Government clarifies controversial Public Sector pay hike amidst growing criticism

Date:

August 19, Colombo (LNW): Cabinet Spokesperson and Minister Dr. Bandula Gunawardhana addressed concerns over the proposed public sector salary increase, clarifying key points during a special media briefing on 18 August.

He emphasised that all public employees will receive an additional Rs. 25,000 monthly allowance for three years, alongside significant base salary adjustments.

Dr. Gunawardhana explained that the salary increments are part of an International Monetary Fund (IMF) mandate and will remain consistent, regardless of which Government is in power.

Media reports have focused narrowly on the allowance increase, overlooking the broader salary adjustment, he noted. Public sector employees will see a minimum monthly income of Rs. 55,000 or more from January 2025.

The Minister underscored that the IMF’s Extended Fund Facility agreement is binding on future administrations and essential for budgetary support until 2027.

Failure to comply with these financial provisions could result in delayed payments of salaries, pensions, and other entitlements. He urged the importance of adhering to the new fiscal management laws to prevent repeating past economic failures.

The Minister highlighted the crucial laws now shaping Sri Lanka’s economic future, including the Central Bank Act, Public Debt Management Act, Fiscal Responsibility Act, Economic Transformation Act, and Anti-Corruption Act.

These laws are designed to stabilise the economy by restricting money printing, regulating debt, and enforcing responsible fiscal management.

Dr. Gunawardhana called on all political leaders to engage in discussions about the economic framework that will guide the nation’s future.

He emphasised that cooperation across political divides is vital to achieving long-term prosperity and avoiding past economic pitfalls.

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