COLOMBO, July 31, 2025 —
The Sub-Committee appointed to examine salary anomalies and related issues across Sri Lanka’s public sector is expected to submit its official proposal to the Cabinet in the coming weeks, paving the way for a comprehensive new salary structure covering the entire public service.
The initiative is part of a wider effort by the government to resolve systemic pay disparities that have triggered mounting pressure from trade unions, civil servants, and professional bodies.
Root Causes and Committee Mandate
The existing salary framework has long been criticized for its lack of uniformity, with inconsistencies in grades, allowances, and incremental benefits across various ministries and departments. Formed under the directive of the Ministry of Public Administration, the Sub-Committee comprises senior officials from key economic and administrative institutions.
A senior official close to the deliberations confirmed that the committee’s recommendations aim to address “core structural imbalances” and create a fair, performance-based remuneration system.
Objectives of the New Structure
According to preliminary insights, the proposed overhaul is expected to introduce:
- A unified national pay scale applicable to all public sector employees
- Standardized allowances to replace fragmented incentive schemes
- Performance-linked increments and promotion benchmarks
- Greater transparency in the allocation and revision of salaries
The reforms are also designed to align public wages with current cost-of-living realities, while ensuring fiscal sustainability for the state.
Cabinet Review and Timeline
The proposals are expected to be submitted to the Cabinet by mid-August. If approved, the new structure could be incorporated into the 2026 Annual Budget, with phased implementation beginning early next year.
Officials from the Ministry of Finance have indicated that a detailed financial impact assessment will accompany the submission to ensure the viability of the new framework.
Union Reaction and Broader Implications
Public sector unions have expressed cautious optimism about the government’s initiative. “We are prepared to support a system that guarantees equality and dignity for all government workers,” said a representative from the Government Services Trade Union Federation. “But we will also demand transparency and accountability in how these changes are implemented.”
If passed, the reforms would mark the most significant transformation of Sri Lanka’s public sector compensation system in more than two decades, potentially affecting over 1.5 million employees across the island.
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