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Sri Lanka to extend golden handshake to troops
Colombo, Nov 21: Sri Lanka will extend its salary-for-life golden-handshake to troops and police depending on the success of efforts to end decades of ethnic bloodshed, finance minister K N Choksy said today.
Colombo, Nov 21: Sri Lanka will extend its salary-for-life golden-handshake to troops and police depending on the success of efforts to end decades of ethnic bloodshed, finance minister K N Choksy said today.
The Voluntary Retirement Scheme (VRS) aimed at shedding 300,000 jobs in the public sector will be offered to the security forces and the police based on the outcome of
the peace moves, Choksy said.
"Depending on the peace process we will extend the scheme to security forces and the police too," Choksy told reporters here. He said the VRS was expected to trim the 1.09 million-strong public sector by about 30 percent in three years.
Public servants taking advantage of the VRS will continue to receive their monthly salary until they reach the normal retirement age of 55. They will also get an upfront payment of a year's salary immediately on quitting.
After reaching 55 years, they will be entitled to a full pension which amounts to about 85 percent of the salary.
Those taking advantage of the VRS will have also have small loans up to 24,000 rupees (252 dollars) taken from the government written off.
Choksy said that the cost of the VRS was estimated at about $84.21 million, but the government hoped it will also lead to medium term savings for the state.
"We will immediately see a drop in overheads such as overtime payments and other allowances," Choksy said. "We will also save on electricity, stationery and transport."
Choksy also announced a 10 percent salary increase for all public servants from January and those taking the golden handshake will also get the higher pay before quitting.
He said that the government was able to make the increases thanks to the peace process with Tamil Tiger rebels.
The government entered into a truce with the Tiger rebels in February last year. However, the peace bid remains in limbo after facilitator Norway pulled out last week amid a power struggle between the president and the premier.
Bureau Report
"Depending on the peace process we will extend the scheme to security forces and the police too," Choksy told reporters here. He said the VRS was expected to trim the 1.09 million-strong public sector by about 30 percent in three years.
Public servants taking advantage of the VRS will continue to receive their monthly salary until they reach the normal retirement age of 55. They will also get an upfront payment of a year's salary immediately on quitting.
After reaching 55 years, they will be entitled to a full pension which amounts to about 85 percent of the salary.
Those taking advantage of the VRS will have also have small loans up to 24,000 rupees (252 dollars) taken from the government written off.
Choksy said that the cost of the VRS was estimated at about $84.21 million, but the government hoped it will also lead to medium term savings for the state.
"We will immediately see a drop in overheads such as overtime payments and other allowances," Choksy said. "We will also save on electricity, stationery and transport."
Choksy also announced a 10 percent salary increase for all public servants from January and those taking the golden handshake will also get the higher pay before quitting.
He said that the government was able to make the increases thanks to the peace process with Tamil Tiger rebels.
The government entered into a truce with the Tiger rebels in February last year. However, the peace bid remains in limbo after facilitator Norway pulled out last week amid a power struggle between the president and the premier.
Bureau Report