The Hon. (Prof.) A.H.M.H. Abayarathna - Minister of Public Administration, Provincial Councils and Local Government

Jathika Jana balawegaya· Puttalam· 20 May 2025 ·Oral question: Oral Questions: Question Nos. 1-6

Public Finance

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The Minister stated that there is no pension discrepancy, noting that pensions for public officers retired on or before 01.01.2017 have already been revised under Public Administration Circulars 14/2019 and 03/2016. He said the 2025 Budget provides Rs. 10,000 million to revise pensions from 01.07.2025 for those retired before 01.01.2018, with further revisions planned for retirees before 01.01.2020 under stages 3, 4 and 5 of Circular 03/2016. He also noted that public sector salary increases will take effect from 01.01.2025, with payments from 01.04.2025 without arrears, and that the cost of living allowance for pensioners will continue at the level set under the 2024 Budget.

Verbatim record (translated)

Machine-translated from Sinhala / Tamil / English

¶ 01 Hon. Speaker, the answer is as follows:

¶ 02 (a)(i) There is no discrepancy.

¶ 03 (ii) By Public Administration Circular 14/2019 dated 31.05.2019, provisions were made to revise the pensions of all public officers who retired on or before 01.01.2017 based on the salary applicable as at 01.01.2017, as set out in Annex II to Public Administration Circular 03/2016 dated 25.02.2016. Accordingly, pensions of all retirees who retired before 01.01.2016 and between 01.01.2016 and 01.01.2017 have now been revised on the basis of the salary scale applicable as at 01.01.2017, in terms of Circular 03/2016.

¶ 04 In line with the above, it was decided to revise pensions of all who retired on or before 01.01.2017 in two stages under Circular 03/2016, and this has now been implemented.

¶ 05 Under the 2025 Budget proposals, it has been decided to revise the pensions of all retirees who retired before 01.01.2020 in respect of stages 3, 4 and 5 of Circular 03/2016. Accordingly, the Government has decided to effect from 01.07.2025 the revision of pensions of all who retired before 01.01.2018, based on the salary applicable as at 01.01.2018 set out in Annex 8 to Circular 03/2016. A provision of Rs. 10,000 million has been allocated under the 2025 Budget for this purpose.

¶ 06 (iii) Under the 2024 Budget proposals, the then Government decided to increase the cost of living allowance of public officers from Rs. 7,800 to Rs. 17,800, and the pensioners’ cost of living allowance from Rs. 3,525 to Rs. 6,025. (Placed in the Library.)

¶ 07 (iv) Under the 2025 Budget proposals, the Government has decided to increase the basic salary of all public officers, with the salary revision effective from 01.01.2025, and to implement payment from 01.04.2025 without arrears. Accordingly, pensions of those retiring after 01.04.2025 will be computed on the revised salaries.

¶ 08 It has been decided under the 2025 Budget proposals to revise the pensions of all retirees who retired before 01.01.2020 for the remaining three stages under Circular 03/2016.

¶ 09 In view of the above salary revisions and measures to remove pension disparities under the 2025 Budget with allocated funds, the Government has decided to continue payment of the cost of living allowance as determined under the 2024 Budget proposals.

¶ 10 (b) Not applicable.

Provenance

Source: Hansard, Tuesday, 20 May 2025 ·No. 1749010823009957 ·English daily/uncorrected Hansard
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Cite as: The Hon. (Prof.) A.H.M.H. Abayarathna - Minister of Public Administration, Provincial Councils and Local Government. 10th Parliament, Parliament of Sri Lanka. Hansard, 20 May 2025. No. 1749010823009957. Politick, https://staging.politick.io/lk/speeches/25758