News

Govt. in a bind over massive salary and pension bill: Revenue dwindles amidst pandemic

Published

5 years ago

2021/08/6

By Shamindra Ferdinando

State Minister Dr. Nalaka Godahewa says the country is in a bind due to dwindling revenue in the face of annual state sector salary and pension bill reaching a staggering Rs 1.2 trillion.

Dr. Godahewa, who holds Urban Development, Waste Disposal and Community Cleanliness portfolios, is of the view that the issue at hand should receive the attention of all political parties represented in Parliament.

The Viyathmaga pioneer, Godahewa said so when The Island sought a clarification as regards his admission at a recent event at the National Housing Development Authority (NHDA) that the government was left with Rs 200 bn after the allocation of Rs 1.2 bn for state sector salaries and pensions. The event was held to welcome those who had been recruited to the public sector.

The declaration comes in the wake of COPA (Committee on Public Accounts) faulting tax collection mechanism comprising Sri Lanka Customs, Inland Revenue and Excise Department for failing in their primary task. The annual income has fallen to just over 9 percent of the GDP (Gross Domestic Product) according to the Central Bank.

The State Minister said: “There are over 1.4 mn public sector workers. There is a large number of pensioners. Annually, we need about Rs 1.2 trillion to pay salaries and pensions. In 2020, our annual income was Rs 1.4 trillion. We are left with Rs 200 bn to provide health services, education, transport et al.”

Dr. Godahewa explained the government had no option but to obtain loans to manage the economy under extremely difficult situations.

The Gampaha District lawmaker questioned the responsibility on the part of the public sector as the country struggled to cope up with the daunting challenges caused by the raging Covid-19 epidemic. He pointed out that the public sector salaries and pensions had been fully paid in spite of severe difficulties whereas the private sector had imposed unilateral salary cuts.

During his address at the NHDA, State Minister Godahewa made reference to honest as well as corrupt public sector officers and those who neglected their responsibilities. Welcoming those who had newly joined the public service, Dr. Godahewa urged them to join the genuine lot.

The State Minister said that a few irresponsible individuals shouldn’t be allowed to tarnish the image of the entire public sector.

Dr. Godahewa admitted that the government too was responsible to see whether the public sector addresses the requirements of those who needed their services.

The national economy had suffered severe setback due to the total disruption of the tourism trade that brought as much as USD 5 bn annually, he said. The State Minister explained the crippling impact the disruption of tourism was having on the national economy at an event at Walapone where he inaugurated a major construction project. The State Minister emphasized the need to kick start tourism once the ongoing vaccination drive was brought to a successful conclusion by Sept-Oct 2021.

The SLPP is under heavy fire for depriving the Treasury of over Rs 500 bn at the onset of the incumbent administration. The SJB both in and outside parliament has alleged that the Treasury lost well over Rs. 500 bn due to a controversial decision to do away with a range of taxes, including PAYE (Pay As You Earn), NBT (Nation Building Tax), Withholding tax, Capital Gains tax imposed on the Colombo Stock Exchange, Bank Debit tax and unprecedented reduction of VAT (Value Added Tax). The SJB said that the 15% VAT and the 2% NBT which amounted to 17% imposed on all goods and services were unified and reduced to 8%, effective from the first of December 2019.

SJB senior Mujibur Rahman said that the decision was taken at the first cabinet meeting of the incumbent government held on Nov 27, 2019.

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One in five Lankans suffering from NCDs: Minister

Published

13 mins ago

2026/05/16

Thilina Walpola

Health and Media Minister Dr. Nalinda Jayatissa and Western Province Governor Hanif Yusoof speaking to the officials during the event

Nearly one in five Sri Lankans is suffering from some form of non-communicable disease (NCD), Health and Media Minister Dr. Nalinda Jayatissa said on Thursday (14), warning that the trend poses a serious public health challenge.

He said the estimate covering all age groups from children to the elderly was confirmed in a 2024 report by the Department of Census and Statistics, and underscored the urgent need for stronger national interventions.

The Minister was speaking at the inauguration of a newly constructed four-storey ward complex at the Kalutara Ayurvedic Base Hospital, built at a cost of Rs. 250 million, with funding from the Western Provincial Council.

The new facility comprises an outpatient department, male and female general wards, paying wards, an administrative complex, auditorium, staff rest rooms and a doctors’ residence, with a total capacity of 50 beds.

Dr. Jayatissa said the hospital, which began as a central dispensary and was later upgraded into a government Ayurvedic institution, had evolved over decades, with support from successive administrations.

He noted that the facility serves patients from areas, including Vidiyagoda, Horana and Bandaragama, and is expected to expand its reach further, in the coming years.

The Minister identified NCDs as the country’s leading health challenge, noting that around 80 percent of hospital admissions and deaths are linked to such diseases. He said several programmes were underway to address the growing burden.

The Vidiyagoda Ayurvedic Hospital was established on October 29, 1992, and upgraded, in 1998, to a government Ayurvedic hospital.

Several officials, including Kalutara District MP Nandana Padmakumara, District Secretary S.P. Herath, and provincial health authorities, attended the event along with medical staff and residents.

News

Two suspects arrested with ‘Ice’

Published

13 mins ago

2026/05/16

Thilina Walpola

Two suspects were arrested in the Matara area with Crystal Methamphetamine, more commonly known as “Ice”, during a special search operation carried out by the Sri Lanka Coast Guard, in coordination with the Police Narcotic Bureau last Wednesday (13).

The raid was launched based on intelligence received by the Coast Guard, leading to the recovery of 6.67 grams of the narcotic.

The suspects, along with drugs, were handed over to the Kotawila Police for legal proceedings.

News

NSF opens 2026 awards for science popularisation

Published

13 mins ago

2026/05/16

Thilina Walpola

The National Science Foundation (NSF) has called for applications for the NSF Science Popularisation Awards for Scientists 2026, aimed at recognising individuals who have made significant contributions to bringing science closer to the public in Sri Lanka.

The awards seek to honour scientists who have extended their work beyond laboratories to promote scientific literacy, education and public engagement across the country.

This year’s awards will be presented under three categories—Lifetime Achievement Award, Commendation Awards and Appreciation Awards.

The NSF said the initiative places emphasis on science popularisation rather than purely technical research achievements. Eligible work includes science writing and journalism, public lectures, workshops, radio and television programmes, as well as digital outreach through social media platforms.

Applications are open to Sri Lankan citizens whose contributions in science communication were carried out between January 1, 2023 and December 31, 2025. NSF staff members, committee members and Board of Management members are not eligible to apply.

Applicants are required to submit a detailed dossier outlining their academic background, achievements in science popularisation and supporting material such as publications, media content and digital work.

Application forms can be downloaded from www.nsf.gov.lk, and completed applications must be submitted by June 15, 2026.

Submissions may be emailed to dilrukshi@nsf.gov.lk or maduka@nsf.gov.lk with the subject line “SPAS 2026,” or sent by post to the Director General, National Science Foundation, 47/5 Maitland Place, Colombo 7.

The NSF said the awards aim to strengthen public engagement with science and encourage wider dissemination of scientific knowledge across society.