The Hon. (Dr.) M.L.A.M. Hizbullah

¶ 01 Bismillahir Rahmanir Rahim.

¶ 02 Hon. Speaker, thank you for allowing a Question by Private Notice to the Minister of Public Administration and Local Government.

¶ 03 Pursuant to IMF conditions, local authorities have been required to fund portions of employee salaries from their own revenues: Municipal Councils 20% from 2024, and Urban Councils and Pradeshiya Sabhas 20% from January 2025, increasing by 20% annually to 100% by 2028. Given current economic conditions, especially in the North and East where there is low economic activity and investment, and areas affected by war and natural disasters, many local bodies struggle even to meet this 20%. They are also responsible for waste removal, sanitation, drain cleaning, and street lighting. With salary burdens, many cannot deliver services; even a Municipal Council in the Eastern Province is struggling to pay September salaries. This deters officials from serving there, and existing staff seek transfers.

¶ 04 These institutions are crucial to implement programmes such as “Prosperous Country – Prosperous Life” and “Clean Sri Lanka”. The Government must consider granting time-bound relief and interest-free credit facilities so these councils can establish revenue-generating activities (markets, fuel stations, etc.). Without revenue, sudden salary obligations cannot be met, and core services like waste collection and drain cleaning will be imperilled.