21 August, 2019

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Comparison; Wages In The Central Bank And Universities

By Usvatte-aratchi

In 2011, there were 1441 employees in the Central Bank and they were paid Rs. 2, 250, 029,000 as shown in the published accounts of the Bank. Then on average an employee was paid Rs. 1,560,000 per year, an average monthly pay of Rs. 130,000. Of all employees 11% were Minor Employees: drivers, peons and others.   Those not minor employees fell into two categories: Staff Class and Non-staff Class, roughly equivalent to professional and general service categories.  There were 646 employees in the  Non-staff Class and 629 in the Staff Class. There were 4 employees on fixed term contracts, who were not classified. That makes up the 1441.

Of all employees in the Staff Class, 17 percent [109 out of 629] had no post secondary education, whatever. Of them 83 were in Grade I, 23 in Grade II and 3 in Grade III and none in the highest grade, Grade IV. They are generally those promoted from the Non-staff Class on account of outstanding work in that class and promise of good work at higher level s of responsibility. Of all employees in the Staff Class, 28 [4 percent] had professional qualifications, without a first degree. Then 137 out of 629 [22 %] had no first degree. 248 [40 percent of 629] had only a first degree; 80 [13 percent] had a university degree and professional qualifications; 124 [20 %] had a post-graduate degree; and 32 [about 5 %] had a post-graduate degree and professional qualifications. Those in Staff Class who had qualifications beyond a university first degree comprised 38 percent of all in that class. Those with only a first a degree constituted 44 percent of the total, considering those with a professional qualification and no university degree as having obtained a university degree. Then 61 percent of the staff in the Staff Class had no education beyond a first degree from a university.

Let us try to establish the average wage paid to an employee in the Staff Class in the Bank. We know that the average wage of all employees was Rs.130,000 a month [2, 250, 029,000 (1/12, 1/1441).  Let us ASSUME that minor employees were paid on average Rs.30,000 a month. Their total monthly wage bill would be Rs.4,860,000. Let us also ASSUME that the average wage of an employee in the Non-staff Class was Rs.75,000,  2.5 times the average wage of a minor employee. They would be paid Rs.48,450,000 a month. That leaves Rs.144, 192,500 to be paid to 629 employees in the Staff Class, giving them an average wage of Rs.229,000 per month. That works out to three times the average wage paid to an employee in the Non-staff Class and about eight times the average wage of an employee in a the Minor Employee category. These multiples do not look grossly unlikely.

It is necessary to emphasize repeatedly that these wage rates are what I have ASSUMED that staff in the Bank are paid. I have used only figures available to anyone from published sources [Central Bank Annual Report 2011, page Part II-62] and I have not spoken to my friends presently in the Central Bank employ or were so employed at any time past. These figures are consistent with published accounts of the Central Bank for 2011.What is meant by consistent is that when any two wage rates are assumed, the third is determined for you with the residual obtained from figures publish by the Bank. There are three sets of staff, Minor Employees, Non-staff and Staff. Let us call their wage rates M, N and S. If you assume wage rates for M and N as I have done, S is determined for you. If you assume wage rates N and S, the wage rate M is determined. And if you assume wage rates N and S then the rate M is determined for you. It follows that if I have assumed too low a wage rate for minor employees [Rs.30,000 a month] , then the average wage for Staff Class is over estimated. If I have assumed too low a wage rate for Non-staff class, then too, the resultant wage rate for the Staff class is too high.  The argument can be extended with different assumptions, almost ad infinitum.

Consistency in that manner I have shown is no demonstration that the figures I have assumed are right. I think they are not far wrong. Of course, the Central Bank can advise the public the correct figures, much to the latter’s enlightenment. After all, it is their money and they have a right to know how they are spent.

To get back to the comparisons. The relevant category for comparison with university teachers is the Staff Class. All university teachers have at least a university degree, First Class or Second Class Upper Division and most have some post-graduate education.  In the Central Bank, 78 percent of employees in Staff Class have at least a university degree and 40 percent of them have had some post graduate education. A reasonable guess I have presented is that employees in the Staff Class receive about Rs.225,000 per month. This is also the average wage rate, which is paid to the 60 percent of employees   who have no more than a first degree and some less. We have learnt from Professor Amal Kumarage of Moratuwa that from October 2012, a Senior Professor, the highest level of employment as an academic in a university, will be paid about Rs.150,000 per month. A senior professor has one or more higher degrees, often including a Ph.D. degree, which is not true for staff in the Central Bank. That difference in wages does not seem fair and certainly seem wrong incentive-wise.  An assistant lecturer in a university, often with no more than a good first degree, will receive, Professor Kumarage  assured  us, close to  Rs. 50,000 a month, a far cry from what a new recruit to the Central Bank must be receiving.  A bright academic with a good first degree and a Ph.D. from a good Faculty has every incentive to take the first plain out of Katunayake. At the same time there is no clear evidence that there has been any large scale culling of staff at the Central Bank as they age, for whatever reason, including the search for higher wages. In 2011 no more than 11 [of 1441] staff members resigned from the Bank. If their current wages were too low, then there should have been a much higher turnover of staff. These wages are not essential to keep them employed at the Bank. The average age of employees in Staff Class Grade IV and III is 51 years and those in Grades II and I, 41 years. The latter category includes 106 persons [out of 472] who were probably promoted from the Non-staff Class and therefore older. If there were high turnover, we must see a much younger age profile for staff in this category. The argument concerning incentives will need more justification to hold water.  Work in the Central Bank is not fraught with unpleasantness greater risk to permit a higher risk allowance, to justify the higher wages.

The comparison between wages earned by employees in the Staff Class in the Central Bank and university academic staff make convinces me that university academic staff deserve relatively higher wages. The inability of universities to recruit some 3,000 [?] staff to its cadre year after year is evidence of poor wage incentives, among other things.

I have a more intimate knowledge of work in the Central Bank than in universities, although I am not completely unfamiliar with work in universities, either here or overseas or indeed, the history of universities anywhere over the last 800 years. I spent my first 3 years as an economist at the Central Bank of Ceylon and the Central Bank very generously provided for my education in Cambridge. I Iearnt the first letters of the economics alphabet in Peradeniya. I have always found universities very civilized places, havens in the midst of all the storms of noise and clutter outside. Walk through the tall gates of  Columbia College in Upper Manhattan, drive into Yale College in New Haven or walk into Colombo University and you  know you are in a place of civilization. Best of all are university towns. Drive into Swarthmore College about 15 miles out of Philadelphia, a huge city, Princeton in Princeton, New Jersey, through the great gates of King’s, Trinity or St.John’s in Cambridge  and many another to realize the validity of what  I say. So my loyalties are evenly divided between Central Banks and universities and this note bears witness to that tension. However, the comparison between wages received by employees in the Central Bank and in Universities makes me convinced of the case for higher wages to academic staff in Universities now.

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Latest comments

  • 0
    1

    Excellent analysis Dr. U – keep up the good work.

    The Sri Lanka rupee has crashed 30 percent this year. To even get the same wage in dollar terms, (never mind an increase to slow the brain drain from Lankan university system), FUTA needs to ask for a 100 percent increase in salaries of Dons. Those academics who work in the US or Singapore know that PhD academics are paid between 6,000- 12,000$ per month. A Senior lecturer, with a PhD. is offered a starting salary of 42,000Lankan rupees (320$). What an insult.

    This filthy and crooked Rajapakese regime is about making the family dictatorship and cronies ricvher by impoverishing the middle and lower classes in the cournty. This to end this joke and go for regime change.

    1. GOOD GOVERNANCE AND DEVELOPMENT POLICY CHANGE. Unfortunately, the University Economists have been abysmally silent on the wrong economic development policy path taken by the Rajapassa regime, and need to do a better job on this by generating public debate on the corrupt Rajapakse economic development policies which are indebting and impoverishing the middle class to subsidize the rich..

    2. FUTA needs to develop an EDUCATION WHITE PAPER on up grading Higher education. The economist and social scientist must work together while they can during strike to formulate a comprehensive WHITE PAPER on how an increase in budget would be utilized to better facilities and infrastructure for research, students etc.

    3. End to militarization, state criminality and military capital expenditure cut back and diverted to education sector. Investigation of the killing and disappearance of students in Colombo and Jaffna.

    • 0
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      @ John Wayne,
      I would like to know from you if universities in US and Singapore provide degree programs free of charge to the students?
      In USA, a student has to pay tuition along with so many other fees, these fees are utilized to support the infrastructure and recurring expenses of those universities and also to provide more remunerations for its faculty members also those universities have big endowments provided by private companies and wealthy people.
      However, in SL all the universities are state funded and the students do not pay any tuition, the entire cost for university education is levied on the tax payers on the country. Thus if the university “dons” ( these are not the dons you find in USA ,very lazy below standard lectures who have no clue of even how to submit an abstract to a peer reviewed journal!) must be paid millions of rupees that would cost more on the general public of SL, since the state universities do not charge anything from the students!

      • 0
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        All professionals in the health and education sectors need to be paid a decent wage and should get a 50 percent pay rise given crash of rupee and decline in purchasing power of the ruppee.

        Prefessional’s salary should be on par with the salaries paid to uneducated and wasteful politicians who think that they are gods set apart and have allocated themselves all sorts of perks and privilidges they receive out of tax payers hard earned money in Lanka.
        The wasteful govt expenditure on sports tamashas and loans taken for white elephant infrastructrue in Hamabantota should be diverted to upgrade education, health sectors and human development.. and pay a living wage to professionals who serve the people and educate the youth of the cournty

  • 0
    0

    A new Computer Science graduate student can easily make 10,000 USD (13 lakh) per month in US. So you can not blame them for leaving the country for greener pastures. The only reason these political jokers can run this country is because all the good people have migrated to other countries. On the flip side, US is the most innovative country in the world because all the smart people from all over the world migrate there.

    Until the brain drain is stopped there is no chance for Sri Lanka to come out of this hole.

    • 0
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      @ Nuwan,

      In US most of the universities irrespective state or private, charge tuition fees on their students, these fees are used to improve facilities and provide top class amenities to students as well as faculty members and university academics in these countries work hard, they have to publish research in peer reviewed journals, teach classes, apply for grants etc etc. You tell me what our “dons” do in SL universities? They just teach like in a school!
      Some even cannot write a journal abstract or a paper in English! Most cannot even speak in English, how can we open up to the world if this is the case?

  • 0
    0

    Dear sir ,
    if the rulers are uneducated, illiterate, shrewd BUT OVER SELFISH ,what will happened to the future of the country.

  • 2
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    In CB you have to work from 8.30 to 5.30 at a stress. You have to mark attendance. You have been asked to particular work, sometime you have no freedom to think. It is like a routine work. You have to work under tremedous pressure. That is why they are paid. Of course they have more perks as well.

    So we have no problem if people join CB. There is a limit. Not only CB even in other government banks, you are paid sgnificantly higher salaries than universities. The Head of the reserach unit in BC or PB is paid nearly 3-4 laks per months.

    But in universities we have more freedom. We are the person who decide our course material. Accroding to norms in universities professors can even do lecture 5-6 hrs per week, if he/she has 2-3 Ph D students. This is true for SL as well if you have Phd/M Phil students. Only few lectures spend their time for reserach. Most of the women lectures do their home work during the office hours. Some of the lectures used to come only for the lectures.
    Univ lectures are socially recognized. We hardly get pressure or cholestrorol due to stress of the work.
    University lectures can earn extra money by conducting short courses, PG courses, teaching other faculties etc in addition to the consultancy. These things can be done during the normal hours as well.

    You can not compare only the money you get at the end of months. That is wrong comparison.

    • 0
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      How unhappy these CB research people must be, working under such harsh conditions.

      • 0
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        They are not only unhappy, but also have gone insane, a proof of which is provided by them when they make public statements.

    • 0
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      I am a Heart surgeon.I spend 7 years in the medical college.I was passed out in 1987. I was jobless for two years. I joined the ministry of health in 1989.My initial salary was 1400 SLR per month.I spend 18 months as a house officer.I started reading to become a surgeon then onwards. I completed local training in cardiothoracic surgery in 2003 and got through MS and FRCSEd in the same year.Yet I COULD NOT AFFORD TO to by a car.I used public transport to attend emergencies though I was on call every day as surgical registrar and senior registrar.There were instances where the patient was dead, when I reached the hospital. ALL MY EARNINGS was SPENT for studies and at times for three wheels to attend drier emergencies, let alone my precious time.I left SriLanka in 2003 for overseas training in Cardiothoracic in the UK.I returned to SriLanka in 2005.I bought my first Car 20,00000 SLR.Hard earned money from England( Not a single cent from SriLankan Government.After lots of harassment by the ministry of health I was appointed as consultant Cardiothoracic Surgeon to the Lady Ridgway Hospital for Children.Unfortunately, There was no Operation theater to operate, No staff, No wards , No ICU for post surgical care and no surgical instrumens and surgical consumables.But, there were thousands of innocent children in the waiting list for heart operations.At that time my gross salary was 41000 SLR.

      We work hard to set up First peadiatric Heart surgical unit at The Lady Ridgway hospital. We commissioned it in 2007 with the help of the Ministry of health.The first open heart operation at lady Ridgeway Hospital was performed by me in 2007.From 2007 to 2008, We performed well over 200 open heart operations.No body appreciated our work and no bonesses at the end of each year, But bless with more and more patients to operate urgently.

      I was transferred to the National hospital in 2008.I performed at least 20 open heart operation per month In addition to other duties related my professin.Surgeon’s Fee for one open heart operation in the private sector hospital is 50000 SLR.But, My MONTHLY Salary is as follows,
      Basic Salary 54180.oo SLR
      P.A 3400.OO
      On Call 15000.00
      OTHER 5418.00
      Language All 1460.00
      COL 5850.00

      Total gross Salary 85,308.00 SLR.

      Deductions W&O P for PA 238.00SLR
      W& O.P FOR BASIC 3792.00 SLR
      INCOME TAX 812.22 SLR
      Aggrahara 75.00
      stamp 25.00 SLR

      ALL DEDUCTIONS 4942.00 SLR

      My Net Salary after 22years uninterrupted service 80308.00

      Thanks to Mr P.B Wijesundra(Secretary to the ministry of finance)
      on his directives, this Salary is credited to my Bank account. Each time, I withdraw money, I have to pay government Taxes.When I buy daily needs out of my salary ,I have to pay VAT AND OTHER MINOR TAX to the government.Also note that , Doctors DO NOT get fuel allowances as other parallel government servants.I have to spent 30000 per month to fuel my car which is used only for the purpose official work.Army officers get 40000 SLR per month as vehicle allowances. I do no t like to comment on their educational qualifications.

      My QUESTION is Dr.T.S.G.Peiris, can you compare your contribution to the country with that of a medical consultant for the salary he or she received per month?

    • 0
      0

      You seem to be a lecturer backing the politicians of the present government. I don’t think you even deserve your present salary.
      You have conveniently forgotten that a senior lecturer in a university should spend about five to six years of his life to get his qualifications. An academic qualified with a PhD from a foreign country can get a job there and lead a very good life. But once he/she comes back to Sri Lanka, what is the salary he/she gets?.
      If a senior lecturer wants to get a promotion, he/she should do continuous research for another five/six years. All this outside the normal work load you are assigned. It is not job you can limit to 8 am to 4 pm type work done at other government places. As you know, university lecturers have work norms set by the UGC and at the end of each year all the lectures should show that they have fulfil the requirements.

      • 0
        0

        As you put it correctly if the norms are set by the UGC then our university academics get a salary according to those norms!
        We should not compare the salary earned by a university lecturer in a foreign country because in those universities no one provide degree programs tuition free like in SL, you have to pay fees and those fees are used to uplift the academics life and provide attractive remuneration packages to those faculty members, however like in SL universities academics just don’t teach like in schools, they carry out cutting edge research, and secure funds/grants, but do you see that in SL universities? How can when most of the academics have the intention of being selfish just to think about their family and their future.

  • 0
    0

    Without any single publications in international indexed journals, professor salary and title used by more than 94% of Sri Lankan Professors. Sri Lanka has the lowest qualified Professors in terms of any international professor indicators. Even in Sudan, Ethiopia and PNG need 15 international high end indexed journal articles to consider as professor. But in Sri Lankan profs do not know what in high end indexed…etc. Therefore they deserve very less salary and salary should be link to performance and international high end journal publications, foreign exposure and PhD from right place. These people are never allow any qualified PhD holder to join university system and system run as a mafia with their kiths and kins. They never recruit qualified person to University teacher posts. All recruits are family and friends, etc based.Now right time to remove these fake professors and increase salary for right professors who satisfy international conditions to be called as a professor. Now seems like few jokers by using dirt tactics became professors and claiming profs in Sri Lankan Universities. Exposed all of them.

    • 0
      0

      Seems you do not t know the ground realities. So best thing is to keep your mouth shut.

    • 0
      0

      You get the lowest qualified Professors when you offer the lowest salaries. Simple as that.

      • 0
        0

        Well said! Most of the academics in SL cannot even speak English, how on the Earth could they publish their work and speak in international conferences?

        • 0
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          Dear. I think you never attended to a international conference. I met one Italian professor who came with a translator. He is a famous professor in Robotics.

        • 0
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          Yes, you should better study more about such conferences before trying to ridicule out the lanken academics.

          There are science highly recognized researchers from China to Europe (non speaking european countries), most of them cant speak good English to be able to address themselves in such forums.

    • 0
      0

      Yes. I agreed with you that the Srilanka has the lowest qualified professors, Because all qualified professors have already left the country for greener pastures because of the low salary.For example, Prof Peiris, who discovered Bird flu virus in Honkong University was a senior lecturer in Virology in Peradeniya university in early 90S.He could never have discovered Bird flu virus if he was continue to be in SriLanka. Other examples are Prof Melvin Pinto former prof of Microbiology now in Australia, Prof Mrs Shanthi Mendis Who researched on Kidney disease in North Central province.They all are very good lecturers.The same thing is happening in the medical field. Nobody interested in Heart Surgery and Neurosurgery, because more work less salary, above all poor quality of lives.
      When agitate for vague increase , The government give some allowances with out increasing the basic salary.What would be our fate once we retired?

      Those who are working in the Banking sector are provided with medical allowances after their retirement. But nothing for the government servants unless you have political influence to get adviser post or ambassador post overseas.My nee just passed her A/L and got attached to a Bank a year ago.Her salary is more than mine.

    • 0
      0

      The government has introduced research allowances for doctors.Maximum you get is 30000 rupees per year.It costs about 40 $ to download one reference article.When I was in England they paid me 5000 sterlings a year for professional development. What professional development in SriLanka.You have to fist think about, How to meet the ends at each month.Please note there are medical doctors attached to Universities.

    • 0
      0

      Very true. Not only some of them do not have any qualification other than recommendation from fellow senior professor and political backing. If a true researcher comes from abroad to join as a professor these jokers discriminate him/her till they leave their job. Some so called professors work happily for NGO’s against their own country. Eg. Jehan perera of Colombo university who worked for NGO. Some are political appointees with No proper qualification. Eg. Vice Chanceller of Sabaragamuwa University. This university system of Sri Lanka has become a joke, with most degrees can be obtained while doing another job. Which means there’s no research whatsoever involved. Undergrads simply copy what lecturer says. Gone are the days of great professors like J.B. and Sarathchandra.

  • 0
    0

    Do not compare Central Bnak it is only for Economics Special graduate with second class upper division pass from good universities. I bet none of the University Lecturers can through that entrance examination. You take Sri Lankan Engineering faculty Senior Prof lists. Shame to see all of them became profs by publishing low level non-indexed and non listed Engineer and Transction magazines. Exposed them and sack them for wrong use of titles. In other faculties utter jokers became profs. Even in Sudan, PNG and Ethiopia your need good PhD degree from West and minimum 15 publications in high end indexed journals to apply for prof position.

    • 1
      0

      If you do not know the ground realities best thing is to keep your mouth shut.

    • 0
      0

      The allocation for education is higher in Sudan, PNG and Ethiopia than here.

    • 0
      0

      Well said! Our local “professors” are low class just like our politician, they are deceiving the SL general public. In order to become an assistant professor in the USA you need to do a PhD publish in peer reviewed journals on top of that you need to do a postdoc there also you need to publish in journals and you will only get your tenure if you publish and secure grants and funding to do cutting edge research!
      In SL how many our our “professors” publish? Some cannot even speak and write good English, which is the medium of communication in Science around the world!

      • 0
        0

        @ Mohan,

        Probably you live in English speaking country.
        Therefore, you may think English is every thing. If you can go to Japan or German, can they speak well in English. But there are lot of academic who got even Nobel price in those countries. I am very sure they can write well in English.
        So do not take English as a factor for this discussion.

      • 0
        0

        I’ve met a Swedish academic who cannot speak English than my self. Those who think English is everything better go to countries like Germany, France, Japan, Russia and China and have a look how they developed their countries “WITHOUT” English. You people still can’t get that colonial mindset out of your brains!

        • 0
          0

          Do not forget that most of the current knowledge is produced in English and all books are simultaneously translated into European languages including Swedish. Japan is another such country and China is now trying its best to capture the trend. Hence, for them, English is not essential. But in SL, a book of worth is translated into, say Sinhala, very rarely and even then, it is produced in a Sinhalese not many cannot understand. That is why a knowledge of English is useful, but not sufficient because for one to get the best results, he should have cultivated the practice of critical reading and above all, understanding of what he has read. The Buddha has identified five-most requirements for a Bhikku to shine his monastery in the Aavaasa Shobana Sutta: Learning many Dhammas, retaining those Dhammas in memory, gaining ability to relate those Dhammas to others in his own words, reflecting on those Dhammas continuously and seeing beyond those Dhammas. Without those five qualities, learning even God Sakras language will not be helpful!

  • 0
    0

    Mr Anura sampath perera is a NDT graduates who hate to Engineering faculty please ignore his massage

    • 0
      0

      Doesn’t matter he has a Diploma or a PhD, what he says has meaning! When you cannot ridicule the facts,attack the person its much easier! That’s seems to be your way of approaching this argument. Isn’t that correct Mr. Karunarathna?

  • 0
    0

    We all agree that the university dons should be paid higher. However the bottom line is we cannot compare two jobs/positions only based on the qualifications and the corresponding salary. There are other things like the job description and the environment as Dr. Pieris highlights. If a central bank employee makes a mistake in the budget or delays giving a report he/she may be out of a job. The same cannot be said about the lecturers. Look at the expectation and then lets talk money. Are we honestly doing the best we can for the money we get? If the answer is yes, then lets ask for more (I am sure some people will go rabid when they see this statement, but look at the entire university system and not just your own university and you will see light). Just because we need to make a living does not mean we should be paid for delivering a substandard job. There are many hard working lecuturers who deserve more than what the FUTA is asking. However due to “fairness” issues they are over looked and treated the same way as the next person who hardly does work. So as a lecturer in a university I would support making everyone of us accountable for what we do first, and then match the salary based on what we deliver. This is why I whole heartedly supported the “research allowance” concept. I am sure many a lecturer would disagree with me and say the allowance should be given if we do or do not do research.

    • 0
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      Can you pl. give us some instances where actions were taken against CB employees who didn’t perform their duties?

    • 0
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      We also need to keep in mind that in SL, universities do not charge a fee on the students for their degree, every expense is charged on the tax payers of the country!
      In SL people talk about “Right for Education” however, only 18% of qualified students enter university and they along with the academics obstruct others from earning a degree by paying for it in SL! This is very selfish and should be looked down upon, no where in the world you can see such things are happening.
      We always have to remember in foreign universities they charge fees and the revenue is utilized to uplift academic facilities and provide attractive remuneration packages to faculty members. How can we do that in SL, all the burden will be stacked on the shoulders of the tax payers! Did you know that in USA students as well as lecturers have to purchase a parking permit if they park their vehicle in university parking areas? What would happen if such a thing happen in SL, FUTA will again strike. The Sri Lankan mentality is that everything must be provided free of charge! We would not go far like that!

  • 0
    0

    I am not sure whether Aruna and Sepalee know the real situation in Sri Lankan Universities. If you can come to University of Moratuwa its different. Here recruitment is for the qualified person. No such family and friends recruitment culture.
    May be your opinion is correct for very few places but not for all places. Also the people who comment on publication of indexed journal MUST note that the funding situation for reseach in Sri Lankan universities. Almost all places ZERO funding. How comes even a paper for low level journals? How to do a research. Its true very few places can earn their funds.
    If you do not know the ground realities best thing is to keep your mouth shut.

  • 0
    0

    Thank you, Dr. Uswatte! Appreciate your careful and thoughtful argument, unlike the biased and uninformed opinions that have been expressed by some of your contemporaries on this issue.

  • 0
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    Mr Cabral you have very basic qualifications. What have you done for the country in your present job. NOTHING
    So shut up

  • 0
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    Sepalee and Aruna is well know about University inside. All recruits are family and friends, etc based in many Universities. Colombo University Arts faculty infamous notorious family dept (Economics) is a good example. Many examples can be seen in many faculties.In this dept grandfather is an emeritus and all others are family members, lovers and henchmen of each others and son, sons friends …etc. In overall more than 40% university academic staffs are females and another 10% husband and wife and another 40% are whatever means relatives to each other.Take Sabaragamuwa, Rajarata,Kalaniya, Ruhuna an recently I did search and survey found all the professor appointments are fakes. No PhDs and not any single publications in international indexed journals. Sack them. Even in Sabaragamuwa Univerity PhD Institute head does not have PhD.

  • 0
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    Ruwan I can prove more than 80% Moratuwa University Professors are fakes and only have publications in non-indexd, non listed IESL Engineer and Transction magazines. Interesting thing is all these magazines are handled by themselves. You take J’pura University more than 90% profs are fakes in international terms. PIM, J,Pura you find professors without first degree and he published the journal he is editing and became a professor an all the members in his professor committee later he appointed as Borad members to PIM. Coombo University Arets faculty is worse in appointing Proessors. Nice joker title Senior professor you can not find anywhere except in Sri Lanka.

  • 0
    0

    Aruna and Sepalee knows real situation inside Universities. All recruits are family and friends, etc based. Colombo University Arts faculty infamous notorious family dept (Economics) is a good example. Many examples can be seen in many faculties.In this dept grandfather is an emeritus and all others are family members, lovers and henchmen of each others and son, sons friends …etc. In overall more than 40% university academic staffs are females and another 10% husband and wife and another 40% are whatever means relatives to each other. Please recheck qualifications of Sri Lnkan Professors and sack fake ones and increase saraly only real profs. Real indicator to bea professor: Minimum 15 international high end indexed journal articles and PhD from top ranking University.

  • 0
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    As a non Academic, judging from the above comments and the general trend of the country from Independencee to date, I wish to state the following. I believe this society had high University standards maintained then and the products were world class, who stood recognition. Thanks to the uneducated or rightly, Politicians without knowledge and Intelligence some of whom were led by Academics and Professionals for their narrow gain, ruined everything in the country. The knowledgeble and the educated Politicians also played ball with the country’s Education and the Economy. Soon after Independence it was a case of winning elctions at any cost. Hence the Politicians started to pander the voters with benifits especially to the Poor as if they were paid out of their personal pocket to win Elections to come to power. This action has cost the entire Nation as we have to repay with interest today.

    There is nothing Free that can be given to a section of society not sweating for it, on the sweat of someone else. To understand this axiom is basic knowledge of a successful economy, otherwise the whole system has to collapse at some point, as is happenng to our’s now, for the wellfare the society enjoyed all this time. Education to a society is no exception to this rule. Although we harp on Free Education, there is no free education as the whole society pays for it. What has led us to the present chronic economic problems we face today, from Independence is that we were one of the few Welfare States, where Education, Health and Transport was subsidised by the State. We could have weaned out of this system had our Govts been intelligent and sincere in their commitment. But unfortunately our society falling in to the hands of Political Ruffians, we are where we are today. Instead the society reaping the benifits, the Ruffian Politicians have feathered their nests well for generations to come whatever the Political Party they belong to, except may be for one or two in the calibre of RW.

    To highlight our political inefficiency, I like to cite one case in point. Take the Raliway Department. At the time we gained Independence The Railway was in a sound financial position, earning it’s own revenue with a workforce of around a five thousand workers. The Carriages and the track were in prim and proper condition. The State was earning money from a staggered price policy with First Class, Second Class and Third Class travel. Sevala Banda’s Govt. policy of introducing a classless society where all are equal as Sahodaryas, the structured price policy was done away with and all were compelled to travel in one class and so the price, resulting in the Revenue being depleted. Thereafter the Govt had been subsidising the Railway with no improvement to the Railway or track in any significant manner but increasing the work force over fifty thousand staff currently. So is it any wonder why the Railway has failed and has become a financial burden. The tarcks are in a deplorable condition where at some places is covered with weeds and the tracks can not be seen. So is it any wonder we are in this economic predicament today thanks to Golden Brains?

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    Dr. UA has done an extensive analysis and compared Uni & CBSL. There seems to be a barrage of info on SL Profs and their credentials and contributions and hence they do not deserve high salaries compared to CBSL experts. YES IF YOU SEE HOW THE CBSL EXPERTS HAVE INVESTED OUR MONIES AND GOT GOOD RETURNS THEY SHOULD BE PAID BONUS ON PRO-RATA BASIS. (Sorry if they get minus salaries, if we demand that the losses be recovered)

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    Thank you Sir for your fine analysis and the balanced opinion.

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    Well the Central Bank of Sri Lanka is run by a Chartered Accountant NOT by an economist. What qualification does he have? other than bootlicking?

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    Thanks for this analysis. @Mohan, yes you must be in English speaking country. No need to compare Sri Lankan Professors with American Professors for salary and other works. Just simply compare Sri Lankan Academics with MPs, and Ministers like SB. What do they do [everything is passed to the President], even a lecturer probationary is doing something meaningful to the country than a Minister. Compare these salaries/perks before [1970] and now. Why this difference. And how much of money in this country is wasted on mega events/projects. Those are tax payers money. Why should tax payers pay for their kid’s education. I do not understand your point/no point???

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    I am not literate in many of the disciplines that you guys talk about. But I think the article bellow published on Daily FT would provide some perspetive to the quality of the Central Bankers work

    Tragic policy making and ‘Wonder of Asia’: What happened and what’s in store?
    Published : 12:02 am July 25, 2012 | 532 views | One comment | Print This Post | E-mail to friend

    By a Special Correspondent
    A year or back from today, Sri Lankan economy had been sailing strongly amidst global economic typhoons. Most of the macro variables were reflecting peace dividends and rejuvenated hope. However, by mid 2011, the country’s trade deficit, fuelled by credit expansion was signalling early signs of an economic turmoil.
    Perhaps being dazzled by the 8% economic growth story, the country’s policymakers turned a blind eye to these adverse developments and fell short of implementing tightening measures to arrest an economy-wide crisis. Despite warnings of many non-partisan economists who voiced their concerns, the monetary authority continued with expansionary policies till the fiscal muscle was flexed to remind the need to tighten the interest rates and exchange rate.

    The results of the delay in taking necessary policy measures are now felt across the economy with both households and firms are fighting hard for survival.
    Economic model towards ‘Wonder of Asia’
    The economic model advocated by the policymakers was mainly targeted at achieving growth through stimulated consumption. For example, all publications, speeches and media releases of the monetary authority were centred around 8% growth and increasing per capita GDP; and the words ‘external sector’ were omitted in important documents.
    In the course, policymakers seemed to have overlooked that the country’s economic fundamentals were not supportive of such high persistent growth rates with savings and investments are grossly inadequate. They just leveraged the ability to inflate growth in the short run through stimulated consumption; as explained by the short run non-neutrality of money in economics. It was jubilantly cited that the country’s growth was only second to China in the Asian region.
    Clearly, the secret of high growth rates are sustained savings translated into investments; and not continued lose policy. The table compares the savings and FDIs of selected high growth Asian countries that the policymakers have been trying to emulate in terms of growth.
    The comparison is straightforward; it is a fundamental fallacy to emulate high growth countries when a country lacks prerequisites. A country shall adopt policies to create an enabling environment rather than to create artificial expansionary policy regimes if it wants to continue high growth.
    Short-term expansionary policies will lead to high growth for a couple of years and destroy the potential of the economy thereafter; compelling implementation of painful stabilisation measures. Therefore, one could conclude that present economic conditions are a result of past expansionary policy measures implemented by the policymakers.
    Let’s revisit the economic development model spearheaded by the policymakers of Sri Lanka in a nutshell. To support the growth, interest rates were kept low throughout the year 2011 although market liquidity had been continuously eroding: Excess liquidity in the market was wiped out by the end of the year from a beginning of Rs. 120 b. Low interest rates were used to spur domestic credit; especially import loans. Imports of ‘other’ consumer goods (including vehicles) and investment goods increased by 67% and 60% YoY, respectively. By August 2011, the trade deficit had exhausted monetary authority’s full year deficit forecast.
    Dela Ru operation (money printing) was kept busy to support Government expenditure and the monetary authority’s holdings of Government securities shot up from Rs. 3 b at the beginning to Rs. 170 b at the end of the year 2011.
    Moreover, the monetary authority financed 41% of the fiscal deficit, against that of 0% in the previous two years. Whilst lending to Government, monetary authority made a profit of Rs. 48 b, a 300% growth year-on-year. (It is widely accepted that abnormally profit making monetary authority is a burden to the economy, because it makes profits mainly through seigniorage and investments made on its assets – a clear explanation for the monetary authority’s 2011 financial statements.
    Exchange rate pressure arising out of increased money supply (owing to credit expansion and money printing) and the bloated trade deficit was neutralised by releasing forex reserves to the market. Towards the end of the year, monetary authority acknowledged that its projections were unrealistic (if not far from reality). However, it took at least seven months from July 2011 to respond to deterioration of trade, exchange rate pressure and credit expansion.
    Policy rates remained untouched after January 2011 till February 2012; and the exchange rate was vehemently defended depriving its real value in 2011 till a policy package including structural adjustments and flexible exchange rates was advocated in February 2012.
    (The exchange rate was defended from May 2009 onwards i.e. it was prevented from appreciating and sterilised purchases were made steadily. Then un-sterilised purchases were made. From late 2010 it was defended in both directions. Sterilised sales began in June and August. Exchange rate defence itself had no problem).
    Consequences
    The delay in policy to arrest the situation was costly. Low interest rates fuelled credit demand and the private credit grew by 35% in 2011. Increased import credit along with overvalued currency drove imports up whilst expensive rupee discouraged exports; paving the way to the country’s largest trade deficit in the history at 17% of GDP.
    The country lost one-third of reserves in a bid to exacerbate exchange rate pressure i.e. sterilised sales; and consequently net international reserves declined to around US$ 2.5 b by the end 2011. The exchange rate’s short term stability outlook was also endangered; and its stability was handed-over to the speculators’ hand.
    Year-to-date 2012, the currency has depreciated by as much as 16%. (It is the Secretary to the Treasury now has to come forward and plead the speculators to control their activities to achieve exchange rate stability.) The inflation was given a booster to commence its upswing due to increased money supply. The Government was compelled to take explicit measures to reduce imports.
    It is noted that giving more flexibility to exchange rate in mid 2011 would have minimised the trade imbalances and resultant exchange rate pressures; whilst increasing policy rates could have written off a significant portion of the credit expansion. These measures would have avoided the need of painful adjustments at a latter point in time.
    A flexible exchange rate is widely accepted as the best stabiliser of imbalances in trade and forex flows. The monetary authority is expected to intervene only to tackle short-term imbalances, leaving structural adjustments to be handled by the equilibrium rates. Persistent intervention distorts a country’s international trade and leads to currency crisis.
    In the Sri Lankan case, the monetary authority tried to dictate terms over interest rates and artificially suppressed the exchange rate, requiring painful adjustments for stabilisation at a later stage. It is not worth mentioning the impact of these policies on the common man and corporate sector.
    The bottom-line is that policymakers’ dream of sustained 8% growth became the Achilles Heel for Sri Lanka. The economy has ‘just started’ paying the price for 8% delusion with a period of painful adjustment. Without future structural adjustments towards an enabling environment, growth honeymoon is over for Sri Lanka.
    What next?
    The next logical question would be ‘what next?’ A rational person may expect the policymakers would rectify its own ‘pride and prejudice’. Unfortunately, this will not come true in Sri Lanka with a set of officials and regularly boasted ‘400 economists’ at the centre who are not willing to engage in a constructive dialogue and self criticism.
    The institutional capacity in economics and finance appears to be malnourished and overall modelling frameworks are malfunctioning. Out of many, let me quote two examples in relation to the monetary authority.
    1. Exchange rate projections
    Monetary authority’s annual report 2011 discusses the impact of policy package that it implemented in February 2012 on the short to medium term outlook of the country in detail. However, it fails to add even a one liner on the outlook of the exchange rate.
    Nevertheless, the table below computes the implicit exchange rate (last row) used by monetary authority in its annual report 2011. The total nominal GDP value and GDP per capita in US$ terms extracted from the annual report are used to compute the exchange rate forecasts of the monetary authority. Accordingly, the implied exchange rates are declining from 121/US$ in 2012 to 114/US$ in 2015 – may be in line with unprecedented growth of BOP surplus as projected by the monetary authority into the future. As citizens of this country why mot we ask for the assumptions behind these exchange rate?
    1. Population was projected applying 1% growth rate on the midyear population based on historics given in the Annual Report of the monetary authority.
    2. Per capita was computed by dividing the GDP by the population
    3. The ratio between the per capita GDP in rupees and in USD is the implicit exchange rate.
    These projections could amount to gross professional negligence from the part of the policymakers. One could sincerely hope that some legal activist with means will go for public interest litigation against these almost criminal behaviours of policymakers.
    Unless this happens, the people of this country should not be surprised if the policymakers admit in 2015 that its projections were little off (like it did in 2012) and that $4,000 per capita target as charted in the ‘Mahinda Chinthana’ was not achieved because of a minute projection error. For the moment, there is one burning question to be raised: Are the policymakers trying to deceive His Excellency the President? Or the economists and analysts of this country? Or the general public?
    2. Monetary policy projections
    Monetary policy is the bread and butter for a monetary authority. In Sri Lanka, the monetary authority uses broad money (M2b) as the intermediate target of monetary policy, which is linked to reserve money, which is the operating target, through the money multiplier. Let’s look at the forecasts in relation to money multiplier.
    For 2012 onwards, the forecasts are more or less the same; more interestingly reserve money and broad money are expected to grow at the same rates. This implies that money multiplier (M2b/reserve money) for the forthcoming years would be held constant 5.67, which is the figure reported for 2011. Generally, the money multiplier is influenced by the monetary authority’s Statutory Reserve Ratio as well as deposits drained out from the banking system. Therefore, it is highly unlikely that money multiplier will remain constant as the deposit habits of the people depend on many factors.
    The monetary authority forecasts that among other variables inflation measured in terms of GDP deflator is expected to decrease; and this itself is a factor that would bring about changes in the multiplier thorough its impact on deposits to currency ratio. Although the assumptions are not clear, one thing is clear – that is the monetary authority’s forecasting does not rely on an integrated platform. And the calculations are made on a modular approach.
    The monetary sector roadmap 2011 charts the monetary authority moving towards an inflation targeting framework. One would think it is better to stay in the monetary targeting framework rather than to go for inflation targeting with the present skill level at the monetary authority, as inflationary targeting demands significant modelling and forecasting capabilities compared to the present framework.
    Why this?
    Many allege that the decision making at policymaking bodies is not objective; and less independent. To support this view, analysts quote many recent instances such as EPF investment saga, action taken in TFC and hedging deals and issues in financial statements of deposit insurance scheme of the monetary authority. The Governor of the monetary authority himself was getting distracted with involvement in unrelated activities like IIFA and Commonwealth bid. The job of a Central Bank Governor is not a part-time activity.
    On the other hand, the policymaking institutions suffer lack of quality human resources. Unlike in many other countries such as Singapore, Canada; the monetary authority does not have mid career programs to attract experience. The management positions of the monetary authority are filled only with those who enter the institution at a very young age as management trainees. The other institutions are dominated by SLAS officers whom by definition are administrators and not specialists/economists. These people generally do not have experience in the financial markets and mostly unaware of the complex real world financial and economic transactions and modelling.
    So there is an urgent need for reforms at policymaking bodies in terms of independence and capacity. It is the time for those who are concerned, interested and knowledgeable to come forward and demand that the country is in safe hands – who know how to handle monetary and fiscal policy and the economy, who have experience in real world financial markets, who believe in integrity and professionalism.
    “The world suffers a lot… Not because of the violence of bad people…But because of the silence of good people.”
    (The author invites a constructive dialogue for improvement in economic management of the country and can be reached on analystsl@yahoo.com.)

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    Dr. Uswattearachchi’s article seems well argued but unfortunately it is not.
    Firstly, it seems he has been misled in his calculation, that the determined salary for an average staff-officer is Rs 225,000. Even one of the three deputy governors do not get that amount.
    Secondly, comparing salaries of different professions which are not comparable is stupid. Central Banks all over the world have a different salary structure, since there is only one institution of its kind in a country.
    However, it should be noteworthy that the recruitment process for the staff category of the CBSL is open and transparent. Anybody who has a 1st Class or 2nd Class upper degree or equivalent qualifications can apply for when the position is advertised.
    It is well known that at every recruitment University lecturers, SLAS officers, Engineers , accountants do apply In this way. Candidates who possess the minimum required qualifications face a test comprising of IQ, Mathematics, GK papers. Those who get through this test are called for interviews.
    That is how officers are selected to be recruited to the Staff Class positions of the CBSL It is clear that if you have the minimum required qualifications and if you are competent enough to be selected you enjoy the equal chances to join the CBSL staff.
    After being absorbed to the CBSL staff, he/she needs to undergo training in sometimes a completely different working schedule. The Staff of the CBSL is not homogeneous in their specializations. Not only Economists, there are IT professionals, Accountants, Forex dealers, Administrators and even Communication experts in CBSL service. and Yes they are paid high but similarly, an accountant in a state/private bank is paid high compared to a school teacher in the subject of accounts, who possess the same qualifications. An editor in a leading newspaper is paid high compared to a Sinhala/English or mass communication teacher. That’s life. Everyone has a reason to choose a profession, which cannot be fully compared to another. One profession is paid high, but may have high risks, less leisure. One may be the other way around.
    I agree that everybody should have the right to fight for a better salary for the job that they do, but cross-profession comparison is not logical. I am sad to know that a person like Dr Uswattearachchi does not have that understanding!

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