The Hon. Mahinda Jayasinghe - Deputy Minister of Labour

¶ 01 Hon. Presiding Member, today we debate the expenditure Heads of two ministries. Since the 18th, this Budget debate has been ongoing. Throughout these days, including today, the Opposition keeps peddling various falsehoods about the salary increase. Either they do not understand the increase or how salaries were adjusted. As MP Lakshman Nipunarachchi said, even a fifth grader can understand it. If not, I suggest they learn from a fifth grader. Or, Hon. Presiding Member, allocate Committee Room No. 01 one day; I will explain it to them. I urge the Opposition MPs to stop repeating these lies. However much they repeat them, the working people of this country will not accept it. The people now understand the facts.

¶ 02 I recall an Opposition MP claiming salaries doubled in 2016. How? In 2016, the minimum salary in the public service was Rs. 11,730. An allowance of Rs. 12,500 had been attached. In five stages up to 2020, the basic salary was increased to Rs. 24,250. Ultimately, the net increase was Rs. 20. But as they themselves say, after W&OP deductions even that Rs. 20 vanished. That day, the working people were deceived. We, as trade unions, fought then. What we needed was an increase to the basic salary and to amalgamate allowances into the basic.

¶ 03 Today, the minimum salary of Rs. 24,250 has been increased to Rs. 40,000. Many MPs and our Minister Nalinda Jayatissa have explained this all day. If they still do not understand, I do not know how else to explain.

¶ 04 [The Hon. Bimal Rathnayake] The GMOA has suspended the islandwide token strike until March 21st.

¶ 05 Thank you very much, GMOA. Yes, GMOA has suspended the strike after discussions today. We are grateful. We hold our doctors and the health service in high esteem. We remember their dedication during COVID. We also remember the support some specialists and general doctors gave to the NPP—informing even their channeling patients to vote for change.

¶ 06 In truth, their salaries have not been reduced. Their issue was converting the 1/21 leave allowance to 1/30, and the OT allowance from 1/80 to 1/120. They themselves said this was not about the salary increase but about their dignity. I do not understand how changing 1/21 to 1/30 or 1/80 to 1/120 affects dignity. Be that as it may, we tell the Opposition: until April you can keep telling these lies. When public servants receive their April salaries, they will see the truth.

¶ 07 How did they cook up their numbers? Last year, President Ranil Wickremesinghe granted a Rs. 10,000 allowance, but only Rs. 5,000 was paid in January, February, and March—creating Rs. 15,000 arrears, which our Government paid for this year’s January–March. Regardless of our pay hike, that allowance will not continue from April—no government would have continued it. When it stops, they claim the increase is only Rs. 975. I do not know how to teach them arithmetic. So I repeat: stop lying. Whether it is ignorance or trickery, the people have understood.

¶ 08 We accept that even this salary increase is not sufficient, given living costs and inflation that rose near 70%. But we assumed office in a defaulted, bankrupt country declared so on 12 April 2022. In the past months, our Government has stabilized the economy somewhat. Within that context, with the first Budget, we delivered the best feasible, relative salary increase. We do not claim it is perfect, but relatively the best we can do now. We cannot answer psychological issues some have; we are focused on increasing workers’ pay.

¶ 09 On pensions: they have increased by 75% to 79% for some categories. I will table a chart prepared by a retired principal, Comrade Anbu Jawahar. However, issues remain—teachers and principals who retired between 1997 and December 2021 and those who retired from 2020 to 31.12.2024 still raise concerns. We know this is not our last Budget; we will push to address these in future Budgets.

¶ 10 For those unclear about the pay revision, Annexure V of the Budget explains the scales and calculation. If needed, we can even provide tuition.

¶ 11 We criticize past governments because when we fought for wage justice, ruling politicians increased their own benefits—insurance from Rs. 250,000 to Rs. 1 million, and other perks—while the people suffered. This Government reduced MPs’ insurance from Rs. 1 million to Rs. 250,000, rejected vehicles, and the President clearly said no vehicles this year. We cut MPs’ privileges, while granting relief including salary increases to the people.

¶ 12 On politicization of the public service: those who stormed institutions and assaulted public servants now cry crocodile tears. Take note.

¶ 13 Regarding our Labour Ministry: this Budget allocates an additional Rs. 598 million to the Department of Labour—rising from Rs. 4,422 million to Rs. 5,020 million. For implementing labour law and relations, Rs. 127 million; for workers’ safety and health, Rs. 163 million; for the Employees’ Provident Fund (EPF) Rs. 1,600 million; and for the Department of Manpower and Employment, Rs. 622 million.

¶ 14 We are rolling out the electronic “B” Card, though some issues arose; we are addressing them. We are working to strengthen the legal framework, revive 44 Wages Boards—some lacked appointments—and in January 2025 reconvened the National Labour Advisory Council (NLAC). After the Budget, we will resume regular tripartite meetings.

¶ 15 An Opposition MP highlighted “illegal” wages and lack of EPF—valuable points we are discussing. Female labour force participation is only 31%. We are considering necessary legal frameworks, including adopting the ILO Maternity Protection Convention to support women’s participation. We aim to eradicate child labour.

¶ 16 EPF partial withdrawals currently allow taking 30% and then another 30% only after 10 years, with conditions that sometimes lead to fake documents and extra costs. Workers have requested reducing this waiting period to five years. We are examining possible legal amendments with the Secretary and the Commissioner General of Labour.

¶ 17 On occupational safety and health (OSH), we have begun workshops, including at NERD, and plan islandwide programs on workplace safety and occupational diseases. Our Ministry oversees six institutions; we will manage them better going forward.

¶ 18 In this debate, while we value constructive Opposition inputs, we need a responsible Opposition that critiques fairly, not one that grabs stray words and shouts.

¶ 19 We will take forward the sound points raised today across both Ministries. Thank you.