No funds allocated for public sector pay rise: Govt responds to misleading reports

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By: Isuru Parakrama

October 29, Colombo (LNW): Cabinet Spokesman and Minister Vijitha Herath announced that there are no funds currently available to implement salary increases for public sector employees, in stark contrast to the claims made by the former administration.

The statement followed a report by Mr. Udaya R. Seneviratne, revealing that since January, no budgetary provision has been made to support any salary increments.

Minister Herath acknowledged that while the Cabinet can set policy directions, there is currently no fiscal route to support salary increases.

Former President Ranil Wickremesinghe on a previous occasion condemned the current administration for not releasing adequate funds for the expected increment for public sector salaries. He demanded that the NPP-led regime should clarify as to what happened to the allocated funds, had the government decided to not act on the proposal.

Prime Minister (Dr.) Harini Amarasuriya slammed the former President’s comments, emphasising that despite the previous administration’s announcement of making such an increase, no approval has been granted by either the Treasury to date, nor had there been any allocation of funds for the purpose, deeming it an election promise of exploitive nature made by Wickremesighe ahead of the 2024 Presidential Polls.

In early 2024, a directive was issued to adjust public sector allowances and pensions. However, Herath addressing today’s post-Cabinet briefing clarified that for the time being, financial relief is limited to an interim payment of Rs. 5,000 per month, which will continue until March 2025.

This arrangement leaves the long-promised pay rise uncertain.

“The public was misled regarding these commitments,” Herath said, and pledged that his government would prioritise transparency.

Whilst reaffirming the Cabinet’s dedication to fulfilling salary promises, he noted that any substantial increase would be only realistic from 2025 onwards.

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