In a move aimed at supporting the country's elderly population, Sri Lanka's government will introduce an additional interim allowance of 3,000 rupees for pensioners starting September, according to State Minister for Finance Ranjith Siyambalapitiya.
In a move aimed at supporting the country's elderly population, Sri Lanka's government will introduce an additional interim allowance of 3,000 rupees for pensioners starting September, according to State Minister for Finance Ranjith Siyambalapitiya.With approximately 700,000 pensioners in Sri Lanka, the cost of this initiative is projected to reach 8.4 billion rupees for the remainder of 2024. The increase in government spending comes as Sri Lanka experiences a rise in tax revenue, attributed to elevated value-added tax rates and improved PAYE tax collections from the private sector.Despite these fiscal measures, the country faces significant challenges. The state sector remains bloated with non-essential positions and military expansions from previous conflicts, while calls for reducing public sector jobs through attrition and adjusting salaries for remaining employees continue. These economic and administrative reforms reflect ongoing efforts to stabilize and revitalize Sri Lanka’s economy amidst complex socio-economic pressures.
