Sri Lanka’s state agencies have been asked to cut spending, overtime and
no money will be allocated for new hires ahead of a preparing a budget for 2021
as tax cuts and Coronavirus had reduced state revenues.There will be no
provisions for new hires in 2022, Ministry Secretaries and Department chiefs
have been told by the Treasury in a circular.The public sector consumed 84
percent of taxes collected up to April and salaries and wages have exceeded the
increase in tax collections up to April.Sri Lanka has been hiring tens of
thousands of unemployed graduates in an already bloated public service and
giving them lifetime salaries and pensions.Finance Minister Basil Rajapaska had
told cabinet that no new appointment letters will be given, cabinet spokesman
Minister Ramesh Pathirana said.