- Govt. officers unhappy with salary ‘hike’ extent, CTU says public servants will commence protest action
- Health sector claims reduction in take-home pay and OT, promotions system
- FTZs Union finds pvt. sector employees left dry, to discuss with other pvt. TUs
- Bus owners find no tax relief for pvt. transport sector, consumers left wanting
The Budget for the year 2025 which was presented to the Parliament yesterday (17) by President and Finance, Planning and Economic Development Minister Anura Kumara Dissanayake has attracted criticism from various sectors, with trade unions (TUs) and industry leaders expressing disappointment over its lack of proposals to address their issues.
Many claim that the Budget fails to address key concerns affecting public servants, health workers, private sector employees, private transport operators, and consumers.
The National Convenor of the Sri Lanka Government Officers' Trade Union Association Pradeep Basnayake said that the public servants had high hopes of receiving the salary increase of Rs. 25,000 that they requested. However, under the Budget proposals, he said that they would actually receive only Rs. 975 in April. "This is nothing more than a numbers game. The actual total increase is Rs. 3,500, and it will also be given in stages over three years. It is not enough at all." He said that the pensions of public servants would see a slight increase with the proposed basic salary increase (the addition of some allowances that public servants already receive to their basic salary), but that the real benefit would only apply to those who joined the public service before 2016.
Speaking to The Daily Morning, the Ceylon Teachers' Union (CTU) President Priyantha Fernando said that the Government has ignored their demands and manipulated numbers to create a false impression of a salary increase. Instead of providing an actual raise, he claimed that the Government has merely added existing allowances to the basic salary of public servants. "Public servants contributed much to bring this Government to power. More than 80% of them supported it. Given the rising cost of living (CoL), the CoL allowance should have been increased by Rs. 21,500 by 31 December 2024. Our struggle for this lasted until August 2024, with more than 90% of public servants participating. TUs affiliated with the Janatha Vimukthi Peramuna-led National People's Power (NPP) also supported this effort. Despite these demands, the Budget has shattered public servants' hopes for a better future and has effectively blocked the fight for higher salaries by imposing a three-year plan." He also noted that any salary increase in April for public servants would be no more than Rs. 3,000 compared to their salary before the Budget was presented, and hence warned that the public servants would definitely initiate TU actions in the coming days.
When contacted, the College of Medical Laboratory Scientists President Ravi Kumudesh charged that the take-home pay and overtime (OT) allowances of health workers will be reduced after this Budget, and added that it is something that previous Governments were unable to do. He also claimed that the system that complementary and paramedical professionals fought for years to establish – allowing them to receive promotions within 12 years – has been dismantled through the Budget. "Health workers may now have to complete about 40 years of service to receive their final promotion. This means that even those with degrees may no longer have a path to their last promotion. We secured these achievements through years of struggle. We had to engage with several Governments, Presidents, Prime Ministers, and Health Ministers. All of those hard-earned victories have been reversed in this Budget." Kumudesh further said that these changes might have been justifiable if applied equally across all public sectors, but that certain categories of public servants have been treated differently. He added that they would not immediately launch TU actions but would do so depending on the response of what he claimed to be nearly 68% of the health workers who supported the current Government in coming to power.
Free Trade Zones (FTZs) and General Services Employees Union of Sri Lanka General Secretary Anton Marcus told The Daily Morning that while they did not have enough time to conduct an in-depth analysis of the Budget, at first glance, they saw no clear solutions to the ongoing economic crisis, and new strategies for earning foreign exchange or repaying the country’s debt. "Creating a satisfied workforce and ensuring the well-being of employees is also important, but no proposals have been made in this regard. Private sector employees were expecting a significant salary increase, but the only measure introduced is raising the minimum wage to Rs. 27,000. In reality, very few employees currently earn less than this amount, and it is nearly impossible to find workers willing to work for Rs. 27,000 in today’s economy. The President said that the employers have agreed to it; yes, they may have agreed to it, but they know that they don’t have to offer anything beyond what they currently do." Noting that the private sector is the backbone of the economy, he said that limiting their wage structure in this way could lead to more workers seeking opportunities abroad. He also said that they plan to engage with private sector TUs in the coming days to discuss this issue and make necessary interventions.
Lanka Private Bus Owners Association President Gemunu Wijeratne, speaking to The Daily Morning, said that the Budget does not include any positive proposals or financial allocations related to the private transport sector. "There are huge taxes imposed on the import of buses and spare parts. We were hoping that these taxes would be reduced to some extent through the Budget. But, no such proposals are included. Simply put, the Budget has been prepared without giving any regard to the private transport sector."
National Consumer Front Leader Asela Sampath, when contacted by The Daily Morning, charged that the Budget is lacking any proposals that benefit consumers. "There are several issues such as consumer safety, the black market mafia, strengthening the Consumer Affairs Authority, and implementing modern technology to assess food quality that should have been considered in preparing the Budget. Previous Governments included at least two or three proposals aimed at ensuring consumer rights, but, this Budget presents no systematic programme to reduce the prices of essential commodities. It may favour those who voted for the NPP, but it offers nothing for the people in general."