MP Ramanathan Archchuna has publicly shared his Parliament salary slip for March 2026, stating that the public should be aware of the earnings received by Members of Parliament.

According to the document shared by the MP, the gross monthly salary and allowances amounted to Rs. 415,169.93. After deductions totalling Rs. 19,308.71, the net salary credited to his account was Rs. 395,861.22.

The salary breakdown includes a monthly allowance of Rs. 54,285, telephone allowance of Rs. 50,000, transport allowance of Rs. 15,000, office allowance of Rs. 100,000, fuel allowance of Rs. 179,707.93, and sitting allowance of Rs. 15,000, among other payments.

Deductions listed include income tax, house rent, electricity, water, and other charges.

Sharing the document, MP Archchuna said that all Members of Parliament receive similar salaries, but the public may not be aware of the details.

He also urged the public to think carefully before criticising politicians, noting that transparency regarding earnings is important. (Newswire)

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Opposition MP Dayasiri Jayasekara has submitted a private member’s motion in Parliament seeking to prohibit political parties from crediting the salaries, allowances, and vehicle permits of public representatives to party funds.

The motion argues that such practices undermine the independence of elected representatives and pose a serious challenge to democracy.

Jayasekara’s proposal states that Parliament should resolve to disallow any political party from collecting or diverting payments made to Members of Parliament into party accounts.

The move comes amid public discussion following the ruling National People’s Power (NPP) government’s acknowledgement that its MPs contribute their monthly salaries to a common party fund.

Jayasekara, who is also an Attorney-at-Law, described the practice as detrimental to representative freedom and accountability, urging all parties to safeguard the autonomy of parliamentarians. (Newswire)

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Samagi Jana Balawegaya (SJB) MP Jagath Withana has released his parliamentary salary details, citing a commitment to transparency.

Withana shared his salary slips for the months of January through May via a Facebook post. (Newswire)

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The Government has responded to key questions raised by opposition MP Ravi Karunanayake concerning Sri Lankan migrant workers, including on minimum wages and working conditions.

MP Karunanayake had raised the questions from the Minister of Finance under Parliamentary Standing Order 27(2) in May this year.

According to a Parliament statement, the government’s response to the 10 questions is as follows; 

1. What are the Minimum wages currently applicable to Sri Lankan migrant workers in Saudi Arabia, UAE, Qatar and Kuwait?

The Government of Sri Lanka lifted the mandatory minimum monthly wage of USD 300 for migrant workers on 13th September 2021, as part of post-COVID-19 economic recovery efforts and to enhance overseas job opportunities. Therefore, currently there is no imposed minimum wage for migrant workers by the Sri Lankan Government. However, as of 2025, minimum wage provisions for migrant workers in the Middle East vary by country. 

In Qatar, a legally mandated non-discriminatory minimum wage applies to all workers, including domestic workers. It ensures a basic monthly salary of 1,000 Qatari Riyals (approximately USD 275), with additional allowances of 300 QAR for food and 500 QAR for accommodation if not provided by the employer, bringing the total to 1,800 QAR (around USD 494). 

In Kuwait, the minimum wage for private sector workers, including expatriates, is 75 Kuwaiti Dinars (about USD 240) per month. Saudi Arabia does not currently have a legally established minimum wage for migrant workers. In the United Arab Emirates (UAE), there is no specified minimum wage.

The Sri Lanka Bureau of Foreign Employment (SLBFE) and Sri Lankan Missions abroad maintain ongoing engagement with these host countries to monitor wage conditions and advocate for the fair treatment and protection of its workers abroad.

2. Has Sri Lanka signed Bilateral Labour Agreements with Middle Eastern Governments to guarantee fair wages and better working conditions for Sri Lankan workers?

Yes. Sri Lanka has signed Bilateral Labour Agreements and Memoranda of Understanding (MOUs) with key Middle Eastern destination countries to safeguard the rights and welfare of Sri Lankan migrant workers. These agreements are designed to ensure fair wages, decent and safe working conditions, dispute resolution mechanisms and legal protections, particularly for domestic and low-skilled workers.

Through diplomatic engagement and labour diplomacy, Sri Lanka has signed 08 MoUs/labour agreements with key destination countries in the Middle East, including Saudi Arabia, Qatar, the United Arab Emirates, Oman, Israel, Bahrain, Jordan and Kuwait. These agreements typically cover key aspects, including standardized employment contracts, dispute resolution mechanisms, wage protection, access to grievance redress, and regulation of recruitment practices.

In addition, Sri Lanka continues to work closely with host countries to monitor implementation, enhance oversight, and engage in joint committees to review labour conditions. These efforts reflect Sri Lanka’s commitment to protecting its overseas workers and ensuring their dignity and rights are upheld in line with international labour standards.

3. How does the Ministry ensure that Sri Lankan workers receive wages equal or better than workers from Nepal, Bangladesh, and the Philippines in the same industries?

The Government of Sri Lanka, through the Ministry in close coordination with the Sri Lanka Bureau of Foreign Employment (SLBFE) and the Sri Lankan Missions in abroad, takes a comprehensive and diplomatic approach to ensure that Sri Lankan workers in destination countries receive wages and employment conditions equal to or better than those offered to migrant workers from other competiting labour sending countries in the same sectors. This is achieved through regular bilateral engagements and labour cooperation agreement,s and joint committee meetings with relevant countries. These agreements are reviewed whenever necessary to discuss and decide on relevant issues that arise to reflect labour market changes and uphold wage parity across nationalities.

Further, before departure, all Sri Lankan workers undergo mandatory registration and pre-departure training, during which their employment contracts are reviewed to ensure that salary levels comply with legal minimum wage and, where possible, reflect regional benchmarks. The Sri Lankan Missions abroad, supported by labour attachés, actively monitor wage trends and employer compliance, while also addressing grievances, including wage discrepancies, through direct engagement with relevant authorities and employers. In cases where Sri Lankan workers are offered lower wages than their counterparts from other countries despite performing similar roles, the Embassy intervenes diplomatically to resolve such disparities.

The Ministry also collaborates with regional and international platforms such as the Abu Dhabi Dialogue to stay aligned with best practices and policy innovations in labour migration. This multilateral engagement helps ensure that Sri Lankan workers benefit from comparable protections and compensation packages. Moreover, the Ministry enforces strict regulations on recruitment agencies within Sri Lanka to prevent contract manipulation or wage undercutting at the source level. Agencies found to be in violation of fair recruitment standards are subject to disciplinary action.

Overall, Sri Lanka’s strategy is rooted in fairness, transparency, and diplomatic engagement, ensuring that its migrant workers are treated equitably and competitively in the global labour market. Through continuous monitoring, international cooperation, and strong consular support, the Ministry remains fully committed to protecting the rights and welfare of Sri Lankan workers abroad.

However, the wages of migrant workers may vary depending on their skill level, competencies, job performance, and overall attitude.

Further, the SLBFE acknowledges the importance of conducting a wage comparison analysis and is considering initiating a study in collaboration with labour attachés and missions abroad.

4. What specific legal and diplomatic measures has the government taken to prevent wage exploitation, underpayment and contract violations affecting Sri Lankan migrant workers? 

The Sri Lanka Bureau of Foreign Employment (SLBFE) has taken several legal and diplomatic measures to protect Sri Lankan migrant workers from wage exploitation, contract violations, and non-payment of dues by foreign employers.

Specifically, Section 44 of the SLBFE Act No. 21 of 1985 empowers the Bureau to take action against foreign employment agencies and employers who breach employment contracts or fail to fulfil their obligations. The SLBFE may:

• Initiate inquiries and investigations into complaints received from migrant workers
• Take legal proceedings against errant licensed agencies
• Revoke or suspend the licenses of recruitment agencies violating employment conditions
• Recommend blacklisting of foreign employers who exploit Sri Lankan workers

In addition to the above, the SLBFE has established the following mechanisms and interventions:

• Pre-departure contract verification and attestation to ensure terms and wages are in line with host country laws and bilateral agreements.
• Deployment of officers for the Employment and Welfare Sections in Sri Lankan Missions abroad to handle grievances, mediate disputes, and liaise with foreign authorities.
• Collaboration with host country labour ministries and recruitment regulatory bodies to ensure the enforcement of fair labour standards.
• Blacklisting and banning of employers and agencies found guilty of wage-related abuses or contract violations.
• Emergency repatriation assistance and legal aid for victims of wage theft and abuse.

These measures are part of a broader national commitment to protect the rights and dignity of Sri Lankan migrant workers and to ensure fair and safe migration under international labour standards.

5. Given that Qatar has set a minimum wage of $ 494 per month, do Sri Lankan workers receive at least this amount? If not, why?

Yes. Qatar’s Ministry of Administrative Development, Labour and Social Affairs (MADLSA) enforces a minimum wage legislation for migrant workers, established under Law No.17 of 2020 and Ministerial Decision No. 25 of 2020.  Sri Lankan migrant workers in Qatar are entitled to receive the national minimum wage, which was implemented in March 2021. This legislation mandates a basic minimum wage of 1,000 Qatari riyals (approximately $275), along with allowances of 300 QAR for food and 500 QAR for accommodation if these are not provided directly by the employer. This brings the total minimum package (if the employer does not provide food and housing) to 1,800 QAR (around $494) per month. 

This minimum wage applies uniformly to all workers, regardless of nationality or sector, including domestic workers. It reflects Qatar’s broader labour reforms aimed at improving the rights and welfare of migrant workers.

The Sri Lanka Bureau of Foreign Employment (SLBFE), in close coordination with the Sri Lankan Embassy in Doha, continues to monitor compliance with these wage standards to ensure Sri Lankan workers receive their rightful entitlements. While many Sri Lankan workers earn at or above the stipulated minimum. If underpaid, a migrant worker can make complaints.

To address challenges such as delayed payments or unauthorised deductions, the Qatari authorities have introduced key safeguards, including the Workers’ Support and Insurance Fund, which provides compensation for unpaid wages. Both the Sri Lankan and Qatar governments remain engaged in constructive dialogue to strengthen the implementation of labour laws and uphold the rights of Sri Lankan workers through ongoing bilateral cooperation.

6. Filipino domestic workers in Saudi Arabia receive a minimum wage of $ 384 per month. What is the minimum wage for Sri Lankan domestic workers in Saudi Arabia and other Gulf Countries?

There is no uniform minimum wage for Sri Lankan domestic workers in the Gulf region at present. However, in Saudi Arabia, wages typically range from USD 250 to USD 350, depending on the contract and experience. The Philippines currently secures USD 400 for domestic workers due to its strict deployment policies and bilateral protections. Sri Lanka continues to advocate for better wages through diplomatic channels.

7. How does the Ministry monitor wage compliance by employers and recruitment agencies to ensure that Sri Lankan workers are not underpaid or exploited?

The Ministry, in collaboration with the Sri Lanka Bureau of Foreign Employment (SLBFE), employs a multi-tiered monitoring mechanism to ensure wage compliance and protect Sri Lankan workers from underpayment and exploitation abroad.

This includes pre-departure verification of employment contracts to ensure alignment with agreed wage standards and legal requirements. The SLBFE also closely regulates and licenses recruitment agencies, conducts periodic audits, and enforces compliance with ethical recruitment guidelines, digital systems for worker registration and complaint management and post-arrival surveys and exit interviews to capture wage-related feedback.

At the destination level, Sri Lanka’s diplomatic missions play a proactive role in monitoring worker welfare, engaging with host country authorities, and addressing grievances through established labour attachés or welfare officers. Bilateral agreements further strengthen these mechanisms by providing for joint committees and dispute resolution frameworks.

8. Does the Ministry have plans to reintroduce a mandatory wage policy for Sri Lankan workers going abroad, similar to what was there in Sri Lanka in 2016. If so when?

The 2023 revision of the National Policy and Action Plan on Migration for Employment (2023–2027 emphasizes strengthening the protection and welfare of migrant workers. This forward-looking policy framework is grounded in the principles of decent work, protection of rights, and equitable treatment of Sri Lankan workers employed overseas. While the current framework does not include a reintroduced fixed mandatory minimum wage for outbound workers, it places strong emphasis on enhancing governance structures, promoting fair recruitment practices, and improving overall employment conditions in line with international standards.

In this context, the Ministry is giving due consideration to reviewing existing policies, including the potential reintroduction of a minimum wage mechanism for Sri Lankan migrant workers. This process is being approached with careful deliberation, taking into account stakeholder consultations, economic sustainability, and prevailing international practices. The objective is to ensure that any future policy decisions are balanced, evidence-based, and aligned with the overarching goal of safeguarding the dignity and livelihoods of Sri Lankan workers abroad.

9. Can Sri Lanka Foreign Employment Bureau through Sri Lankan recruiting agencies given guidelines to introduce minimum wage requirements to prevent underpayment of workers by employers in the Middle East?

Yes. SLBFE is working on issuing standard wage guideline benchmarks for licensed Sri Lankan recruitment agencies, especially for high-demand occupations, to minimize the risk of wage exploitation in host countries.

10. Will the Minister agree that since we have around 1.7 Million Sri Lankans working in the Middle East, such policy can help to earn a minimum of US Dollars 1.5 billion per year?

Indeed, with approximately 1.3 million Sri Lankan workers in the Middle East, the annual remittance potential is significant. Strengthening wage protection mechanisms and introducing clear wage standards can enhance worker welfare and foreign exchange earnings. The Ministry recognizes this and is actively formulating policy in this regard. (Newswire)

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The Ministry of Labour has issued a statement outlining the salary increments that will be made to private sector employees, starting this year, based on the government’s 2025 budget proposal. 

According to the Labour Ministry, it has been proposed to increase the basic salary from Rs. 21,000 to Rs. 27,000 and the minimum wage from Rs. 700 to Rs. 1080.

As such, the minimum wage of Rs. 21,000 given now for private sector workers is a combination of Rs. 17,500 given under the provisions of the National Minimum Wage of Workers (Amendment) Act, Rs. 1000 under the Budgetary Relief Allowance of Worker Act, No. 36 of 2005 and Rs. 2,500 under the Budgetary Relief Allowance of Workers Act, No. 4 of 2016.

A previously given Rs. 3500 as a budgetary relief allowance will now be added to the minimum wage, which will see an increase in the basic salary and the benefits provided in line with the salary scale.

The Labour Ministry further said that the government has proposed an increment of Rs. 27,000 to basic salary this year, while next year it hopes to grant an increment of Rs. 30,000 and also hopes to increase the minimum wage from Rs. 1080 to 1200. 

Stating that the Cabinet’s approval has been received in this regard, the Labour Ministry added that the necessary bill in this regard will be presented to Parliament soon. (Newswire)

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As a single mother raising a teenage boy in southern China, a 1,500 yuan ($330) monthly wage cut has hit Ms Wei hard.

“I could save 1,000 yuan every month in the past, but now I have to use my savings to pay [part of] my mortgage,” said Ms Wei, who didn’t want to use her full name for privacy reasons.

Ms Wei said she only has enough savings to supplement her mortgage payments for the next two to three months.

As an accountant in China, Ms Wei works in the finance sector where the government has been cutting and capping workers’ pay.

China’s financial sector is led by state-owned banks and institutions, which are ultimately controlled by the government.

Ms Wei’s monthly salary has been reduced from 6,000 yuan to 4,500 yuan and her year-end bonus slashed by more than half.

“They [the government] started to cut everyone’s salary last July. It’s a heavy blow to my life,” Ms Wei said.

While her wage started shrinking six months ago, late in January Chinese authorities announced a new round of finance sector pay cuts to “reduce costs and increase efficiency”.

On Chinese social media, there have also been complaints of pay cuts from people working for government-related employers in the construction, engineering, and media sectors.

But with no announcements from authorities about salary reductions in those industries, the scale of the impact remains unclear.

At the same time, China’s government has increased the wages of public service workers.

Experts say one of main reasons the government is controlling people’s incomes in different industries is to reduce inequality in Chinese society.

‘I can barely make a living’

In the new round of finance sector wage reductions announced in January, Chinese authorities said no employee working in a state-owned financial institution could be paid more than a total annual package of 973,000 yuan.

The annual average income for finance sector workers is higher than other industries — finance wages are reportedly 2.35 times that of wages in China’s manufacturing industry.

“Overall, Chinese companies haven’t been doing well recently, but people in the finance industry still enjoy a relatively high income,” explained Shi He-Ling, a Monash University economics professor.

Professor Shi said the government was trying to intervene and redistribute the income to public service workers and it was unlikely people’s individual circumstances would be considered before a salary was slashed.

That appeared to be the case for Gaia Wang, who, when she found out her salary would be cut by 1,500 yuan a month, called her mum crying.

“I can barely make a living,” said Ms Wang, who lives in south-west China.

Ms Wang works for an investment firm in the finance sector.

Her monthly salary was 6,500 yuan but dropped to 5,000 yuan in February.

While she is still coming to terms with how the salary reduction will impact her life, her mental health has deteriorated and she’s unsure how she’ll continue to afford living costs.

“The salary was comparatively low [to other finance sector workers] but I’m early in my career and used to find it OK living in Chengdu,” she explained.

Pay rise for public service

The painful news of her pay cut compounded after a surprise revelation during the phone call with her mum.

Ms Wang says she doesn’t know exactly why her mum, who is a public servant, got a pay rise.

China raised government workers’ salaries across the country for the first time in years in January by at least 500 yuan a month.

Chinese authorities didn’t publicly acknowledged the pay rise, nor did they say explain why they made the decision.

While some media reported the hike was intended to boost domestic consumption, Professor Shi suggested there could be multiple motives.

“There could be both economic and political reasons,” he said.

He pointed out that most public servants were property owners and the government wanted to keep them happy.

China’s property prices have dropped about 30 per cent since they peaked in 2021.

Falling property prices were likely leading to shrinking wealth among government workers, Professor Shi said.

“They [government workers] lay the foundation for the government’s management. China relies on them for keeping their governance stable.”

Professor Shi said he believed the wage policies would have unintended impacts, like forcing talented workers to take up other jobs.

In 2024 alone, more than 10,000 people left the securities industry, according to local media.

Ms Wang is among those considering quitting the finance sector.

While she works at the investment firm, she is studying law and preparing to sit the bar exams.

“I used to make one-year plans, three-year plans and five-year job plans, but now I’m just investing more time on myself,” Ms Wang said.

For Ms Wei, the challenges of raising a school-aged son meant she desperately wanted to spend more time with her family.

But with so many people leaving the finance sector, the prospect of finding a new job concerns Ms Wei.

“What I’m worried about is that if I quit, I could end up with a worse job,” she said.

“The economy is so bad and the competition [for work] is brutal.” (ABC)

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The government will take steps to establish a separate salary structure for the Police Department in next year’s budget, Minister of Public Security Ananda Wijepala said. 

Addressing the Parliament today, Minister Wijepala informed that the government has, however, taken steps to increase the salaries of Police Officers this year.

Briefing the Parliament on the current salary hike, the minister said the basic salary of a Police Constable, which is Rs. 29,540, will be increased to Rs. 44,293 this year.

He further outlined the following salary increments for various ranks in the Police Force;

• Police Constable: Rs. 6,182 increase
• Police Sergeant: Rs. 6,441.54 increase
• Sub-Inspector (SI): Rs. 6,551.72 increase
• Inspector (IP): Rs. 7,040.24 increase
• Chief Inspector (CI): Rs. 7,655.74 increase
• Assistant Superintendent of Police (ASP): Rs. 8,244.11 increase
• Superintendent of Police (SP) and Senior Superintendent of Police (SSP): Rs. 9,925 increase
• Deputy Inspector General (DIG) and Senior DIG: Rs. 11,118 increase
• Inspector General of Police (IGP): Rs. 13,223 increase (Newswire)

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Education Minister and Prime Minister Harini Amarasuriya has refuted criticism by some opposition MPs that the government has failed to raise the salaries of teachers of the top 10 ranks in the salary grade, as previously promised.

Addressing the Parliament today, PM Harini Amarasuriya said that was not the case, revealing that the salaries of principals and teachers have been raised.

“The salary of principals has been increased by Rs. 30,105 and the salary of teachers by Rs. 25,360. Accordingly, principals are placed in the 7th rank and teachers in the 8th rank among the salary grades,” she added. (Newswire)

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A group of workers employed at the Colombo Port City have staged a protest, claiming that their salaries have not been paid over the last nine months.

Holding placards, the workers engaged in a silent protest inside the premises of the Colombo Port City yesterday.

The protesters alleged that the company under which they were employed had not paid them in months.

“They keep saying they will pay us today or tomorrow. They have not paid us in over 08 to 09 months. How do we pay our staff? How do we feed our families? We want an immediate solution to this issue,” the employees told the media. 

The protesters revealed that salaries have not been paid to between 300 to 400 employees of various companies working at the Colombo Port City. (Newswire)

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Former President Ranil Wickremesinghe has questioned if Prime Minister Harini Amarasuriya did not know Sri Lanka’s Constitution, pointing out that the Cabinet of Ministers does not require the approval of state officials to make decisions. 

Addressing an event, the former President questioned PM Amarasuriya’s recent statement regarding his Cabinet’s decision to increase public servant salaries, which she claimed had not followed the necessary procedures.

“PM Harini Amarasuriya says that the approvals of officials from the Treasury and Finance Ministry had not been obtained to increase public servant salaries. She says that the approval of officials is important for the Cabinet to function. From where did you learn the Constitution?” he questioned.

The former President pointed out that the Cabinet governs the nation and in no place in the Constitution does it mention priority to officials. 

“If you want to know about the Constitution, let me know I will assist you, if not I can also inform our former Prime Minister,” he added. 

Ranil Wickremesinghe revealed that his proposal had been signed by several officials from relevant departments, such as former Presidential Secretary Udaya Seneviratne, Director of the Budget Office Jude Nilukshan, Director General of Combined Services S. Aloka Bandara, Director General of Institutions H. A. Chandana Kumarasinghe, as well as the Chairman of the Ceylon Chamber of Commerce and currently Advisor to the President Duminda Hulangamuwa. 

Displaying a document with the mentioned signatures of officials, the former President questioned what the Prime Minister meant by the former government not having obtained the approval of relevant officials.

Ranil Wickremesinghe added that this was why it was essential for seasoned politicians to be in Parliament, as the nation cannot be run by amateurs. (Newswire)

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Former Minister Kanchana Wijesekera alleges that the recent statement made by Prime Minister Harini Amarasuriya on the former government’s proposal related to state sector salaries was false and misleading.

Taking to ‘X’, Kanchana Wijesekera said that the previous government of Ranil Wickremesinghe took all the necessary steps per the procedures to approve the salary increments for state sector employees from January 2025. 

“The approval of the Cabinet was granted to appoint a committee and to evaluate the state sector and the salary increments in May 2024. The committee met with trade unions and stakeholders to discuss the state sector issues. The committee recommendations were handed over to the President and were presented to the cabinet and approved in August 2024,” he said. 

The former minister further said that in August 2024, the Cabinet approved the incorporation of the recommendations in the 2025 Budget proposals and to allocate the necessary funds. 

Kanchana Wijesekera revealed that the committee comprised officials from the Treasury, Budget Department, Management Services and other necessary stakeholders. 

His comments come in response to PM Harini Amarasuriya’s recent claims that former President Ranil Wickremesinghe had announced a Cabinet decision to increase public servant salaries, but the necessary procedures to implement this decision were not followed.

“Although Ranil Wickremesinghe claims that a decision was taken to raise the salaries of public servants, when reviewing this Cabinet decision, it’s evident that it was not approved with consent from the Treasury or officials from the Ministry of Finance. A decision was announced, but the necessary actions to implement it were not taken. So, what does that mean? It clearly indicates a false promise given during the election period to mislead the public,” the Premier said while speaking at a public gathering in Padukka earlier this week. (Newswire)

The statement made by Prime Minister @Dr_HariniA is false and misleading on the state sector salary’s.

The previous Govt of @RW_SRILANKA took all the necessary steps in accordance with the procedures to approve the salary increments for the state sector employees from January… pic.twitter.com/ek64gXM4cM

— Kanchana Wijesekera (@kanchana_wij) October 29, 2024

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Former President Ranil Wickremesinghe says that the legal Cabinet decision taken by him as Finance Minister to increase the salaries of public servants should be implemented immediately.

The former President said that if he had won the presidential election, he had planned to give the salary increase from next January, and if he could not give the salary increase, the government should immediately reveal where the money allocated for it is. 

Former President Ranil Wickremesinghe made the remarks during a special discussion held today (Oct 23) with representatives of the State Employees Trade Unions. The discussion was held at the New Democratic Front office in Colombo.

The full statement of former President Ranil Wickremesinghe; 

I thought I would clarify the facts about the legality of our government increasing the salaries of public servants.  If we explain the cabinet decision we have taken to increase the salaries of public servants, we have done that work under Article 43 of the Constitution. We made the salary increase after considering the requests received from all public servants.

The demand for a salary increase is reasonable. By the year 2022, the value of people’s wages had decreased by fifty percent. They lived hard. They had to go into debt. Some people had to sell their property. In the early days when I took over, they were not in a position to give relief. I announced it to the country. Some asked to increase their salary by twenty thousand. 

In 2024, I increased the wages by ten thousand rupees. But that ten thousand rupees was not enough. When the value of money decreases by fifty percent, people will have problems. There are times when some children come to school without breakfast. Children in many families stopped attending tuition classes. Good or bad we need tuition classes today. I did not want these social systems to collapse. Accordingly, the Udaya Seneviratne Committee was appointed to look into the increase in government employee salaries. They were given three months to make a decision. But the committee gave the report before that. I asked the committee chairman Udaya Seneviratne about it. He also mentioned that since this is a big problem, it should be addressed.

I asked how much money would be spent on increasing the respective wages. When I asked the Treasury Secretary if he was able to give the amount he said that it was not possible to give that amount. The Treasury Secretary also informed us that our budget will not be able to support this amount. I told Udaya Seneviratne to inform me about the matter. I also told them to discuss with the President’s Secretary and find out how to increase the relevant salaries.

Later, they informed me that they had discussed and reached an agreement and that it was possible to give fifty percent in one year and the remaining fifty in the other year without giving the salary increase all at once. At that time, I first discussed with Saman Ekanayake who was my secretary.  I also discussed with my economic advisor Dr. Samaratunga and Finance Ministry Secretary Mahinda Siriwardena. In the end, we came to an agreement to give this salary increase. Even if we increase the wages as agreed, we will not be able to cover the disadvantage of the decrease in the value of the currency. But we knew that this decision would bring some significant relief. 

Accordingly, I presented the cabinet paper on increasing the remuneration of public servants. I signed that cabinet document as the president. Accordingly, this decision does not require comments from the Treasury.  The Cabinet can take any decision. We now generally operate according to the UK Cabinet Manual. 

It is stated that it is assigned to the Chairman of the Council of Ministers to summarize what the collective decision is and it is prescribed by the Secretariat of the Council of Ministers in notes. That means we don’t ask for votes to make a decision. The decision will be announced by the Chairman of the Cabinet.  It is mentioned in section 4:3. We have reported that decision. Article 4:7 states that it is for the incumbent Government to determine the specific arrangements for collective decision-making.

Sometimes we make decisions without papers. Opinions against the views of the minister in charge of the subject are obtained. I don’t think that my friend Vijitha Herath has been in a cabinet before. The decision taken by our government to increase the salaries of public servants is completely legal. A ministry is an organization. The organization has no laws. The ministry is headed by the minister under section 52 of the constitution. The Ministry is run by the Secretary under the order of the Minister.

As the Minister of Finance, sometimes when papers are sent to the Cabinet according to the Ministry’s proposals, I sometimes agree and sign them. If I do not agree with certain papers, I will give my opinion. As the President, when I sign the relevant salary increase resolution, I am not only signing as the President, I also do so as the minister of all ministries belonging to the President.

I presented this salary increase as the Finance Minister. When signing the relevant paper as the President, there is no need to submit letterheads as the Ministry of Finance again. It is legal to sign as the President. Accordingly, the relevant government employee salary increase should be paid. We can provide that salary increase. We have approved this salary increase only after due consideration. 

There is another matter that I have considered while giving this salary increase, which is the fact that we need to increase our state income from twelve percent to thirteen percent by next year. I have accordingly approved this salary increase. There is money to provide the relevant wage increase. If they say that there is no money, that is a strange story. The government should explain where the money to increase salaries is. 

Do not postpone this salary increase. Because the people are not able to live. If you can’t fulfil the promises made by the NPP, then fulfil the promises made by us. This government employee salary increase should be implemented in January. My idea was to pass this salary increase in December or the first two weeks of January, if I won the presidential election, and pay the salary at the end of January. Don’t try to delay this salary increase now. People should have money in hand to celebrate the New Year. 

This salary increase is legal. Now the civil servants have to take this fight forward. This battle is now in your hands. (Newswire)  

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The Cabinet has approved a basic salary increase for all public servants from January 2025, the Expert Committee on Public Service Salary Disparities announced today. 

According to the President’s Media Division (PMD), Chairman of the Committee Udaya Seneviratna said the salary increase ranges from 24% for lower grades and 24% – 50% for higher positions.

Udaya Seneviratna further said the salary increments will be based on qualifications, experience, and current roles. (Newswire) 

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The Planters’ Association of Ceylon has strongly opposed the government’s wage hike of Rs. 1700 for plantation sector workers.

Issuing a statement, the Association said the plantation industry has raised its strongest possible objections to the Government’s arbitrary, reckless, unilateral decision to drastically hike minimum wages for tea and rubber sector workers by an unprecedented 70%. 

All producer stakeholders issued a unified warning against the devastating impact the latest increase will have on the plantation sector, leading crippling operational challenges, and ultimately leading to severe economic instability for the nation.

“This decision was made without proper consultation or consideration of the needs of all industry stakeholders. In particular, it fails to provide any consideration and threatens to cripple every segment of the Sri Lankan tea and rubber industry. This current effort to force such a clearly unsustainable mandatory minimum wage on tea and rubber smallholders and the Regional Plantation Companies (RPCS) is impossible for the industry to absorb, even with radical cuts to basic operational necessities. The continuity of the entire plantation sector is now at risk, and most critically the livelihoods of the very workers and communities who are connected to the industry across Sri Lanka,” The Planters’ Association of Ceylon stated.  

The Association points out that as a result of the decision, the cost of production for tea and rubber is set to rise dramatically, with estimates indicating a minimum 45% increase in the cost per kilogram of tea. This surge in operational costs will render Sri Lanka’s tea and rubber industries uncompetitive in the global market, further exacerbating the financial strain on these sectors.

Additionally, the wage hike will place an enormous burden on Regional Plantation Companies (RPCs), which will face an annual increase in excess of Rs. 35 billion inclusive of EPF/ETF and gratuity payments. This financial strain is unsustainable and threatens the livelihoods of thousands of workers in the plantation sector.

The Planters’ Association of Ceylon also noted that the current approach of the Government in attempting to coercively set wages for the private sector, and interfere in the management of the sector from key Government figures represents a stark violation of the terms of the IMF agreement, which is crucial for Sri Lanka’s economic recovery. This decision is very clearly driven by short-term populist politics aimed at securing electoral victories rather than fostering the long-term economic health of the industry, and securing the interests of workers. 

The IMF’s $3 billion Extended Fund Facility (EFF) for Sri Lanka is contingent on several stringent conditions aimed at ensuring fiscal consolidation including reduced intervention in state-owned enterprises (SOE). Historically, state control over enterprises has led to inefficiencies and financial burdens, as evidenced by the failures of numerous state-run businesses in Sri Lanka.

Historically, the state has consistently failed to manage State-Owned Enterprises (SOEs) effectively, leading to steep losses and in many instances, near-total collapse. By the time of privatization in 1992, state-owned plantations made continuous losses that had to be heavily subsidized by the Government up to Rs. 5 billion per year which was borne by the Treasury. 

A further Rs. 8 billion was owed by the JEDB and SLSPC to the Bank of Ceylon and Peoples’ Bank as a result of a US$ 300 million lending facility which was extended to the state plantations by the World Bank. While these funds were intended for the improvement of the plantation industry, there were no significant improvements and the plantations did not have the ability to repay the debts, and the Government was eventually compelled to absorb this debt.  

Following privatization, worker wages appreciated sharply, and with a significantly larger workforce of 327,123 within the RPC sector, the industry was able to operate more effectively, investing substantially towards the development of the industry, including all of the key certifications and standards that have allowed Pure Ceylon Tea and rubber to maintain a reputation for unmatched quality relative to global competitors.  

These efforts have led to improvements in efficiency and productivity, which are now at risk due to the proposed wage hike. It is also important to note that all these companies are publicly traded companies listed on the Colombo Stock Exchange. Any attempt at a second and immediate expropriation by the Government will therefore contravene Securities and Exchange Commission and SEC rules, the Companies Act and other related statutory provisions. 

Stating that such an arbitrary and impractical decision also risks severe damage to local and foreign investor confidence alike, The Planters’ Association of Ceylon warned that this would have negative consequences beyond the plantation industry, especially at a time when Sri Lanka desperately requires foreign direct investment to help boost strategically important sectors in manufacturing and services, as well as the agriculture sector. 

The Planters’ Association of Ceylon has long advocated for a shift to a productivity-linked wage model or a revenue share model, which aligns worker compensation with productivity and revenue earned at auction. This approach not only incentivizes productivity but also ensures a fair and sustainable wage system for workers. Already workers under revenue share under the previous wage structure recorded earnings in excess of the minimum wage that was recently gazette. 

The current daily attendance-based minimum wage model is outdated and does not reflect the realities of the modern plantation industry. Any disruption to production or quality standards could send shockwaves through export markets, diminishing export revenues and competitiveness. 

“We urge policymakers to prioritize long-term economic stability over short-sighted decisions and to consider the industry’s proposals for a productivity-linked wage model,” The Planters’ Association of Ceylon said. (Newswire)

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Wages offered to Chinese workers in major cities declined by the most on record, underscoring persisting deflationary pressures and sluggish consumer confidence in the world’s second-largest economy.

Average salaries offered by companies to new hires in 38 key Chinese cities fell 1.3 per cent to 10,420 yuan (S$1,950) in the fourth quarter of 2023 from a year ago.

This was the worst drop since at least 2016, according to data from online recruitment platform Zhaopin compiled by Bloomberg.

It was also the third straight quarter of decline, the longest run since data on yearly changes was first available in 2016.

In Beijing, the wages decreased 2.7 per cent from a year ago in the fourth consecutive quarter of contraction. Salaries in the southern metropolis of Guangzhou fell 4.5 per cent.

The data highlights the mounting deflation risks faced by China going into 2024, which weigh on its growth outlook.

A gloomy job market means residents could pare back their spending, adding to downward pressure on consumer prices that are already falling at the steepest pace in three years.

It also bodes ill for the property market, which is extending its worst slump in history. With an uncertain income outlook, households could continue to delay their home purchases and avoid taking out mortgages.

China has seen widespread salary cuts in various sectors, including technology and finance, and among local government workers, a result of regulatory crackdowns and strained public finances.

Beyond that, companies are also under pressure from weak domestic and overseas demand for their products.

Entry-level salaries have been falling in the so-called new-economy sectors, including electric vehicles, batteries, and solar and wind power. The average salary fell 2.3 per cent to 13,758 yuan in December from a year earlier, according to data from a private survey by Caixin Insight Group and Business Big Data.

A breakdown of the official jobless rate shows that more than one in five young people could not find a job as at June, before the statistics authorities stopped publishing the numbers.

That was in part due to companies’ increasing preference for experienced workers, who appear to have accepted lower wages and longer working hours due to concern over their job prospects.

The government says it is ironing out complexities in the jobless data.

A consumer confidence index compiled by China’s National Bureau of Statistics shows that sentiment hovered around a historical low as at November, the most recent month for which data is available.

The index takes into account residents’ assessment of their income, employment and willingness to spend.

It shows confidence is yet to improve from the levels seen in 2022, when lockdowns due to Covid-19 were still in place. (Bloomberg)

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Minister of Power and Energy Kanchana Wijesekera has instructed the Ceylon Electricity Board (CEB) not to pay bonuses, incentives or salary increments for CEB employees for the year 2023.

In a letter addressed to the CEB officials, the minister also requested to discontinue the 25% salary increment paid every three years, for this year as well. 

Minister Kanchana Wijesekera has issued the directives in a bid to reduce the cost of operations and administration. (NewsWire)

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President Ranil Wickremesinghe has launched an official initiative to bolster both the 1.6 million public sector employees and the 8 million private sector employees, with a focus on advancing the nation’s economic well-being, MP Wajira Abeywardena said.

He said President Ranil Wickremesinghe plans to increase the salaries of 1.6 million government employees in this year’s budget, with similar adjustments in the private sector. 

“President Wickremesinghe’s formal program aims to fortify both the public and private sectors, which together employ millions of individuals,” the MP said.

MP Abeywardena articulated the importance of fostering unity and supporting the country’s comprehensive development program. 

He underscored the potential benefits of this program, emphasizing that its success, under President Wickremesinghe’s leadership, can lead to future reductions in the prices of essential commodities such as electricity, gas and fuel, ultimately contributing to a more prosperous and stable economy for the citizens.

MP Wajira Abeywardena expressed these views while addressing a media briefing held at the Presidential Media Centre (PMC) on Tuesday (Nov 07). 

Providing a more in-depth analysis of the nation’s economic trajectory, the MP emphasized that aligning the state’s budget with its financial apparatus should primarily address the path to recovery for a country that had faced bankruptcy. 

He pointed out that the economic crisis had intensified after a regime change in 2019, marked by a shift in tax policy that led to a rapid erosion of government revenue. In response, the government resorted to printing money through the central bank, leading to a surge in inflation.

“The nation’s economy suffered a significant setback and ultimately declared bankruptcy, but President Ranil Wickremesinghe assumed leadership and garnered the trust of crucial stakeholders, including international financial institutions such as the International Monetary Fund (IMF), the World Bank (WB) and the Asian Development Bank (ADB). Consequently, the country’s economic revival is well underway.

“President Wickremesinghe’s prior role as Prime Minister from 2001 to 2003 played a pivotal role in rebuilding the nation. However, this era came to an end on April 10, 2004, and by 2014, the country was once again on the brink of financial collapse. The subsequent economic recovery took place in 2015 under his leadership, with government employees receiving substantial salary increases and both the public and private sectors being reinforced to establish the essential foundations for economic stability. Regrettably, in 2020, the government that implemented these reforms was overthrown by a coalition of government employees and the public, resulting in a period of instability,” the MP pointed out.

Against the backdrop of the nation’s ongoing economic crisis and its successful efforts to navigate this challenge, MP Abeywardena cautioned against initiating strikes, stating that such actions, often accompanied by demonstrations and slogans, can harm the nation’s international reputation and deter potential tourists. 

In light of the present situation, MP Abeywardena stressed the necessity for government trade unions to adopt new and more effective strategies rather than relying on traditional strike practices, as these may not yield the desired results.

“Significant changes have already been introduced through new rules and regulations, addressing existing deficiencies, strengthening various sectors and responding to the demands of the public. Additionally, steps are being taken to ensure that political parties refrain from making unwarranted promises. President Ranil Wickremesinghe has also announced plans to increase the salaries of 1.6 million government employees in this year’s budget, with similar adjustments in the private sector. President Wickremesinghe’s formal program aims to fortify both the public and private sectors, which together employ millions of individuals. The success of this program is expected to result in a tangible reduction in the prices of essential commodities, including electricity, gas and fuel, fostering a more stable and comfortable economic environment for the population.

“In light of the severe economic crisis facing the nation, the call to action is for the public sector and the entire population to comprehend the present situation and wholeheartedly engage in the nation’s development over the next 5 to 10 years. It’s worth noting that the current government is taking measures to safeguard the functioning of the entire state machinery. President Wickremesinghe has outlined plans to attract 10 million tourists in the coming year as a means to alleviate the substantial debt burden. To achieve this goal, efforts are underway to enhance facilities for tourists and demonstrate political stability,” the MP said.

MP Abeywardena revealed that in a forward-looking move, President Wickremesinghe has established a “National Council” in the Parliament, providing a platform for all individuals to present national concerns and encouraging a more inclusive and innovative approach to politics. 

“This signals a departure from conventional political methods, emphasizing the need for fresh ideas and approaches to address the nation’s challenges. All political parties and civil society groups are invited to submit their proposals in addition to the existing program,” he added. (NewsWire)

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The government of Pakistan has again stopped the salaries of Pakistani diplomats working in different missions/embassies abroad amid ongoing fiscal crunch.

Sources said that the government did not deposit the salaries to Pakistani diplomats for the last two months adding that Even some of the diplomats spent the Eid-ul- Fitr without getting the salary.

Schools may expel children of diplomatic staff for non-payment of fees, sources added.

The Finance ministry in December 2022 claimed that it had released funds (Salaries of Pakistani diplomats or other staff ) for the third quarter of current fiscal year however diplomats and other staff did not receive March salaries.

Sources said that Foreign Office had transferred the salaries from its budget in January or February to  Commerce and Trade as well as Press Attaches working abroad but now the MoFA asked officers to ask relevant ministries to release salaries from their budget.

Sources said that Every department including Foreign Office allocates funds for its employees working abroad during the annual budget and the foreign office on the 1st or 2nd of every month deposits salary into officers/staff accounts.

The Finance minister Ishaq Dar in December was also annoyed in a meeting when it emerged that the government is yet to pay salaries to diplomatic or other staff.

Sources said that the Economic Coordination Committee may take up this matter again as this forum can direct the State Bank of Pakistan for provision of foreign exchange for this purpose.

The scribe asked Secretary Finance for comments but no reply was received till finalization of story. (Pakistan Today)

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The Government is looking at the possibility of increasing some of the salaries of State employees in the last quarter, United National Party (UNP) General Secretary Palitha Range Bandara stated.

Addressing the media yesterday (May 07), Range Bandara stated that the public will benefit if they are able to reach close to the target expected by the government.

“Sri Lanka has now overcome bankruptcy. The public has received all the benefits from this,” he said.

The UNP General Secretary further said that the President has promised that while reviving the economy it is expected to increase the salaries of the public sector in the last quarter.

“This is why measures are being taken to collect money and increase revenue. If the government is able to achieve the expected target, then state-sector employees will receive the benefits,” he added. (NewsWire)

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