September 06, Colombo (LNW): Finance State Minister Ranjith Siyambalapitiya emphasized that President Ranil Wickremesinghe’s proposal to increase public sector salaries is not merely an election promise, as it has received approval from both the Treasury and the Cabinet. Speaking at a press conference held at President Wickremesinghe’s political office in Colombo, Minister Siyambalapitiya highlighted that, even during the peak of the economic crisis, the President firmly rejected suggestions to cut public servant salaries, insisting they should not be reduced under any circumstances.
Minister Siyambalapitiya further noted that despite the challenging economic environment, President Wickremesinghe managed to provide a Rs. 10,000 allowance to public servants. He recalled that when President Wickremesinghe took office as Finance Minister, the Government was struggling to pay salaries to its 1.38 million employees, with a total salary bill of Rs. 95 billion. Proposals to cut salaries were firmly rejected by the President, who instead opted for managing salaries by splitting payments.
In 2023, discussions with the Treasury led to the President emphasizing the need to increase public sector salaries, despite initial constraints. President Wickremesinghe later managed to raise public sector salaries by Rs. 10,000, a decision that increased monthly Treasury expenditure by over Rs. 12 billion.
To address salary and pension disparities and enhance productivity, President Wickremesinghe appointed a committee chaired by Udaya R. Seneviratne, which included members from both the public and private sectors. The committee’s interim report with 18 recommendations was presented to and approved by the Cabinet. Key recommendations for 2025 include raising the Cost of Living allowance to Rs. 25,000, increasing the minimum starting salary by 24% to 50%, setting the new minimum salary at Rs. 55,000, and introducing a comprehensive medical insurance plan for public sector employees and pensioners.
These measures, set to take effect on January 1, 2025, aim to significantly improve conditions for public servants. State Minister Siyambalapitiya dismissed claims that these initiatives are politically motivated, stating that the Government’s commitment to public servants has been evident even during challenging times.
The SJB has responded with a proposal to increase the minimum wage for Government employees to Rs. 57,000, while the NPP’s policy statement includes adjustments to the Cost of Living allowance every six months based on living expenses. Meanwhile, the Government continues to focus on enhancing efficiency in public services and streamlining the recruitment process, encouraging employees to take advantage of new professional development opportunities.
