6 days Ago By MIAP
By: Staff Writer December 15, Colombo (LNW): In his policy statement at the inauguration of the 10th Parliament, President Anura Kumara Dissanayake pledged to overhaul Sri Lanka’s public sector to enhance efficiency and satisfaction among citizens and employees. He emphasized that the overwhelming support from public servants in the 2024 election signaled a mandate for reform.Sri Lanka’s public sector, one of the largest in Asia, has long been a financial strain on the economy.
Previous administrations, including that of President Ranil Wickremesinghe, proposed measures such as voluntary retirement schemes to reduce the workforce amid fiscal constraints. Between 2020 and 2022, the public service shrank from 1.528 million to 1.
393 million employees due to layoffs, retirements, and the introduction of a scheme allowing workers to take extended leave for overseas employment Over 2,000 employees have already opted for this five-year leave program to pursue foreign job opportunities. Despite these measures, Sri Lanka’s public sector still consumes a significant portion of government revenue. In 2023, Rs.
701 billion was allocated for public sector salaries, following a 2022 expenditure of Rs. 956 billion. A report by the Manpower and Employment Ministry revealed that during the COVID-19 pandemic, only 50% of the workforce was essential, indicating that drastic downsizing could enhance efficiency.
The report suggested cutting up to 850,000 jobs to streamline operations, but such measures risk exacerbating poverty and unemployment. To address this challenge, the government has indefinitely suspended new recruitments and reduced the retirement age from 65 to 60. However, concrete plans for further workforce reductions remain unclear Analysts note that the previous government failed to make progress in re-skilling the public sector workforce, leaving room for significant reforms under the current administration.
President Dissanayake acknowledged the widespread dissatisfaction with state services among both citizens and employees. “ We face a dual challenge: an unsatisfied public and a discontented workforce. Our responsibility is to establish a public service that meets the needs of both,” he stated.
The President highlighted the critical role of a competent public sector in implementing political and economic reforms, emphasizing the need for a people-centered approach. Dissanayake’s reform agenda aims to rebuild trust in state services while addressing inefficiencies. He argued that a well-structured and responsive public sector is essential for achieving national progress.
The President reaffirmed his commitment to creating a public service that prioritizes the welfare of citizens and the professional fulfillment of its employees, noting that the strong electoral mandate reflects public support for these changes. While the President’s vision for a transformed public sector is ambitious, critics point out the lack of concrete plans for restructuring or rightsizing. As the government grapples with fiscal challenges and public expectations, Dissanayake’s ability to deliver meaningful reforms will be critical in shaping Sri Lanka’s economic future.
.
