The Hon. Chandana Sooriyaarachchi

¶ 01 Hon. Presiding Member, during this debate on the Heads of the Ministries of Public Administration, Provincial Councils and Local Government, and Labour, we as the Government have several special points to present. Since 2001, for decades, as a trade union leader who fought on the streets for the rights of working people to secure a decent wage and life, I now represent the Government in Parliament for the first time.

¶ 02 This Budget proposes measures to modernize the public service and deliver a more efficient service to the public, with the required financial provisions for the first year of the NPP Government’s five-year program “A Prosperous Country — A Better Life,” covering the next eight months of the fiscal year.

¶ 03 As a trade unionist who for decades fought to increase the basic salary of working people — rather than win mere allowances — I know that strengthening the basic salary benefits public servants most because all other allowances and benefits are tied to it. President Anura Dissanayake, presenting the Budget, proposed to increase the basic salary of working people and public servants — not because of a demand but of our own initiative. Under our proposal, public servants’ annual increment value increases by 80 percent. In the very first Budget of the NPP Government, we could grant this relief — a reciprocation for the mandate given by working people.

¶ 04 Let me table a few figures by grade to clarify. As at 31.03.2024, an unskilled, primary-level worker’s basic salary is Rs. 24,250 with an increment of Rs. 250. From April, basic rises to Rs. 40,000 and the increment from Rs. 250 to Rs. 450. A semi-skilled worker’s basic rises from Rs. 25,250 to Rs. 41,800; increment from Rs. 270 to Rs. 490. A primary skilled worker’s basic rises from Rs. 25,790 to Rs. 42,780; increment from Rs. 270 to Rs. 490.

¶ 05 Management Service Class I basic rises from Rs. 27,140 to Rs. 45,230; increment from Rs. 300 to Rs. 540. Management Service Class II basic rises from Rs. 28,940 to Rs. 48,470; increment from Rs. 300 to Rs. 540. Degree holders in allied services including Development Officers rise from Rs. 31,490 to Rs. 53,060; increment from Rs. 445 to Rs. 800. An entry-grade Medical Officer’s basic rises from Rs. 52,955 to Rs. 91,750; increment from Rs. 1,335 to Rs. 2,400. Thus, we have substantially raised basic salaries and increased increments by 80 percent across State, semi-State, statutory boards and corporations.

¶ 06 In past years, professionals faced issues due to PAYE on earnings. I recall the GMOA met then President Ranil Wickremesinghe seeking relief; he told them to negotiate with the IMF officials. In contrast, President Anura Dissanayake, after discussing with unions, has raised the PAYE threshold from Rs. 100,000 to Rs. 150,000 in this Budget — a victory.

¶ 07 In 2023, when we demanded wage increases for workers, the then Government said if wages were increased, VAT at 18 percent would be raised by another 3 percent. Yet, we did not abandon the struggle and they had to give some allowance — but only from April 2024, skipping Jan–Mar. That is how previous rulers treated workers. The NPP Government has delivered increases correctly and fairly.

¶ 08 On new recruitment to the public service: since 2001, we have led struggles for recruitment. After 2020–2022 periods, recruitments were frozen. Now, the Government has decided, with budgetary provisions, to recruit 30,000 graduates through competitive exams to fill existing vacancies, ensuring professionalism — including attention to about 40,000 vacancies in the teacher service.

¶ 09 For retirees up to 2019, and those up to 2020, we have adopted a policy decision to resolve pension issues in phases, allocating Rs. 10,000 million in this Budget. For retired principals and teachers since 1997, too, we plan to resolve issues in two phases.

¶ 10 There are many unresolved issues across the public service. At the Ministerial Advisory Committee on Public Administration, I proposed appointing a subcommittee to rapidly resolve them. Development Officers since 1999 lack proper promotion schemes for over 25 years, some lack defined duties, accepted service minutes, or fair salary scales commensurate with degrees; they have demands regarding MN-5.