State Minister of Finance Ranjith Siyambalapitiya announced on Thursday (18 Jan.) that the Treasury has allocated funds for the disbursement of the promised Rs. 5,000 increase in wages of public sector employees.
This increase is part of the first phase of the 2024 Budget proposal, aiming to raise the cost of living allowance for state employees by Rs. 10,000, from Rs. 7,800 to Rs. 17,800.
State employees will receive an extra Rs. 5,000 starting this month, with another Rs. 5,000 increase scheduled from April 2024.
President Ranil Wickremesinghe had announced the Rs. 10,000 increase in the cost of living allowance during the 2024 Budget speech on 13 November 2023.
State Minister Siyambalapitiya noted that, excluding the Rs. 10,000 increase, the Treasury currently spends around Rs. 95 billion for state employees’ wages.
The additional cost, with the Rs. 5,000 and subsequent Rs. 10,000 increase, will be Rs. 7 billion and Rs. 14 billion, respectively, he said.
The State Minister emphasised that due to the halting of money printing and borrowing, these additional funds can be secured only through the reduction and control of expenses.
