Sri Lanka plans to downsize its public sector workforce from 1.3 million to 750,000 employees due to fiscal constraints, aiming to enhance efficiency through rationalisation, competitive salaries, and digitalisation while improving public asset monetisation and institutional performance.
Sri Lanka must significantly reduce its public sector workforce from 1.3 million to 750,000 employees to address fiscal constraints, according to Senior Presidential Advisor Duminda Hulangamuwa. Speaking at the BARA Awards, he highlighted the Treasury's inability to sustain current expenditure levels and stressed the need for rationalisation, competitive salaries for remaining employees, and digitalisation of services to ensure efficient use of taxpayer funds. While public sector inefficiencies partly stem from inadequate pay, he urged government employees, particularly in finance, to monetize public assets, eliminate red tape, and improve institutional performance without resorting to privatisation. President Anura Kumara Dissanayake has announced plans to increase public sector salaries in the 2025 budget.