Public Sector Salary Reforms in 2025 Budget a Real Possibility
The Sri Lankan government is set to introduce salary increases for public sector employees in the upcoming 2025 budget, based on recommendations from the Udaya R. Seneviratne Committee. The Ministry of Finance has confirmed that the salary adjustments will follow an accepted mechanism aimed at eliminating wage disparities and ensuring fair compensation for employees across different salary scales.
The increase
According to sources, the proposed salary increase will range between Rs. 7,500 and Rs. 10,000, depending on the existing salary levels of employees. The increments will be structured based on salary scales and will be implemented starting in April 2025. The final decision on the exact amount of the increase will be made by the President, who also serves as the Minister of Finance.
Key Recommendations of the Udaya R. Seneviratne Committee
The Presidential Expert Committee, chaired by Udaya R. Seneviratne, has outlined several critical reforms to the public sector salary structure, effective January 1, 2025. These include:
Salary Increases: Lower-grade public service employees will receive a minimum increase of 24%, while higher-grade professionals will see increments ranging from 24% to over 50%. For example, the basic salary for the lowest-grade employees will be raised to Rs. 30,000, leading to a total monthly compensation of Rs. 55,000, including the cost of living allowance
Cost of Living Allowance: A fixed monthly allowance of Rs. 25,000 will be provided to all government employees, remaining unchanged for three years from January 2025
Categorization and Recruitment: Public service positions will be classified into four levels, with sub-categories based on the Sri Lanka Qualifications Framework (SLQF) and the National Vocational Qualification (NVQ). Recruitment will be standardized, with competitive exams and interviews becoming mandatory (Hirunews.lk).
Public Sector Workforce Management: Measures will be implemented to limit the total public sector workforce to one million employees or fewer by 2030
Digitalization Initiatives: A nationwide e-governance initiative will be launched within three years to improve efficiency in the public sector through digitalization and automation
These recommendations have been approved by the Cabinet of Ministers and will be implemented through the Ministry of Finance. The reforms align with conditions outlined in Sri Lanka’s Memorandum of Understanding with the International Monetary Fund
Political Reactions to Salary Reforms
President Anura Kumara Dissanayake has reiterated his commitment to implementing a fair and equitable salary increase for public sector employees while addressing pension disparities. He has assured that these reforms will be reflected in the upcoming budget (Lankaweb.com). Additionally, he had previously pledged to adjust government employees’ salaries every six months in line with the cost of living
Former President Ranil Wickremesinghe, on the other hand, has called for an immediate salary increase for government employees. He stated that funds were allocated during his administration for this purpose and urged the current government not to delay the salary hikes, citing financial struggles faced by the public (Newswire.lk). In response, President Dissanayake dismissed Wickremesinghe’s remarks, arguing that since he is no longer in office, he should not interfere with the current administration’s policies
