President’s proposal to increase public sector salaries not an election promise – State Minister

Finance State Minister Ranjith Siyambalapitiya, emphasised that President Ranil Wickremesinghe’s proposal to increase public sector salaries is not merely an election promise. It has received approval from both the Treasury and the Cabinet.

He highlighted that during the peak of the economic crisis, there were suggestions to reduce public servant salaries. However, President Wickremesinghe firmly rejected these proposals, insisting that public servant salaries, being fixed, should not be cut under any circumstances.

Minister Siyambalapitiya made these remarks during a press conference held at President Ranil Wickremesinghe’s political office in Flower Road, Colombo on Wednesday (4). He also noted that, despite Opposition criticism, President Wickremesinghe managed to provide a Rs. 10,000 allowance to public servants during the most challenging economic times.

State Minister Siyambalapitiya stated: “In 2022, when the country faced an economic crisis, there were 1.38 million Government employees, with a total salary bill of Rs. 95 billion. When President Ranil Wickremesinghe was appointed as Finance Minister, the Government was struggling to pay these salaries. Various proposals were considered to address this issue.

One proposal was to cut the salaries of Government employees, but the President firmly rejected it. Instead, salaries were managed for two or three months by splitting payments; ordinary employees received their salaries on the scheduled day, while executive-level employees were paid the following week. Today, some people forget that we went through such challenging times.”

In 2023, during a discussion with the Treasury, President Ranil Wickremesinghe emphasised the need to increase public sector salaries. However, at that time, the Treasury was unable to provide a positive response. President Wickremesinghe consistently pointed out that, amid the on-going economic crisis, public sector employees, who receive a steady income, were among the most affected. As a result, he took the initiative to increase public sector salaries by Rs. 10,000 at the first available opportunity. This decision increased the monthly expenditure of the Treasury by more than Rs. 12 billion. Despite this, President Wickremesinghe believed that this salary increase was still insufficient.

“Additionally, he recognised the issues of Salaries and pension disparities within the public sector and the need to enhance productivity as urgent problems requiring immediate solutions. To address these challenges, President Wickremesinghe appointed a committee chaired by Udaya R. Seneviratne to investigate and propose solutions.

The committee included members such as Jude Nilukshan – Director General of the Department of National Budget, Hiransa Kalutanthri – Director General of the Department of Management Services, S. Aloka Bandara- Director General of Combined Services, H. A. Chandana Kumarasinghe – Director General of Establishments, Dr. Terence Gamini de Silva- retired Deputy Director General of the Ministry of Health, Duminda Hulangamuwa- Chairman of the Ceylon Chamber of Commerce, Chandi H. Dharmaratne- Chief Public Officer of BCS International Technology PTY LTD, Isuru Thilakawardena – Deputy General Manager (Human Resources) of Commercial Bank and G. L. Varnan Perera, Additional Secretary to the President.

It is noteworthy that three out of the ten members of this committee represented the private sector.

The interim report with the committee’s recommendations was presented by President Wickremesinghe to the Cabinet, where 18 of these recommendations were approved.

Many of these recommendations have significant implications for the public sector.

For the base year of 2025, the primary recommendations include raising the Cost of Living allowance for public service employees to Rs.25, 000, increasing the minimum starting monthly salary by 24 percent to 50 percent, and setting the new minimum salary at Rs.55, 000. Additionally, it was advised that these increases be applied across all Government institutions, excluding State-owned businesses and banks. A comprehensive medical insurance plan with a monthly contribution of Rs.1, 000 should also be introduced for all public sector employees and pensioners. Furthermore, it is recommended that pensions be revised by adjusting the salaries of Government officials who retired before 2020. These recommendations are detailed in the 2025 Budget document.

This programme is a Government guarantee, not merely a proposal. The benefits will take effect on January 1, 2025, marking a significant improvement for public servants. Any claims suggesting that these measures are politically motivated are unfounded. It is worth noting that, even in challenging times, the Government has demonstrated its commitment to public servants by providing an allowance of Rs.10, 000.

In response, the SJB has announced an increase in the minimum wage for Government employees to Rs.57, 000, surpassing the proposed Rs.55, 000. This move appears to be a typical political saying. While the NPP’s policy statement does not specify this increase, it does mention that the Cost of Living allowance will be adjusted every six months based on living expenses. This would require submitting a new budget every six months or amending the Appropriation Act. Notably, after we raised the allowance by Rs.10, 000, they pledged an increase of Rs.20, 000, but there has been no further discussion on this promise.

In addition to enhancing employee benefits, we are also focusing on improving the efficiency of Government services and streamlining the recruitment process. This initiative, approved by the Cabinet on August 12, has been formalised into an executive programme. Government employees are encouraged to take advantage of these opportunities for professional development and improved performance.

The post President’s proposal to increase public sector salaries not an election promise – State Minister appeared first on DailyNews.