v2025 (2)

v2025

News

Government employees’ basic salary will increase by 24% to over 50% from next January

Chairman of the Expert Committee on Public Service Salary Disparities, Udaya R. Seneviratne said that the basic salary of public service employees will be increased by a minimum of 24% for primary-level service categories. For all government officials, salaries will gradually increase from an average of 24% to 50%, depending on current fiscal feasibility.

Mr. Seneviratne further said in light of prevailing inflation and economic conditions, a cost of living allowance of Rs. 25,000 will remain unchanged for three years and will be provided to all government employees for three consecutive years, starting from January 2025, with 2025 being considered the base year.

Mr. Udaya R. Seneviratne emphasized that regardless of which government is in power, there is a pressing need to increase the salaries of public servants. These proposals were made to address and eliminate salary disparities, taking into account past trade union protests within the public service. Accordingly, the proposals have received approval from both the Cabinet and the Treasury.

Chairman of the Expert Committee on Public Service Salary Disparities, Udaya R. Seneviratne shared these views during a press conference titled “Collective Path to a Stable Country” held today (22) at the Presidential Media Centre.

Mr. Seneviratne stated that the basic salary for the primary-level service category employees will be Rs. 30,000.00, with the total salary, including the cost of living allowance, amounting to Rs. 55,000.00.

Public service plays a vital role in the development of Sri Lanka and is also the driving force of development. The restructuring efforts are prioritized to address the current challenges in the public sector. The Presidential Expert Committee on Public Service Salary Disparities has presented a comprehensive program aimed at creating a satisfying work environment for public servants, delivering excellent service to the people, and positioning the public service as a key driver of economic development.

He also said that action will be taken to provide the cost of living allowance of Rs. 12,500 each for the pensioners from January 2025 and measures will also be taken to award the claimed salary increment for the government officials who retired prior to the year 2020 and revise their pension accordingly.

Further, action will be taken to provide benefit through the Budget 2025 in step wise based on the current fiscal viability.

To enhance the effectiveness and efficiency of the Public Service and provide exceptional service to the public, a scientific work study will be conducted in 2025. This study will inform a comprehensive program to restructure the Public Service as needed. A thorough assessment of the required number of employees will also be carried out based on this evaluation.

Appropriate performance indicators (KPIs) will be introduced for government employees, and a system for granting annual salary increments based on performance progress will be developed. Additionally, methods for providing incentives and other non-financial benefits based on performance will be implemented.

To enhance the quality of public service and ensure a distinctive government service for taxpayers under the current tax policy, a competitive recruitment system will be established. This system will be based on the Sri Lanka Qualification Framework (SLQF) and National Vocational Qualification (NVQ). This approach aims to ensure that qualified individuals are placed in appropriate roles, creating a more effective and efficient public service.

The government’s capital investment program for E-Governance will prioritize the digitization and automation of the Public Service, with a focus on incorporating technology in every possible aspect over the next three years, starting in 2025.

Special attention will be given to implementing E-Governance across government ministries and institutions, beginning with Grama Niladhari offices. This initiative aims to enhance the performance of revenue-generating institutions and those providing public services.

Over the next three years, efforts will be made to restructure identified public institutions from their traditional departmental model—dependent on the General Treasury for many years—into an innovative enterprise model.

These institutions will be transformed into Public Quoted Companies with a democratic governance structure, where ownership is divided as 30% government shares, 30% investor shares, 30% public shares through stock market listing, and 10% employee shares.

Government officials who are eligible for pensions and are assigned to these new institutions will have their pensions deferred until they reach age 60. They will receive other benefits during their service in these institutions.

Measures will be introduced to optimize the delivery of certain government services by outsourcing these services to external providers. This approach aims to reduce government expenditures and encourage private sector involvement. It will help avoid unnecessary recruitment in the Public Service and enable private providers to offer more effective services. As a result, economic services will be expanded.

To ease the financial burden on government employees, the Agrahara Medical Insurance Scheme will be restructured to lower their health expenses. The plan is to maximize benefits through the scheme, with each government employee, including pensioners, contributing Rs. 1,000 per month.

Additionally, the National Insurance Trust Fund, which administers the Agrahara scheme, will enhance medical services for government employees. This will involve modernizing the national hospital system and gradually upgrading selected government hospitals with special amenities for employees.

Due to the high demand for Sri Lankans abroad, many are migrating for employment and higher education, drawn by the country’s reputation for free education and skilled human resources. As a result, Sri Lanka loses valuable talent and significant foreign exchange is spent on overseas education. A large number of eligible students miss out on opportunities to study at state universities due to limitations in free higher education, forcing parents to cover high costs for private institutions and international universities. The trend of university students leaving the country is increasing due to insufficient economic benefits.

To address these issues, it is proposed to secure free higher education, grant legal and administrative independence to universities, and offer affordable courses by effectively utilizing physical and human resources. This will develop additional revenue streams and benefit all stakeholders. By improving this system and integrating with foreign universities and training institutions, Sri Lanka could become a Centre for Knowledge, expanding opportunities for international students to complete their education in Sri Lanka and becoming a leading sector for foreign exchange earnings.

Sri Lanka has achieved a notable position in health indicators due to its establishment of free health services, leading to increased international recognition for its healthcare services and professionals. However, the migration of health professionals is rising due to international demand. To address this, there is potential to transform Sri Lanka into a centre for internationally recognized health services by elevating the quality of free healthcare provided.

Strategies will be developed to deliver healthcare to both local and foreign communities efficiently and economically. This includes managing free healthcare facilities securely and introducing healthcare innovations that leverage existing physical and human resources.

Similarly, Ayurvedic medical services can be enhanced to generate economic benefits. It is proposed to capitalize on Sri Lanka’s potential to become a leading centre in healthcare-based tourism.

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Sri Lanka approves visa-free facility for citizens of 35 countries

The Cabinet of Ministers has decided to allow visa-free entry to Sri Lanka for citizens of 35 countries, including the United Kingdom (UK), United States (US), Canada, Germany, Australia, Saudi Arabia, China, India, Russia, South Korea, and Japan.

This new visa-free policy will be in effect from October 01, 2024, and will remain in effect for a period of six months.

List of countries to be offered visa-free access to Sri Lanka:

  1. United Kingdom
  2. Germany
  3. Netherlands
  4. Belgium
  5. Spain
  6. Australia
  7. Denmark
  8. Poland
  9. Kazakhstan
  10. Saudi Arabia
  11. UAE
  12. Nepal
  13. China
  14. India
  15. Indonesia
  16. Russia
  17. Thailand
  18. Malaysia
  19. Japan
  20. France
  21. United States
  22. Canada
  23. Czech Republic
  24. Italy
  25. Switzerland
  26. Austria
  27. Israel
  28. Belarus
  29. Iran
  30. Sweden
  31. South Korea
  32. Qatar
  33. Oman
  34. Bahrain
  35. New Zealand
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Sri Lanka train tickets can be purchased online now

The issuance of train tickets online has been effective since yesterday (22).

Passengers can now purchase digital train tickets through the website www.pravesha.lk eliminating the need to wait in queue. Tickets will still be available at counters for those who prefer to purchase them in person.

“We plan to introduce this online system for season tickets before the end of this year. Additionally, new methods for train seat reservations and goods transportation will be rolled out over the next three months,” the Transport Ministry Secretary said.

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Two new ministers appointed

Parliamentarians Vadivel Suresh and Ali Zahir Moulana were sworn in as ministers before President Ranil Wickremesinghe today.

Samagi Jana Balawegaya (SJB) Badulla District MP Vadivel Suresh was sworn in as the State Minister of Labour.

Meanwhile, Sri Lanka Muslim Congress (SLMC) Batticaloa district MP Ali Zahir Moulana was sworn in as a Non-Cabinet Minister of Development Projects.

In December 2023, MP Vadivel Suresh was removed as the SJB’s Passara organizer and was later appointed as a Senior Advisor to President Ranil Wickremesinghe. MP Vadivel Suresh has pledged his support for President Ranil Wickremesinghe in the 2024 Presidential Polls.

Last week, MP Ali Zahir Moulana pledged his support for the President in the upcoming polls. His support for the President comes despite the SLMC led by MP Rauff Hakeem having announced plans to conditionally support Opposition Leader Sajith Premadasa.

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Nandalal Weerasinghe ranks among top Central Bankers

Sri Lanka’s Nandalal Weerasinghe is among the Central Bankers earning an A grade in the Global Finance Central Banker Report Cards 2024, according to gfmag.com.

The others are: Brazil’s Roberto Campos Neto, Chile’s Rosanna Costa, Mauritius’ Harvesh Kumar Seegolam, Morocco’s Abdellatif Jouahri, South Africa’s Lesetja Kganyago and Vietnam’s Nguyen Thi Hong.

They earned the highest grades, “A+”, “A” or “A-”.

The Central Banker Report Cards grade the central bank governors of nearly 100 key countries, territories and districts, as well as the European Union, the Eastern Caribbean Central Bank, the Bank of Central African States and the Central Bank of West African States.

Grades are based on an “A+” to “F” scale for success in areas such as inflation control, economic growth goals, currency stability and interest rate management. (“A” represents an excellent performance, down through “F” for outright failure.) “Central bankers have waged war against inflation over the past few years, wielding their primary weapon: higher interest rates. Now, countries around the world are witnessing the tangible results of these efforts, as inflation has dropped significantly,” said Global Finance founder and editorial director Joseph Giarraputo.

“Global Finance’s annual Central Banker Report Cards honor those bank leaders whose strategies outperformed their peers through originality, creativity and tenacity.”2024 Best Central Banker

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SJB MP Thalatha Atukorale resigns from Parliament

Samagi Jana Balawegaya (SJB) MP Thalatha Atukorale addressing Parliament said that she will be resigning as a Member of Parliament today, citing various differences of opinion within the party.

Atukorale said that members of the Sri Lanka Podujana Peramuna who were previously branded as corrupt politicians, have now joined the SJB, prompting her decision.

The MP announced this decision delivering a special statement in Parliament today.

“If Sajith Premadasa remained patient for another five years for the sake of his own political future, we would not have faced this challenge. I tell Sajith Premadasa, that those pushing you towards this abyss, only want to enter Parliament next time, they don’t want to make you President,” Atukorale said.

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New development bank to give collateral-free loans – AKD

The NPP Presidential candidate Anura Kumara Dissanayake, said that a new development bank will be established and new businessmen and entrepreneurs will be given collateral-free loans to develop their industries.

“We are starting a new development bank. Any youth aspiring to start a business should give a business plan. After considering the project report, if it is a viable project, the government will give a guarantee to the bank. Then the young person will get a collateral-free loan,” he said addressing a NPP rally in Akurana.

He said the business plan will be perused by the project officer of the relevant district secretariat and also will follow its initiation and progress.

He said this is the concept of National People’s Power to bring new entrepreneurs to the fore.

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Former Western Provincial Council member Jayantha De Silva passes away

Former Western Provincial Council member Jayantha De Silva has passed away.

Jayantha De Silva was 78 years old at the time of his demise.

At the time of his passing, he was working as the co-organizer of Borella for the Samagi Jana Balawega (SJB).

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No bail for Keheliya again

Former Health Minister Keheliya Rambukwella and three (03) others, who were implicated in the alleged importation of substandard Immune Globulin vaccines, have been further remanded.

The Maligakanda Magistrates Court today further remanded the suspects, including the former Health Minister, until August 29.

Former Health Minister Keheliya Rambukwella is currently under remand custody after being implicated in the alleged importation of substandard Immune Globulin vaccines.

Several Health Ministry officials, including Keheliya Rambukwella, were arrested and remanded after the Criminal Investigations Department launched an investigation into allegations that a pharmaceutical company had imported 22,500 vials of substandard Immune Globulin vaccines by creating forged documents with the assistance of the two senior state officials.

Investigations revealed that financial fraud of Rs. 130 million had occurred via the imports of the said substandard medicine, under the tenure of Keheliya Rambukwella as Health Minister.

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The Scroll of Memorandum detailing the successful conclusion of the Esala Perahera hands over to the President

The Diyawadana Nilame of Sri Dalada Maligawa Pradeep Nilanga Dela, handed over the Esala Perahera Scroll to President Ranil Wickremesinghe this afternoon (20) at the President’s House in Kandy. The Scroll highlights successful completion of the annual Esala Perahera at Kandy’s Sri Dalanda Maligawa (Temple of the Sacred Tooth Relic) and the Satara Maha Devalayas, a magnificent cultural festival celebrated with great reverence for ancient traditions.

Accompanied by the Nilames of Sathara Maha Dawala and Pitisara Dewala, the Diyawadana Nilame of Sri Dalada Maligawa Pradeep Nilanga Dela, arrived at the President’s House in a ceremonial procession. The Diyawadana Nilame was formally received and warmly welcomed by President Ranil Wickremesinghe them at the main gate of the premises.

In accordance with custom, the Diyawadana Nilame formally presented the Scroll of Memorandum to the President.

In keeping with longstanding customs, the President and the Nilames gathered for a group photograph.

President Ranil Wickremesinghe honoured the artists who participated in the Perahera by presenting them with traditional gifts and awards.

The President also provided financial support to the ‘Pitisara Devala’ through the “Esala Perahera Trust” marking a historic contribution of LKR 10.5 million, the highest amount ever given.

Additionally, the President received a copy of the book ‘Sacred Dalada Culture’, compiled by the Central Provincial Ministry of Culture.

At the event, President Ranil Wickremesinghe handed over the special exemption form for the transfer of the ‘Ehelepola Walawwa’ to the Sri Dalada Maligawa in Kandy to the Diyawadana Nilame.

Senior Deputy Postmaster General Rajitha K. Ranasinghe issued a commemorative stamp, symbolizing the historic Sri Dalada Perahera in Kandy, which at 205 mm is the longest stamp in the world. Mr. Ranasinghe presented the stamp to President Ranil Wickremesinghe.

Additionally, a collection of stamps, souvenirs, and first day covers related to the Sri Dalada Maligawa and Buddhist culture was presented to the Diyawadana Nilame for display in the Sri Dalada Maligawa museum.

President Ranil Wickremesinghe extended his gratitude to everyone who supported the Sri Dalada Perahera, particularly the Diyawadana Nilame who was instrumental in organizing the Perahara. He commended all Nilames of Sathara Maha Dewala for their dedication in preserving the historic Kandy Esala Perahara, a festival that is both a religious and national event, and a remarkable cultural celebration that showcases Sri Lankan heritage to the world. He emphasized that it is a collective responsibility to uphold this tradition.

The President also outlined the government’s plans to transform Kandy into a prominent cultural and art hub, focusing on its extensive development.

Addressing the gathering, President Ranil Wickremesinghe further elaborated;

We recently witnessed a highly successful and prestigious Perahera. Organizing such an event is no small task. While various processions are celebrated around the world, each with its own unique cultural traits, the historic Sri Dalada Perahera stands out as particularly significant. This festival is regarded as the premier cultural perahera in the country.

We extend our gratitude to Sri Dalada Maligawa and all the temples involved. As a government, we are committed to supporting individuals like the Diyawadana Nilame in advancing this tradition to new heights. Our goal is to elevate the Sri Dalada Perahara as a renowned religious event in South Asia and integrate it into the tourism industry. This endeavour requires collaboration between the central government, the provincial council, and the Kandy Municipal Council, with contributions from all Nilames of Sathara Maha Dewala, including the Diyawadana Nilame.

Additionally, the Ministry of Cultural Affairs is dedicated to supporting cultural centres that train artists. The Bellwood Institute, established four decades ago, should be developed into an art institute under the National Youth Services Council, providing valuable training and opportunities for local youth. With the on-going Perahara festival, Kandy is emerging as a hub for art and culture, and we are also implementing other initiatives to further enhance the city development.

We are currently in negotiations with Hilton to develop a new hotel while preserving the historical significance of the Bogambara Prison. We are also exploring the possibility of connecting the old post office with the Taj Hotel to create another new hotel. Furthermore, we plan to utilize other lands in the Bogambara area for tourism-related hotels and repurpose the Kandy South Sri Lanka Transport Board (SLTB) for similar use.

There are also plans to modernize the existing Kandy market. Additionally, we aim to develop the Digana and Kundasale areas with a focus on tourism. To support these developments, I have requested the Japanese government to construct the Central Expressway from Galagedara to Katugastota without interruptions, which will contribute to the expansion of the area into a major urban area.

While we are discussing enhancements to Peradeniya Park (Royal Botanical Gardens, Peradeniya), we are not addressing Udawatta Kele Sanctuary at this time. Our plans include attracting tourists to the Dalada Maligawa and Sathara Maha Dewala, and integrating these attractions with religious activities.

We aim to establish Colombo, Galle, Kandy, and Trincomalee as the main hubs of Sri Lanka. Our vision for Kandy is to develop it not only as a hub for culture and the arts but also as a prominent educational hub.

Minister Bandula Gunawardana, Governor of Central Province Lalith U Gamage, Secretary to the President Saman Ekanayake, District Secretary Kandy Chandana Tennakoon, and other distinguished guests were present for this occasion.

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2023 LG Election postponement violated fundamental rights; SC orders immediate polls

The Supreme Court of Sri Lanka has ruled that the President, as the Minister of Finance, and then members of the Election Commission have violated the fundamental rights of the people through the postponement of the 2023 Local Government Elections.

Accordingly, the court has ordered the Election Commission to take measures to hold the Local Government Elections as immediately as possible.

The Supreme Court issued this verdict today (22) after concluding the hearing of the Fundamental Rights (FR) petitions filed against the postponement of the 2023 Local Government elections.

The relevant FR petitions were filed against the postponement of the 2023 Local Government elections, which was initially scheduled to be held on March 09, 2023.

Several groups including the Samagi Jana Balawegaya (SJB), the Centre for Policy Alternatives (CPA), and People’s Action for Free and Fair Elections (PAFFREL), had filed the petitions, seeking an order declaring that the fundamental human rights of the people have been violated by the failure to hold the 2023 LG elections, as previously scheduled by the Election Commissions.

(adaderana.lk)

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LTL Holdings & India’s Petronet LNG Sign MoU, Marking Key Milestone in Sri Lanka’s Clean and Sustainable Energy Transition

A significant milestone in Sri Lanka’s energy sector unfolded today (20) with the signing of a Memorandum of Understanding (MOU) between LTL Holdings Limited Sri Lanka and Petronet LNG Limited India. The MOU focuses on the development of infrastructure for the storage, regasification and supply of Liquefied Natural Gas (LNG) for the “Sobadhanavi” Combined Cycle Power Plant in Kerawalapitiya.

The signing ceremony took place this evening at the Galadari Hotel, Colombo. Chief Executive Officer of LTL Holdings Limited Mr. Nuhuman Marikkar and Chief Executive Officer and Managing Director of Petronet LNG Company Mr. Akshay Kumar Singh signed the agreement on behalf of their respective organizations.

Speaking at the event, Minister of Power and Energy Kanchana Wijesekera highlighted that this initiative is a key part of President Ranil Wickremesinghe’s broader energy strategy. The initiative aims to ensure a continuous and high-quality electricity supply at a minimal cost, ultimately benefiting consumers across Sri Lanka.

The partnership between LTL Holdings and Petronet LNG Limited represents a significant step in Sri Lanka’s efforts to modernize its energy infrastructure, reduce dependence on traditional fuel sources, and transition toward a more sustainable and cost-effective energy future.

Minister Wijesekera noted that, despite the government’s difficult policy decisions regarding electricity tariffs over the past two years, the Ceylon Electricity Board (CEB) has become a debt-free, robust institution. This financial stability has attracted new agreements and encouraged both local and foreign investment in the energy sector.

As an interim solution for LNG supply to the Sobadhanavi Power Plant, the partnership has devised a technical arrangement to import LNG from Petronet’s terminal in Kochi, India, using cryogenic ISO containers. Once the LNG arrives at Colombo Port, it will be transported in ISO containers to the Kerawalapitiya storage and regasification terminal, which will be constructed adjacent to the Sobadhanavi plant.

The first phase of the Sobadhanavi plant is set to be commissioned in August 2024, with the second phase scheduled for the first quarter of 2025. Developed and operated by Lakdhanavi Limited, the power development arm of LTL Holdings, the plant will significantly enhance Sri Lanka’s energy generation capabilities. This project aligns with the government’s vision of a sustainable and economically viable energy future, marking considerable progress in the nation’s clean energy transition.

The use of LNG, a cleaner energy source, will play a crucial role in reducing greenhouse gas emissions, helping Sri Lanka meet its environmental targets. Additionally, the cost efficiency of LNG is expected to lower power generation costs, provide economic relief to consumers, and support the country’s broader economic growth.

Miniter Kanchana Wijesekara further elaborated;

“During the last energy crisis, recognizing the urgent need for electricity in the country, various proposals were discussed to address the crisis and reduce costs, particularly through the use of Liquefied Natural Gas (LNG). As a result, in March of last year, when a delegation including the Secretary to the Ministry of Natural Gas and Petroleum of the Indian Government visited Sri Lanka, an initial proposal for this project was presented.

Following that proposal, the agreement was signed today, marking the culmination of several months of discussions. Within 18 months from now, we aim to deliver the benefits to the people of this country, with the necessary infrastructure development and the supply of LNG to the existing power plant system of the LTL Group, which has already been completed.

Once electricity generation using LNG begins, it will be possible to reduce electricity costs in the country. Power plants running on LNG can reduce costs by at least 40% to 50%. We plan to pass on these savings to consumers, thereby lowering energy costs in Sri Lanka. It is important to acknowledge, however, that this is not an easy task.

We aim to commence power generation activities at the Yugadhanavi and Sobadhanavi power plants at the beginning of 2026. However, the Sobadhanavi plant is expected to be operational by August 28. The reason for this timeline is the need to run the power plants on diesel and fuel oil during the first year before transitioning to natural liquefied gas for power generation. As a result of signing these agreements today, electricity consumers in Sri Lanka will experience significant benefits in the future. This initiative not only offers financial advantages but also helps reduce environmental damage.

We have established a policy to phase out the use of diesel, crude oil, and naphtha. Our plan is to meet 70% of the country’s electricity needs through renewable energy, while the remaining 30% will be supplied using LNG. We are working to create the necessary infrastructure to integrate renewable energy into the electricity grid.

Over the past two years, we’ve faced tough decisions, such as increasing electricity tarriff. We had to choose between allowing 16-hour power cuts or ensuring a continuous electricity supply while managing costs. Ultimately, we prioritized consistent power delivery, even if it meant making challenging adjustments to pricing.

Even a few hours of a power cut can cause significant damage to the economy and disrupt people’s lives, as we all know from experience. By 2022, the Electricity Board had incurred a loss of Rs. 300 billion, which included loans from two state banks and payments due to suppliers. By introducing a fee system that reflects those costs, we have managed to repay a large portion of the bank loans. Additionally, all payments owed to the suppliers operating the power plants have now been settled. It is also worth noting that we were able to pay off all the debts of the CPC due to the difficult but necessary decisions we made.

As a result, we can now reach such agreements and encourage both local and foreign investors to make new investments. Through these efforts, we aim to provide electricity to the people of this country at the lowest possible cost while ensuring a continuous and high-quality electricity supply. My sincere thanks go to everyone who contributed to this achievement.”

Deputy High Commissioner of India to Sri Lanka HE Dr. Satyanjal Pandey;

“Ensuring a reliable, cleaner, and sustainable energy supply is crucial for driving growth and enhancing the quality of life for all citizens. Our joint efforts focus on bolstering energy security in Sri Lanka and reducing energy costs, which serve as key drivers of economic development. Connecting Sri Lanka to emerging regional and global grids, with India as a major transit point, can attract investments to unlock Sri Lanka’s vast green energy potential, generate additional revenue, and position the country as a major energy exporter.

Our current initiatives include the power grid connectivity, infrastructure connections, and a multi-product pipeline, for which discussions are advanced and ongoing. We are also investing in renewable energy projects, such as the solar power project in Sampoor. Both governments are working closely to swiftly turn these shared aspirations into reality. The signing of today’s MOU underscores our continued commitment to building on the strong foundation of our bilateral relationship by collaborating in areas essential to our energy needs and the future prosperity of our people.”

The event was attended by Secretary of the Ministry of Power and Energy Dr. Sulaksha Jayawardena, Chairman of LTL Holdings Limited U.D. Jayawardena, Chairman of the Ceylon Electricity Board Nalinda Ilangakoon, Chairman of the Ceylon Petroleum Corporation Saliya Wickramasuriya along with other ministry officials, government representatives, investors, board members of the two respective companies, and other distinguished guests.

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