• Say interest must be charged as agreed upon at the time of obtaining loans, not per subsequent hikes

Claiming that more than 80% of Government employees have obtained bank loans for various purposes, the Sri Lanka Government Officers’ Trade Union Association (SLGOTUA) stated that

the Government should instruct the relevant banks to charge the interest as agreed upon at the time of obtaining the loan, and warned of well-organised trade union action in the near future

unless this is done.

Speaking to The Morning, SLGOTUA National Organiser Pradeep Basnayake said: “More than 80% of Government employees have obtained loans for various purposes. As all banks have significantly increased interest rates during the past few months, Government employees, along with everyone else, are facing severe hardships. The monthly instalment has almost doubled as of now, but none of our salaries have increased for years.”

Claiming that banks have also begun operating like a mafia now, he said that it is unethical to hike interest rates at a time when the people are affected due to the economic crisis. He also said that the teachers’ trade unions have already expressed their opposition to the

Government’s policy regarding the matter, and that the SLGOTUA will also discuss with its member trade unions and consider taking all possible action to demand that the Government Provide them with some relief.

“We do not mind paying the interest rates to which we agreed when we obtained the loans.

When we obtained the loans, the interest rate was about 7%, but now it is about 30%. How can anyone afford such a hike? If the Government wants us to pay loan instalments at such rates, it's Hould increase our salaries too. We will keep requesting the Government to prepare a

programme for this issue. If no relief is given, we will launch a well organised trade union action with the support of all Government employees,” added Basnayake.

State Ministers of Finance, Ranjith Siyambalapitiya and Shehan Semasinghe, were unavailable for comment on the matter.

In view of the current economic crisis, the Central Bank of Sri Lanka (CBSL) decided to increase the lending interest rates and currently it is at around 15.5%. With the CBSL raising the interest rates, the licenced banks have raised their loan interest rates by large amounts and currently it

is close to 30%. In this situation, many people are complaining about having to pay back even the loans taken before the economic crisis at the current interest rates.