The Hon. Thilanka U. Gamage
Hon. Thilanka U. Gamage defended the Budget’s public-sector salary increases, stating that Rs. 5,000 would be added to basic salaries in 2025 with further 35 per cent tranches through the 2026 and 2027 Budgets, while also improving pensions, loan eligibility and allowances. He argued that the Budget reduces privileges for political office-holders and redirects resources to citizens, with major allocations for education and health and an increased PAYE threshold of Rs. 150,000. He contrasted these measures with past expenditure he characterized as wasteful and said the Government’s approach aims to protect real incomes through price stability and investment in rural communities and industries.
Verbatim record (translated)
Machine-translated from Sinhala / Tamil / English¶ 01 Hon. Deputy Chairperson, I will first respond to Hon. Rohitha Abeygunawardhana’s analogy linking salary increases to wedding dowries. That may be his personal approach to family matters, but regarding salaries, the President and Government have already explained clearly in the Budget and during this debate how increases will be delivered.
¶ 02 Contrary to Opposition claims, this is not vague. We are adding Rs. 5,000 to the basic salary now, so even the lowest-paid public servant receives an increase of Rs. 5,975 from April 2025. Further tranches—35% and 35%—will be implemented within the next 20 months via the 2026 and 2027 Budgets. Raising the basic salary has added benefits: higher pension bases, higher loan eligibility, increased ten-month distress loan amounts, and related allowances. The NPP Government has, for the first time in history, accorded the public servant due dignity through a structured, sustainable increase.
¶ 03 Previously, the lowest basic salary hovered around Rs. 24,000. In our first Budget, we raised the basic pay by five figures—an unprecedented uplift—making this a genuinely pro–public servant Budget.
¶ 04 Unlike in the past, where Budgets chiefly boosted privileges of rulers—vehicles, permits, fuel, and lavish perks—this Budget cuts privileges of the President, Prime Minister, and Ministers and redirects savings to the people. For the first time, a truly democratic Budget prioritizes citizens over rulers.
¶ 05 A good Budget is not only about expenditure; it also protects purchasing power by stabilizing prices. In the past, salary hikes were clawed back by taxes and inflation. We focus on macro stability, so real wages rise.
¶ 06 We allocate Rs. 619 billion to education, reflecting our pledge to prioritize education first, second, and third. Rural schools long neglected will get facilities so all children have equitable access. For health, Rs. 604 billion is allocated; such investments reduce household out-of-pocket costs—another form of real income gain.
¶ 07 We have also raised the PAYE threshold from Rs. 100,000 to Rs. 150,000 per month, leaving more in people’s pockets. Contrast this with past waste—like spending USD 326 million from public funds to launch a rocket for a President’s son’s science fair project, which delivered no national benefit. We will not misuse taxpayers’ money.
¶ 08 This Budget channels spending to industries and rural communities, uplifting workers and integrating them into national wealth creation. Together with forthcoming Budgets, we will deliver the promised “Prosperous Country, Beautiful Life.”
¶ 09 Thank you.
Provenance
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- Hansard, Friday, 21 February 2025 ·No. 1740809173064396 ·English daily/uncorrected Hansard
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Cite as: The Hon. Thilanka U. Gamage. 10th Parliament, Parliament of Sri Lanka. Hansard, 21 February 2025. No. 1740809173064396. Politick, https://staging.politick.io/lk/speeches/3720