More than Rs. 93 billion per month is required to settle the paychecks of 1.5 million public servants in Sri Lanka, analysts pointed out.
Despite treasury bills being printed in the recent past without any limit to settle the salaries of the public servants, agreements reached with the International Monetary Fund (IMF) have severely restricted the printing of money.
In the backdrop, the salaries of the public servants are also facing a crisis, and the government’s ongoing efforts to increase the state tax revenue by introducing new tax schemes lead to the question of how long can such operations last as a solution to the economic crisis of Sri Lanka, whilst weighing on tax further aggravates the general public and the public servants alike.
Meanwhile, enrolments at the public service have been suspended and the retiring age being limited to 60 will slash the public service by 25,000 by the end of 2022, official records disclosed.
Nonetheless, enrolments will continue to fill vacancies at certain essential public sectors such as the Medical Sector and the Engineering Sector in order to maintain an uninterrupted service, the GOSL said.
Withstanding the above circumstances, analysts warn that the GOSL will be compelled to slash the salaries of the public servants, hence endless reports being surfaced on Social Media corroborating the claim.
The GOSL, on the other hand, strongly denies the claim, as on one occasion State Minister of Finance Ranjith Siyambalapitiya assured that no decision was taken to slash the salaries of the public servants. Such speculations are being propagated by organised groups to provoke unrest among the general pubic, he added.
MIAP