- Govt says salary hike for public servants not possible this year; VAT increase required
- Treasury Secretary stated that raising salaries would require increasing VAT from 18% to 20-21%
- Government cannot impose burden on public with VAT increase
- Plan to revise public service salaries in 2025 Budget based on expert committee recommendations
- Salary increase of Rs. 10,000 for government employees would require additional Rs. 140 billion annually
- Increasing VAT by 2% would be needed to raise salaries by Rs. 10,000
- Central Bank can no longer print money to stabilize economy without jeopardizing IMF program
- President committed to allocating funds for salary increase in next year’s budget
- Expert committee appointed to study and report on salary discrepancies.
Source: adaderana.lk
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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