Govt. rules out salary cuts

Cabinet Co-Spokesman and Mass Media Minister Dullas Alahapperuma 

By Charumini de Silva 

The Government yesterday ruled out a salary cut in State or private sector as part of austerity measures to cope with COVID-induced fiscal and economic challenges though there has been suggestions for the move.

“The decision by the Cabinet of Ministers to donate their August salary to the COVID-19 fund is not an attempt to push for a pay cut in the State or even the private sector employees,” Cabinet Co-Spokesman and Mass Media Minister Dullas Alahapperuma said in response to a question posed at the weekly post-Cabinet meeting media briefing yesterday.

However, he acknowledged that some of the Government Ministers and members of the Parliament have appealed for such salary cuts. Government salaries and wages account for 5% of State expenditure. In 2020 it was Rs. 794 billion up from Rs. 686.4 billion in 2019.

In his 25 June address to the nation from Anuradhapura, President Gotabaya Rajapaksa said despite the dire situation caused by the coronavirus pandemic, the Government has never taken actions to reduce the salaries or allowances of more than 1.4 million public servants.

However, President in his last week’s address to the nation cautioned people to be prepared to make sacrifices if the COVID pandemic was to prolong whilst separately Tourism Minister Prasanna Ranatunga too requested for a pay cut. These developments triggered speculation that the Government may be considering a potential salary cut across the board.

The latter was reinforced with the Cabinet of Ministers, SLFP and several Opposition MPs deciding to donate their August salary as means to bolster funds needed to treat COVID-19 patients and to source essential medicines for hospitals.

First of its kind by a political party, Sri Lanka Freedom Party (SLFP) parliamentarians last week decided to donate their August salary to the wellbeing of COVID-19 patients and to supply oxygen to hospitals. Samagi Jana Balawegaya (SJB) parliamentarians also offered to donate their August salaries to buy medical equipment needed to treat COVID-19 patients.

On Monday, the Cabinet of Ministers unanimously approved a proposal submitted by Prime Minister Mahinda Rajapaksa to offer their August remuneration to assist COVID-19 containment measures in the country.

Govt. rules...

Last Friday, Tourism Minister Prasanna Ranatunga suggested to President Gotabaya Rajapaksa in writing to slash salaries in order to support those who rely on daily wages.

Ranatunga suggests slashing 75% of the salary of parliamentarians, 50% from the public and private sector (except healthcare sector) employees and 30% from minor workers during the period of the lockdown, so as to support daily wage earners.

Since the inception of the COVID-19 Fund, all Cabinet Ministers have donated Rs. 10,000 monthly from their salaries, while representatives in the Provincial Council and Local Government too have contributed. This was a collective decision of all members of the Sri Lanka Podujana Peramuna (SLPP) to donate to the COVID-19 fund.

“No one was forced or pressured to contribute to any fund. I vehemently deny such allegations. There is no truth in such reports,” Alahapperuma stressed.