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Sri Lanka to freeze hiring, halt new projects, target subsidies

Sri Lanka to freeze hiring, halt new projects, target subsidies

Sri Lanka to freeze hiring, halt new projects, target subsidies

Sep 09, 2021  /  By Vision Venture

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.