President says it is difficult to offer a big pay hike

The decision was made at a meeting with the representatives of state sector trade unions at the Temple trees on Monday.

Addressing the meeting of representatives from 50 trade unions, the president admitted the need for a salary increase in the wake of skyrocketing cost of living (CoL).

'Realistic agreement'

"I admit this is not enough. But it is necessary that we come a realistic agreement," Mr. Rajapaksa said.

Chairman of the Salary and Cadre Commission, Lionel Fernando, said the pay hike is only aimed for the junior workers.

I admit this is not enough. But it is necessary that we come a realistic agreement President Mahinda Rajapaksa

Senior Level (SL1 and above) workers will only receive Rs. 375 increment a month from July to cover the cost of living, he said.

"President agreed to pay a supplement of Rs. 1000 after listening to our request," W Piyadasa, chairman of the state sector trade union federation said after the meeting.

'Not adequate'

The junior workers are to receive another Rs. 625 in addition to that increment.

President of the Health Services Trade Union Alliance, Saman Ratnapriya, told BBC Sandeshaya that the increment was inadequate in the current inflation and CoL.

However the unions will decide on the next course of action after further discussions, he added.

The JVP that demanded Rs. 5000 salary increase did not attend the meeting called by the president.