Presidential Expert Committee Submits Final Report on Public Service Salary Increases

Recommendations for Salary and Allowance Increases Effective January 1, 2025.
Implementation to Be Overseen by the Ministry of Finance.
My Expectation is to Increase Everyone’s Income- President.
All Recommendations Align with MoU with the IMF.
Treasury Agreement and Cabinet Approval Secured for Financial Provisions to increase the Salaries.
No Grounds for Doubt Regarding Implementation.
Basic Pay to Increase by 24% to 50%-60%.
Pensioners to Benefit from Salary Increase as Well- Committee Chairman, Udaya R. Seneviratne.

The final report of the Presidential Expert Committee, which includes recommendations for increasing public service salaries and allowances effective January 1, 2025, was presented to President Ranil Wickremesinghe today (03) at the Presidential Secretariat by the Committee Chairman, Udaya R. Seneviratne, along with other committee members.

Chairman Udaya R. Seneviratne stated that the report was prepared in alignment with the conditions outlined in the Memorandum of Understanding (MoU) between the Government of Sri Lanka and the International Monetary Fund (IMF). It was developed with the agreement of the Treasury and the approval of the Cabinet to ensure the necessary financial allocations.

The expert committee on restructuring public sector salaries and allowances was appointed by President Ranil Wickremesinghe on June 12, 2024, with the approval of the Cabinet. The committee comprises 10 members from both the public and private sector.

The committee chaired by former Presidential Secretary Udaya R. Seneviratne included several key members: 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.

The final report, which was to be submitted within three months, presents an 18-point policy outlining the reforms to be implemented in the public service and the proposed salary increases.

Speaking on the occasion, President Ranil Wickremesinghe stated that the committee’s recommendations would be implemented through the Ministry of Finance. He expressed his intention to increase the income of all as outlined in the report’s recommendations.

President Ranil Wickremesinghe further elaborated;

Following the last economic collapse, numerous measures were necessary to boost government revenue. During this challenging time, public sector employees faced significant burdens, yet they continued to perform their duties diligently. As a result, the Gross Domestic Product (GDP) of the country increased in 2023, leading to an improvement in the overall economic situation.

With the funds acquired in 2023, we implemented “Aswesuma” program to assist low-income individuals. As the economy continued to develop in 2024, our focus shifted to restructuring public sector salaries and allowances.

In line with this, the report prepared by Udaya R. Seneviratne and other committee members has been submitted. I intend to act on their recommendations and will forward the report to the Ministry of Finance for further review. This initiative is expected to raise incomes as suggested in the committee’s report. I extend my gratitude to Udaya R. Seneviratne and all the committee members for their work on this report.

Chairman of Presidential Expert Committee, Udaya R. Seneviratne;

An expert committee was appointed on June 12, 2024, with the approval of the Cabinet to oversee the restructuring of salaries and allowances in the public sector. This committee comprised 10 members from both the public and private sectors.

We were instructed to submit the report within three months, and accordingly, the interim report was presented on August 12. In this report, we outlined an 18-point policy for implementing public service reforms and increasing salaries.

Cabinet approval was granted on August 12, allowing us to prepare a comprehensive salary revision for the entire public service, including constitutional boards, corporations, universities, and all governmental departments.

Notably, the basic salary increase ranges from 24% to 50%-60%, starting from a basic salary of Rs.30, 000, with the salary structure revised according to a ratio of 1 to 6.

Accordingly, it was recommended to allocate 50% of the cost of living allowance to public servants and pensioners, ensuring the salary increase benefits nearly 1.5 million government employees and pensioners.

We submitted the final committee report to the Honourable President a week before the three-month deadline, confirming significant relief for all government employees. These recommendations were made after securing the Treasury’s agreement to allocate the necessary financial resources and were aligned with the conditions set by the International Monetary Fund.

Therefore, there is no need for any doubts regarding this. With the Treasury’s agreement and the approval of the Cabinet, the implementation is set to begin on January 1, 2025.

Additionally, we have proposed several other amendments and reforms in the public service. If these reorganizations are properly executed in the coming years, they have the potential to create a highly efficient public service in the country, enabling the state machinery to significantly contribute to the nation’s economic development.