Thursday September 26, 2019 06:43:59
ECONOMYNEXT – Sri Lanka will spend up to 120 billion rupees a year in salary hikes to clear ‘anomalies’ with the half the hikes being implemented from beginning from January 2021, officials said.
Finance Minister Mangala Samaraweera said 50 percent of the hike will be given from January 01.
A salaries commission S Rannugge appointed by President Maithripala Sirisena, had recommended changes to hike salaries to clear anomalies which may cost around 115 to 120 billion rupees, Treasury Secretary R H S Samaratunga said.
Half to the hike was to be given from July 2020 and the other from the following January.
But the cabinet of ministers had decided to bring it forward the first increment to January 2020.
Samaratunga said Sri Lanka was spending about 750 billon rupees a year on salaries and another 225 billion rupees on pensions.
From 2015 Sri Lanka went on an illiberal policy of ‘revenue based fiscal consolidation’ backed by the International Monetary Fund, throwing away the classical economic principle expenditure control of the state.