May 18, Colombo (LNW): The Sri Lanka Savings Bank Ltd., (SLSB) is set to implement a voluntary retirement scheme (VRS) for its employees offering an alternative for those who opt not to retire by allowing them to be absorbed into the National Savings Bank (NSB).
The Cabinet of Ministers at its meeting on Monday approved the implementation of voluntary retirement scheme for emplyees of the Sri Lanka Savings Bank Ltd
Established as a wholly-owned subsidiary of the NSB in 2019, the SLSB will now see its assets and liabilities transferred to its parent organisation, NSB, along with the integration of its workforce. As at end of 2021, SLSB had 106 employees
Cabinet Co-Spokesman and Minister Bandula Gunawardena told journalists yesterday it was decided to introduce a VRS and make a payment taking into account the market factors for the employees who retire voluntarily.
“If there are employees who do not like to take the VRS offer, they will be absorbed into the National Savings Bank workforce,” he said, adding that SLSB only had a small number of employees.
He said the process of transitioning employees from the SLSB to the NSB is already in progress. As part of the scheme, employees who choose to retire voluntarily will receive compensation based on market factors, providing them with a viable option for their future.
The proposal was presented by the President in his capacity as the Finance, Economic Stabilisation and National Policies Minister.
SLSB was established in July 2006 under the Banking Act and incorporated under the provision of the Companies Act. It commenced business on 10 March 2008 as a state owned Licenced Specialised Bank.
In 2010, SLSB was able to meet the deficiency in capital funds on 30 September 2010 with the merger of National Development Trust Fund (NDTF) Company.
In October 2019 SLSB became a fully owned subsidiary of NSB. The major operations of the SLSB are deposit mobilisation, granting of loans (Microfinance/ commercial credit).
In addition, the bank obtained leasing and pawning licence in 2012 and commenced leasing and hire purchase businesses in February 2012. Further, the CBSL granted approval to open three new branches in Matara, Mannar and Anuradhapura.
Total Assets as at end 2021 amounted to Rs. 8.7 billion and liabilities were Rs. 1.8 billion. As a result of increased profit and other reserves, the total equity of SLSB was Rs. 6.8 billion in 2021.
