Cabinet Spokesperson and Minister Dr. Bandula Gunawardhana clarified the Government’s stance on the ongoing criticism against the proposed massive pay increase for public sector employees during a special media briefing held at the Department of Government Information yesterday (18).

Dr. Gunawardhana emphasised that all public sector employees will receive an allowance of Rs. 25,000 per month for three years. He also highlighted that even the lowest-paid employees will receive a minimum monthly salary of Rs. 55,000 or more.

He explained that the salary increment proposal, approved by the Cabinet, is based on the provisions of the International Monetary Fund (IMF) and will remain unchanged for three years. “Regardless of which Government is in power, the policies proposed by the IMF must be implemented. The proposal to increase salaries was presented for budget approval, and it has already received Cabinet approval. However, certain media outlets have not accurately reported this information,” he noted.

As the Cabinet Spokesperson, Dr. Gunawardhana said he has to correct any misinformation regarding the Government’s decisions on the Cost of Living and salary increases. He also emphasised the importance of maintaining confidentiality regarding Cabinet Papers, noting that they are only shared with Ministry Secretaries. “I act as the Cabinet Spokesperson, and in that capacity, I must clarify any incorrect information that is being spread,” he stated.

Dr. Gunawardhana further explained that a significant misunderstanding has arisen, with many media outlets focusing only on the Rs. 25,000 monthly allowance increase without mentioning the fundamental salary increase. “There was a proposal to increase the basic salary, which has not been adjusted for a long time, by 24% to 35%. When this is combined with the Rs. 25,000 allowance, the lowest grade public sector employees will receive a minimum monthly salary of Rs. 55,000 or more starting from January 2025,” he said.

The Minister also discussed the role of the IMF in providing financial support for the budget during 2025, 2026, and 2027. He stressed that these salary increments and financial provisions are tied to the IMF’s Extended Fund Facility agreement, which must be adhered to by any future Government. “The IMF agreement, which has been signed, outlines that regardless of who holds power, the financial management responsibilities must be followed according to the plan set forth by the IMF,” Dr. Gunawardhana explained.

He added that, if the budget estimates are not properly prepared, Government employees might not receive their salaries, pensions, or other payments. “Without the necessary financial provisions, these payments could be halted,” he warned.

The Minister emphasised that public administration and politics are two different things. He pointed out that the Finance Ministry, under the guidance of the Treasury, is currently preparing the budget estimates, and these must be correctly aligned with the Cabinet-approved proposals. “The budget document must be prepared in accordance with the IMF’s extensive financial management agreement, which includes restrictions on printing money and borrowing freely as in the past,” he explained.

Dr. Gunawardhana stressed that after 2048, Sri Lanka aims to achieve a higher standard of living, with a per capita income exceeding US$ 20,000. He noted that several important laws have been passed to ensure the country reaches this goal, including anti-corruption legislation and financial management laws that future Governments must adhere to.

He concluded by highlighting the importance of understanding and respecting these laws. “Regardless of which party or political ideology one belongs to, everyone who loves this country must speak out to prevent it from falling into the same abyss it faced after gaining independence. We must ensure that the laws passed by Parliament are respected and followed,” he urged.

He specifically mentioned five key laws that are now integral to Sri Lanka’s economic framework. The Central Bank of Sri Lanka Act prohibits the arbitrary printing of money and ensures the independence of the Central Bank. The Public Debt Management Act restricts the Government’s ability to borrow excessively and mandates proper debt management practices. The Fiscal Management (Responsibility) Act enforces strict guidelines for fiscal management, ensuring that the budget is prepared responsibly and sustainably. The Economic Transformation Act sets the direction for the country’s economic policies, and the Anti-Corruption Act is crucial for maintaining the integrity of public administration and ensuring that economic resources are used effectively.

Dr. Gunawardhana invited all political leaders to join in discussions about the important laws and policies that will guide Sri Lanka’s future, emphasising that these discussions are crucial for the country’s stability.