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Cost of living hike is sop to mislead and pacify state employees, says union boss

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By Rathindra Kuruwita

The president has attempted to mislead and pacify state employees by offering to increase their cost of living allowance by 10,000 rupees from April 2024, President of the All Ceylon Management Service Officer’s Union Udeni Dissanayake told The Island yesterday.

Presenting the 2024 budget, President Ranil Wickremesinghe said the Cost of Living Allowance for public sector employees will be increased by 10,000 rupees effective from January 2024 but it will only be added to salaries from April 2024.

“We have asked for a 20,000 rupee salary increase as the salaries of the government sector had been last increased in 2016. The 10,000 allowance is an attempt to pacify us,” he said.

Dissanayake said usually salary increments are given in January.

“The VAT will be increased to 18 percent in January. The import costs of petrol, diesel and coal will rise by around 11 percent from 01 January 2014, when the VAT increases to 18 percent. With this the price of all essentials will skyrocket,” he said.

Dissanayake said that the 2024 budget has also not addressed any issues faced by high salaried Sri Lankan professionals either.

“They were promised some tax concessions but that too is not in the budget. The average government worker who is paid a pittance has also not received much. This will just lead to further disillusion and anger,” he said.



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Import and Export (Control) Regulations No. 08 of 2026

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The Ministry of Industries and Entrepreneurship Development has recommended the establishment of Sri Lankan Standards, i.e. the import testing methodology for imported tires used for passenger cars and pneumatic tires for three-wheelers with the aim of ensuring a fair competitive environment for local
manufactures and ensuring consumer safety and security.

Taking into the said recommendations, “Import and Export (control regulations N0.08 of the 2026)” has  been enacted to amend the existing regulations by means of the Extraordinary Gazette Notification No. 2508/27 dated 2026-10-01, prescribing Sri Lanka standard 1212 for the import of passenger types (HS Code 4011.10.90) and Sri Lanka standard 1347 for the import of
pneumatic tires for three – wheeled vehicles (HS Code 4011.90.10).

Accordingly, the Cabinet of Ministers has approved the resolution furnished by  the President in his capacity as the Minister of Finance, Planning, and Economic Development to submit the aforementioned regulations to Parliament for  approval.

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Draft Bill of the Public Private Partnership Enterprises Act to be gazzetted

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Approval of the Cabinet of Ministers was granted at their meeting held on 02.06.2025 to introduce a new act to promote and providing legal provisions for facilitating the Public Private Joint Enterprises within Sri Lanka as well as the establishment of the National Agency for Public Private Partnership Joint Enterprises.

Accordingly, the Legal Draftsman has formulated the relevant draft bill and the Attorney General has given his clearance to the said draft bill.

The Cabinet of Ministers approved the resolution furnished by the President in his capacity as the Minister of Finance, Planning and Economic Development to publish the said
draft bill in the government gazette notification and thereby submit it to the Parliament for its concurrence.

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Amendment of the Ayurvedha Act No. 31 of 1961

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Regulation, development and control of indigenous medical sector in Sri Lanka comprised of Ayurvedha, Sidhdha, Unani, Local Therapies are carried out under the provisions of Ayurvedha Act No. 31 of 1961.

Although amendments were made to the act from time to time as per the requirements, the necessity of further amending the Ayurvedha Act has been identified to enable efficiently maintaining all activities of local medical field productively, further formalizing the regulation of the sector, taking actions to providing licenses applicable to export of local medicines, and achieving the progress and sustainable development goals in the local medical sector.

Based on the said factors, the Cabinet of Ministers granted approval to the resolution furnished by the Minister of Health and Mass Media to direct the Legal Draftsman to formulate a draft bill to amend the Ayurvedha Act No. 31 of 1961.

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