Connect with us

News

‘Proposed public sector pay hikes consistent with IMF agenda’

Published

on

Udaya R. Seneviratne

Expert Committee Chairman hopes recommendations will be implemented whoever wins presidential election

By Shamindra Ferdinando

Chairman of the Presidential Expert Committee, Udaya R. Seneviratne, says he hopes that the recommendations regarding public sector salary increase will be implemented regardless of the outcome of the presidential election to be held next week,.

One-time Presidential Secretary Seneviratne emphasised that the final report that included a set of recommendations regarding ways and means to raise state revenue required to meet the new salaries structure had been handed over to President Ranil Wickremesinghe recently.

Seneviratne said so in response to The Island query whether the national economy could bear the additional heavy burden in the wake of Treasury Secretary Mahinda Siriwardana’s recent declaration that the government couldn’t meet the Rs 10,000 public sector salary increase unless VAT (Value Added Tax) was raised from 18% to 20%. Siriwardana is on record as having said that Rs. 140 bn was required annually to increase public sector salaries by Rs. 10,000.

Seneviratne said that his Committee examined all aspects while having consultations with 93 trade unions and representatives of various other organisations and interested parties.

President Wickremesinghe appointed a 10-member committee consisting of members of the public and private sector on June 12 this year. Responding to another query, Seneviratne said that the Treasury was represented by four officials.

Seneviratne said the basic salary increase ranges from 24% to 50%-60% starting from a basic salary of Rs 30,000 with the salary structure revised according to a ratio of 1 to 6.

Having received appointment as Secretary to the President on July 06, 2018 during Maithripala Sirisena’s tenure as the President, Seneviratne retired soon after Gotabaya Rajapaksa was sworn in as the President. Dr. P.B. Jayasundera succeeded Seneviratne.

Asked whether his report covered pensioners, Seneviratne said that issue should be dealt with separately. There are about 750,000 pensioners.

According to Seneviratne, the report dealt with 1.2 to 1.3 mn public sector workers, including the armed forces. “We are talking about approximately two million families depending on the Treasury. Raising the required funds is a daunting task,” Seneviratne conceded.

Seneviratne stressed the responsibility on the part of the government to implement what he called revenue proposals to raise funds needed. The Chairman of the Expert Committee said that the promised salary increment couldn’t be granted unless the revenue proposals were implemented.

Seneviratne said his Committee proposed a new salary structure in line with the agreement with the IMF that the public sector salary Bill should be 3.7% of the GDP (Gross Domestic Product) and capital expenditure 4% of the GDP.

Assuring that the Committee report was not meant to give political advantage to President Wickremesinghe, Seneviratne pointed out that the Parliament adopted the much discussed and debated Economic Transformation Bill (ETB) in July without a vote. Therefore, none of the political parties backing presidential contestants opposed the ETB, Seneviratne said, urging all interested parties to be prepared to proceed with the recommendations. Seneviratne noted that parliamentary polls would follow the presidential election.

“My humble advice is that no one should play politics with this issue. The failure to address grievances of those struggling to make ends meet can be catastrophic in the near future,” Seneviratne said, post-pandemic situation, declaration of bankruptcy and imposition of new tax regime consequent to the agreement with the IMF increased pressure on the people.

Seneviratne said that it would be pertinent to mention that President Wickremesinghe appointed his Committee in the wake of University teachers and others resorting to trade union action to pressure the government to grant them an immediate salary increase. Pointing out that the public sector salary structure was not sufficient at all, even to meet the basic requirement of families, Seneviratne emphasized the urgent need for a consensus on the proposed salary structure or face the consequences.



Business

he government is taking steps to streamline trade facilitation, customs processes, investment approvals, and improving export facilities – Prime Minister

Published

on

By

Prime Minister Dr. Harini Amarasuriya stated that the government is taking steps to strengthen local exporters by making trade facilitation, customs procedures, and investment approvals more efficient, and by improving export services.

The Prime Minister made these remarks while addressing the 27th Presidential Export Awards 2024/25 ceremony organized by the Ministry of Industries and Industrial Development together with the Export Development Board.

At this ceremony, which was held to recognize the best exporters of Sri Lanka for the financial year 2024/2025, a total of 107 awards including 15 overall awards and 92 sectoral awards for products and services were presented. Merit awards were also presented to eligible sectors based on applicants’ performance and their contribution to national economic development. Awardees were selected on several criteria such as export market diversification, job creation, growth in export revenue, repatriation of export income, environmental sustainability, institutional social responsibility, and value addition.

Institutions that demonstrated outstanding performance in the export sector were presented with the prestigious Presidential Export Awards for the year under the patronage of Prime Minister Dr. Harini Amarasuriya and Minister of Industries and Industrial Development, Mr. Sunil Hadunnetti.

Further expressing her views, the Prime Minister stated:

“The Presidential Awards Ceremony for exporters reminds us that Sri Lanka’s progress depends not merely on policies or administration, but on the ability to produce, to create value, and to compete internationally.

Over the past year, we faced numerous challenges. As a result, global markets and supply chains were disrupted. Economic uncertainty prevailed. We faced natural disasters. Despite this, many exporters had to adjust to these changes, reorganize production processes, diversify customers, and adopt digital technologies in order to remain competitive in the market.

The impact of the Ditwah cyclone also affected several industries within the export sector. Production facilities, storage facilities, and transportation routes in affected areas were damaged. Production chains and delivery schedules were disrupted.

Under such a difficult situation, some exporters experienced significant setbacks while trying to meet international export demands.

The government is taking steps to support exporters by assessing the damages they suffered due to the emergency situation, restoring their operations, and helping them recover. The government is also working to strengthen resilience against future natural disasters and to rebuild affected areas in a way that minimizes the risk of similar situations arising again.

Sri Lanka is currently undergoing a new economic transformation. For many years, instability, policy inconsistencies, and administrative inefficiencies hindered the progress of the country. This weakened investor confidence and made it difficult for businesses to plan ahead.

However, the present government is committed to governance based on stability, transparency, and accountability. This is not a short-term approach. It is a long-term process to ensure that the country does not fall back into uncertainty.

For this purpose, the government is implementing strong fiscal management, predictable policies, clear and simplified regulations, anti-corruption measures, major institutional reforms, measures that allow businesses to plan ahead, instill investor confidence, minimize unnecessary barriers, and support the development of the private sector.

For a long time, we relied heavily on international loans to sustain national expenditures. However, this is not leading a path toward a stable future. Our progress depends on our ability to earn through trade, innovation, and global engagement.

Your ability to take Sri Lankan expertise and creativity to the world is a strength for the entire nation. The government is ready to extend the necessary support to achieve this.

We understand that issues such as policy inconsistencies, delays that increase operational costs, limited access to competitive financing, gaps in infrastructure and technology, weaknesses in trade facilitation, and slow progress in expanding market access have impacted you. I would like to assure you that the government is directly addressing these challenges.

The focus of the government has drawn to build efficient, transparent, and predictable systems, streamlining trade facilitation, customs processes, and investment approvals, improving export facilities, and minimizing the gap between local businesses and global markets.”

This event was attended by Ministers Kumara Jayakody, Ramalingam Chandrasekaran, Sunil Kumara Gamage; Deputy Ministers Chathuranga Abesingha, Eranga Weerarathna, Arun Hemachandra, Nishantha Jayaweera, Muditha Hansaka Wijayamuni; Governor of the Central Bank Nandalal Weerasinghe; Secretary to the Ministry of Industries and Industrial Development Tilaka Jayasundara; Chairman of the Export Development Board Mangala Wijesinghe, along with ambassadors, foreign delegates, exporters, and a large gathering.

[Prime Minister’s Media Division]

Continue Reading

News

Big fossil fuel companies are responsible for climate crisis but poor countries like Sri Lanka are battered by it – Greenpeace South Asia

Published

on

Greenpeace South Asia yesterday sounded a renewed alarm after a rapid analysis by World Weather Attribution (WWA) confirmed that human-induced climate change significantly intensified the extreme rainfall that battered Sri Lanka during Cyclone Ditwah and fuelled severe flooding across the Malacca Strait.

Greenpeace South Asia said that according to the study, the five-day rainfall extremes, like those unleashed by Ditwah, are now 28% to 160% more intense due to the 1.3°C of global warming already driven by greenhouse-gas emissions. Warmer sea surface temperatures in the North Indian Ocean — 0.2°C above the 1991–2020 average — supplied the additional energy that powered the cyclone’s rapid strengthening and heavy downpours.

WWA researchers stressed that Sri Lanka’s existing vulnerabilities magnified the disaster’s impact. Steep highlands funnelled water into densely populated floodplains, while unplanned urbanisation in flood-prone areas heightened exposure. Breakdowns in ICT systems meant early warnings failed to reach many, leaving low-income and marginalised communities to absorb the worst of the cascading disruptions to transport, electricity and essential services.

Avinash Chanchal, Deputy Director of Greenpeace South Asia, said the human toll was worsened by forces far beyond the island’s control.”During Cyclone Ditwah, we saw people coming together — neighbours rescuing neighbours, volunteers working through the night,” he said. “But while ordinary Sri Lankans showed up for each other, the real culprits were nowhere to be seen. The WWA study confirms what we already knew: this disaster was intensified by the carbon pollution of the world’s biggest fossil fuel companies. They caused the crisis, yet it’s the frontline communities who pay the price.”

Greenpeace warned that events like Ditwah signal a dangerous new normal for the region.”With increasing incidents, like Cyclone Ditwah, it is clear that extreme weather events are no longer isolated,” said Kumar. “Communities in South Asia will continue to struggle to cope with such conditions.”

The organisation urged countries most responsible for historic emissions to respond decisively. “This is high time that developed-country governments stop pretending this is normal,” Greenpeace said. “They must immediately cut emissions, phase out fossil fuels, and deliver real finance for loss and damage. Anything less is a betrayal of the people already living on the frontlines of climate breakdown.”

Continue Reading

News

Former Speaker arrested following road accident

Published

on

Asoka Ranwala

Former Speaker and NPP Member of Parliament Asoka Ranwala, who was involved in a vehicular collision Thursday night, has been arrested by the police.

He was taken into custody on charges of dangerous driving and failing to prevent an accident.

Police said that the MP is currently receiving treatment at the Colombo National Hospital and remains under police protection.

The accident occurred on Thursday (11) when the jeep in which the former Speaker was travelling collided with a car.

Police confirmed that the collision took place at Denimulla in Sapugaskanda.

A 25-year-old woman, her 6-month-old infant, and 55-year-old mother, who were travelling in the car, sustained injuries and were hospitalised.

Police added that the infant has been transferred to the Lady Ridgeway Hospital for Children for further treatment.

Continue Reading

Trending