August 15, Colombo (LNW): Due to surpassing the International Monetary Fund’s (IMF) growth forecast, the government plans to raise the Cost of Living index to Rs. 25,000 by implementing a 24 per cent salary hike for public sector employees.
The above announcement was made by Finance State Minister Shehan Semasinghe.
Speaking at a briefing in Anuradhapura yesterday (14), the Minister noted that this decision aligns with President Ranil Wickremesinghe’s commitment to ensuring citizens benefit from the country’s economic improvements.
The IMF initially predicted a 2 per cent growth rate for 2024, but the government reported a more robust 5 per cent growth in the first quarter alone. As a result, the salary adjustments have been incorporated into the forthcoming budget.
The lowest-ranking government employees will see their salaries increased by Rs. 50,000, while their living expenses allowance will rise from Rs. 17,000 to Rs. 25,000.
Semasinghe emphasised that the government’s broader goal is to raise state revenue to 15 per cent of GDP next year, while maintaining fiscal discipline.
The administration aims to transform Sri Lanka into a model of financial management and anti-corruption governance over the next five years under President Wickremesinghe’s leadership.
