opinion
SriLankan Airbus struck by lightning
On Friday 12 June, 2026, a SriLankan Airlines Airbus 330 was en route from Colombo to Sydney, Australia was about 45 minutes into its flight when a loud bang was heard, accompanied by a blinding flash. In what was assumed to be a lightning strike, the airplane’s left (No. 1) engine was damaged, forcing the aircraft to return to BIA-Katunayake, where it landed safely.
Lightning travels from cloud to cloud or cloud to ground. Because the aircraft is not electrically ‘grounded’, or ‘earthed’, it must have been in the path of the thunder bolt purely by chance. There is also a phenomenon whereby the aircraft may travel through an electrically charged atmosphere (for example a cloud) where an electrical charge could build up and strike, or be emitted, as lightning. In such an instance, pilots hear electrical static in their headsets before the strike. Usually, when lightning strikes an aircraft in flight, the electrical charges remain on the outside, as on a ‘Faraday’s Cage’ apparatus, and the passengers and crew are perfectly safe.
To help the efficient and safe discharge of static electricity from the airplane’s structure, static wicks, or static dischargers, are fitted at the trailing (rearmost) edges of the wings and tail surfaces. When an airplane has landed after a lightning strike, ground engineers count the number of wicks that may have been burnt out to ensure that a minimum (recommended) number is available for a subsequent flight. Sometimes, there is minor damage, like pitting of the paintwork at the points where the charges left the aircraft.
The last instance in the USA of an airplane believed to have been lost due to a lightning strike was on December 8, 1963, when a Pan Am Boeing 707-121, en route from Baltimore, Maryland to Philadelphia, Pennsylvania, suffered a fuel tank explosion, later determined to have been the result of a lightning strike. Since then, aircraft have been rendered immune from lightning damage thanks to extensive research conducted by manufacturers using high-voltage currents.
Interestingly, modern airliners have electronic instrument displays which don’t even flicker when the aircraft is struck by lightning. By a process of connecting all the metallic parts, known as ‘bonding’, the entire fuselage effectively becomes a protective cocoon, so electrical charges caused by lightning will always reside on the outside of the aircraft.
What is unusual in the recent SriLankan Airlines incident is the extent of damage to the left engine. Did it encounter hail or ingest something?
Only a thorough, independent inquiry by aviation safety investigators will reveal the cause.
GUWAN SEEYA
Opinion
Beyond diagnosis: A strategic design for 7% growth by 2029 (Part I)
“Vision without execution is hallucination.” – Thomas Edison
Introduction: Stabilisation Is Not Transformation
Sri Lanka has come a long way since the economic collapse of 2022. Inflation has been brought under control. Foreign reserves have improved. Debt restructuring has advanced. Government revenue has increased significantly through taxation reforms. The exchange rate has stabilised, and confidence has gradually returned to financial markets.
These achievements deserve recognition.
However, stabilisation should not be confused with economic transformation. A patient discharged from intensive care is not necessarily healthy. Likewise, an economy that has escaped collapse has not necessarily achieved sustainable prosperity.
The central economic question facing Sri Lanka today is no longer how to avoid another crisis. Rather, it is how to achieve sustained economic growth of at least 7% per annum by 2029.
Unfortunately, much of the current policy debate remains trapped in economic diagnosis. Policymakers, economists, and commentators repeatedly identify familiar problems: (i) low productivity, (ii) weak exports, i(iii) Inadequate innovation, (iv) poor competitiveness, and (v) insufficient investment. While these diagnoses are correct, they are not new.
Sri Lanka now needs economic engineering.
The country requires a clear, measurable, and actionable National Growth Strategy for 2026-2029 that identifies (i) where growth will come from,(ii) what investments are required,(iii) which institutions will lead implementation, and (iv) how success will be measured.
The difference between diagnosis and engineering is the difference between describing a problem and solving it.
The Missing National Growth Target
One of the most striking weaknesses in Sri Lanka’s economic discourse is the absence of a publicly articulated growth target supported by a detailed implementation framework.
Successful economies establish measurable objectives.
Sri Lanka should adopt the following growth trajectory:
2026 – 4%
2027 – 5%
2028 – 6%
2029 – 7%
Such targets would provide direction to investors, public institutions, universities, exporters, and development partners. Without a destination, even the best policies risk becoming disconnected initiatives.
Today, many policy interventions appear fragmented—valuable in isolation but lacking integration into a broader national growth framework.
Growth Will Not Come From Consumption
For decades Sri Lanka relied heavily on consumption, imports, remittances, tourism, and external borrowing.
That model has reached its limits.
No country has achieved sustained prosperity through consumption-led growth alone.
The countries that transformed themselves—Singapore, South Korea, Ireland, Vietnam, and China—generated growth through productive investment, exports, industrialisation, and integration into global markets.
Sri Lanka’s future growth must therefore be driven by investment and exports rather than domestic consumption.
The challenge is not increasing spending but increasing productive capacity.
Export-Led Growth: The First Pillar of Transformation
Every successful Asian growth story has one characteristic in common: exports.
Exports generate foreign exchange, create jobs, attract investment, encourage innovation, and improve productivity.
Sri Lanka should establish an ambitious target of doubling export earnings within the next decade.
This requires moving beyond traditional exports and expanding into:
High-value agriculture
Food processing
Information technology services
Logistics services
Advanced manufacturing
Professional services
Export growth must become a national mission comparable to post-war reconstruction efforts seen elsewhere in Asia.
Without a major expansion of exports, sustained 7% growth will remain elusive.
Manufacturing: The Forgotten Growth Engine
Manufacturing remains the single most important source of rapid economic transformation worldwide. Vietnam provides perhaps the best recent example.
Through (i) industrial zones, (ii) trade agreements, (iii) infrastructure development, and (iv) targeted investment attraction, Vietnam became deeply integrated into Asian production networks.
Sri Lanka possesses strategic advantages:
A prime Indian Ocean location
Strong port infrastructure
Educated labour force
Proximity to India
The country should establish specialised manufacturing clusters focusing on:
Electronics assembly
Medical devices
Processed food products
Boat building
Rubber-based products
Engineering components
Rather than attempting to compete with every country, Sri Lanka should specialise in selected niches where competitive advantages can be developed.
RCEP: The Strategic Door to Asia
Sri Lanka’s future lies increasingly in Asia.
The Regional Comprehensive Economic Partnership (RCEP) represents the largest trading bloc in the world and includes many of the fastest-growing economies.
Membership or closer integration with RCEP supply chains could provide Sri Lankan exporters with access to markets, investment, technology, and production networks that are currently beyond reach.
Unfortunately, discussion on RCEP remains limited compared with its strategic significance.
A dedicated national roadmap for RCEP engagement should become a top economic priority.
The question is not whether Sri Lanka can afford to integrate more deeply into Asia.
The question is whether Sri Lanka can afford not to.
Knowledge Economy: Turning Universities Into Growth Institutions
Sri Lanka’s universities produce thousands of graduates annually, yet their contribution to commercial innovation remains limited.
Globally, universities have become engines of economic development.
Research institutions should not merely produce graduates; they should produce patents, technologies, startups, and commercial solutions.
A national innovation framework should:
Link universities with industry
Encourage commercialisation of research
Support technology transfer
Expand startup financing
Reward innovation and entrepreneurship
Knowledge must become an economic asset rather than an academic exercise.
Dairy, Agriculture, And Import Substitution
Export growth alone is insufficient.
Sri Lanka must also reduce unnecessary import dependence.
The dairy sector offers a compelling example.
For decades, billions of rupees have left the country through dairy imports despite favourable climatic conditions and substantial agricultural potential.
A comprehensive dairy development strategy should focus on:
Improved genetics
Feed production
Commercial farming
Processing investment
Farmer productivity
The objective should be import substitution combined with rural income growth.
The same principle can be applied selectively to other sectors where domestic production is economically viable.
Creating A National Investment Targeting Agency
Sri Lanka does not need another bureaucracy.
It needs a professional institution dedicated exclusively to investment targeting.
Instead of passively waiting for investors, this agency would actively identify and attract strategic investments aligned with national priorities.
Its mandate would include:
Identifying priority sectors
Marketing opportunities globally
Coordinating approvals
Monitoring outcomes
Facilitating technology transfer
Singapore’s Economic Development Board and Ireland’s Industrial Development Agency demonstrate how targeted investment institutions can transform national economies.
Sri Lanka requires a similar mechanism adapted to local realities.
From Economic Diagnosis To Economic Engineering
The next stage of Sri Lanka’s recovery requires a fundamental shift in thinking.
The policy debate must move beyond identifying problems. The country already knows its problems.The challenge is implementation.Every policy proposal should be evaluated against a simple question:
Will this contribute to achieving 7% growth by 2029?
If the answer is no, resources should be redirected.
Economic engineering requires focus, prioritisation, accountability, and measurable outcomes. The era of fragmented initiatives must give way to a coherent national growth strategy.
Summary
Sri Lanka has achieved significant macroeconomic stabilisation, but stabilisation is only the first step toward sustainable prosperity.
To move from recovery to transformation, Sri Lanka should adopt a National Growth Strategy for 2026-2029 built around five pillars:
Export-led growth
Investment-led growth
Manufacturing expansion
Knowledge-economy development
Regional integration through RCEP and Asian supply chains
Supporting sectors such as dairy, tourism, logistics, and information technology should be strategically developed within this framework.
Most importantly, investment must be targeted rather than scattered, supported by specialised institutions and measurable performance indicators.
Conclusion
History demonstrates that no nation has become prosperous by accident. Economic success is rarely the product of isolated policies or short-term political initiatives. It is the outcome of a deliberate strategy pursued consistently over many years.
Sri Lanka stands at a crossroads.
One path leads to modest growth, periodic crises, recurring debt challenges, and continued vulnerability. The other leads to transformation through investment, exports, innovation, manufacturing, and regional integration.
The choice is ultimately strategic.
The time has come for Sri Lanka to move from economic diagnosis to economic engineering.
The future will not be determined by how successfully the country stabilised after the crisis. It will be determined by how effectively it builds the foundations for sustained growth thereafter. If Sri Lanka can articulate and execute a coherent investment-led growth strategy today, achieving 7% growth by 2029 need not be an aspiration.
It can become a national objective—and a national achievement, economic Engineering
The writer, among many, served as the Special Advisor to the Office of the President of Namibia from 2006 to 2012 and was a Senior Consultant with the UNDP for 20 years. He was a Senior Economist with the Central Bank of Sri Lanka (1972-1993). He can be reached via asoka.seneviratne@gmail.com
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