Colombo, November 7 – President Anura Kumara Dissanayake announced that the state administrative system has been severely weakened due to years of unfilled vacancies in the public service, emphasizing that revitalizing the public sector is a key priority of the 2026 Budget.
Presenting the Budget Proposals for 2026 in Parliament, the President revealed that a formal study conducted by a committee chaired by the Prime Minister had reviewed the country’s public service recruitment process and overall workforce management. Based on its findings, approval has been granted to recruit nearly 75,000 individualsthrough a transparent and merit-based procedure.
“These recruitments will focus on essential positions such as technical officers, law enforcement officers, and revenue officers, who are vital to maintaining the efficiency and continuity of key state services,” President Dissanayake said.
He also underscored that, going forward, all recruitments, promotions, and related administrative actions in the public sector will strictly adhere to prescribed examinations and service regulations, free from political influence — ensuring equal opportunities for all qualified candidates.
In addition to strengthening public service management, President Dissanayake announced a series of financial and welfare benefits for public servants, including:
- Restructuring of the housing and property loan scheme, increasing the maximum loan amount to Rs. 5 million.
- Rs. 500 million will be allocated for these loans, with a 4% concessional interest rate for the first Rs. 3 million and a 2% rate for amounts between Rs. 3 million and Rs. 5 million.
- Revision of the Agrahara Insurance Scheme contribution to maintain its sustainability.
- The minimum contribution of Rs. 125 will rise by Rs. 75.
- Monthly contributions of Rs. 300 and Rs. 600 will be increased by Rs. 150 each.
- Increase of the interest-free festival advance for government employees from Rs. 10,000 to Rs. 15,000.
- Enhancement of the distress loan advance from Rs. 250,000 to Rs. 400,000, at an interest rate of 4.2%.
The President noted that these reforms are intended to both restore efficiency in public administration and improve the living standards of state employees, ensuring a more motivated and equitable public service.
