Rajapaksa Boosts Salaries, Pensions targets tax evaders
Posted on October 24th, 2014

Special Budget News

Sri Lankan President Mahinda Rajapaksa is banking on South Asia’s fastest economic growth to boost spending on pre-election handouts without halting a record improvement in public finances.He unveiled plans to narrow the budget deficit to an almost 40-year low of 4.6 percent of gross domestic product amid an expansion rate of about 8 percent.

Rajapaksa set the minimum wage for state workers at 15,000 rupees ($115) a month, while raising a cost of living allowance to 10,000 rupees, and pledged to eradicate salary anomalies among railway employees. He offered a guaranteed price of 60 rupees a liter for milk and raised that for paddy to 40 rupees per kilogram from 34 rupees while keeping fertilizer subsidies.

Treasury Secretary P.B. Jayasundera, the architect of the budget, said it was a measure bringing the island nation nearer to an “advanced middle income economy with social security”.

“The policies are aimed at further consolidation towards broad-based growth-oriented development towards 2020,” Jayasundera told Reuters.

The International Monetary Fund has long asked Sri Lanka not to curb public investment to achieve its budget deficit target, but Rajapaksa wants to cut the deficit to 3.0 percent of GDP by 2017. He said next year the country, which in 2009 ended a 26-year civil war, could have per capita income of $4,000. Per capita income stood at $1,200 in 2005

While delivering the 2015 budget, President said as former national leaders had placed special emphasis on agricultural development in the past, he has placed  new livelihoods and new prospects for the youth and children after the end of the war. Economy has grown by 8% as a result of developments in investment and tourism  and President said the country will reach 4000 USD per capita income target by 2015 – a year earlier than expected.

Per capita income  also to be reached 7500 USD by 2020 – turning SL into a high middle income country and  the budget deficit to be reduced to 3.85% by 2016 and 3.2% by 2017.

Budget Highlights;

  • 47 out of 54 state institutions have been turned into profit making establishments
  • Unemployment among youth aged between 18 – 30 dropped from 15% to 13.1%
  • Over 1.1 million tourist arrivals and rapid development in the tourism sector
  • Several expressways to be completed by 2017 including Ruwanpura and Northern highways
  • Defense budget dropped from 5.5% to 3% and the funds were channeled rural infrastructure development
  • Several international summits held in Sri Lanka during the past year and the manner in which were were able to defeat the agendas of a handful of individuals in the local and international arenas attempting to promote extremist schemes against SL using the UNHRC, reflects the excellent foreign relations we have managed to maintain
  • Need to develop programs that promote education, health, and eradicate poverty – local government including district and provincial councils to be stregthened to achieve these goals
  • President asks TNA to unite with the government
  • Hostel facilities to be provided to over 25,000 undergadutes / salaries and research allowances of academics increased by twofolds
  • A total of 750,000 houses given to low income families apart from the renovation of low income and disaster/conflict affected homes
  • New taxes imposing with effect from tonight will encourage competitive industries
  • Export revenue to exceed 11,500 million USD this year
  • Number of individuals migrating for employment dropped 22% this year – 7000 million USD income to be generated through migrant workers
  • Life expectancy to reach 80 years by 2020
  • 100,000 undergradutes to be accepted into national universities by 2020
  • 2020 export aim to be 20 billion USD
  • State sector expanded to 1.3 million
  • 100 USD tax to be charged as entrace fee in Casinos
  • VAT to be reduced to 11% – payee tax limited to 16%
  • A special Tax Scheme for  the motor vehicle imports instead of the current system.
  • Income tax and Customs Departments systems to be computerised with effect from tomorrow and online services to be offered
  • Proposal made to increase the minimum salary of a private sector employee to be Rs. 10,000 by 2015 / Rs. 500 allowance to be added each month and the EPF payment from the employer to be increased upto 14%
  • Special allowance of university academics, doctors and judiciary service employees to be increased
  • Minimum salary of a state sector employee to eb increased upto Rs. 25,000 inclusive of an increase of upto Rs. 2,200 in the cost of living allowance
  • EPF payment from the employer to be increased to 14%.
  • Suggest reasonable salary increase for private sector employees, too.
  • Special allowance of state sector employees to be added to their salary/ minimum salary of a government sector worker to be increased upto Rs. 15,000
  • Parents whose children are serving in the military and Police to be paid Rs. 1000 monthly with effect from January 2015
  • A special monthly allowance to be paid to widows of July strikers Electricity tariffs for hotels and shops to be reduced with effect from November, 2014
  • Pension and insuarance scheme for trishaw drivers
  • 3000 monthly allowance for differently-abled persons and Rs. 750 to be paid monthly as transportation allowances for differently-abled children
  • Monthly allowance given to elders to be increased upto Rs. 2000 with effect from January, 2015
  • 1200 million to be allocated to construct a new shopping complex comprising of 1500 shops in Pettah
  • Sri Lankan expats to be granted the facility to import a vehicle worth 60% of the total annual foreign revenue they bring into the country, inclusive of tax concessions
  • A special pensions scheme to be introduced to migrant workers
  • Samurdhi allowance to be increased – Rs. 3000 monthly for a family with four or more/ Rs. 2000 monthly for a three-member family/ Rs. 1000 for families with less than three members
  • Financial allocations made to develop research facilities in national universities
  • Aerospace Engineering Unit will be established at the Moratuwa University
  • Mahapola schoarship stipend to be increased upto Rs. 4000 by 2015
  • 50,000 scholarships to be given to students from low income families unable to enter universities/ every student to be given Rs. 3000 monthly allowance
  • Teaching assistants to be paid a monthly allowance of Rs. 9500
  • A school based new teacher recruitment scheme to address the teacher shortage in schools.
  • 1500 million allcoaed to develop sanitation and other facilities of rural schools/ 2Grade five scholarship beneficiaries to be given Rs. 1500 instead of Rs. 500 they receive
  • Rs: 2500 monthly allowance for pre-school teachers
  • Every citizen to be provided a full medical checkup – Rs. 500 million allocated for a special programme to carry out early detection of various diseases
  • 3000 monthly allowance to be provided to those afflicted with the Kidney disease
  • Price of yoghurt and milk powder by local manufacturers to be dropped by Rs. 3 and Rs. 100
  • Special programmes to be implemented to improve the quality of life for women and children from fishing communities
  • Pension scheme to be introduced for Apparel sector employees
  • 150 million for SriLankan Airlines and Mihin Lanka for 2015 and Bank of Ceylon to be recapitalised by Rs. 10 million by 2015
  • Several proposals and financial allocations made to develop and uplift tea, rubber and coconut crops
  • Cess tax on rubber imports to be increased by Rs. 10 per kilo
  • President while stating that crop damages by wild elephants will be compensated however said that no elephant is capable of harming the government,in response to an opposition comment
  • Motorcylces to be provided to postmen at concessionary rates.
  • Rs .2000 million additional funds to be allocated to resolve salary anomalies of railway employees
  • Sri Lanka to be a member of a Chinese bank that comprises of 22 other member states
  • 17 billion to be allocated during 2015 – 2017 for airport renovation and developments
  • 500 small buses to be imported
  • 17 billion to be allocated during 2015 – 2017 for airport renovation and developments
  • Charges of the first 25 units of household water supply to be reduced by 10%

17 Responses to “Rajapaksa Boosts Salaries, Pensions targets tax evaders”

  1. NeelaMahaYoda Says:

    Promising news about government economic performance. This inevitably will ensure employment opportunities, food security, with particular emphasis on low income and poor families. UNP could never even dream about such a success story with money borrowed from the International Monetary Fund which always insist on curbing public welfare expenditure to achieve its budget deficit target, but Rajapaksa wants to cut the deficit to 3.0 percent of GDP by 2017 with welfare intact. Even He said next year the country, could have per capita income of $4,000. Well Done Mahinda

  2. NeelaMahaYoda Says:

    2015 වසර සඳහා වූ අයවැය යෝජනාවලිය පැය තුනක පමණ කාලයකින් අවසන් කරමින් ජනාධිපතිමහින්ද රාජපක්‍ෂ මහතා විපක්ෂයෙන් ඇසුවේ ‘කොහොමද ගොඩේ බයියාගේ අය වැය යනුවෙනි’. විපක්‍ෂයේ කිසිවෙක් ඊට පිළිතුරු නුදුන්හ.
    After presenting the 2015 Budget in Parliament, President Mahinda Rajapaksa asked the opposition, “How is the Budget presented by the country bumpkin.

  3. Mr. Bernard Wijeyasingha Says:

    Great list. Wish it included investment in the following areas:

    -railway transportation of people and goods including a subway system for Colombo. Railways are the most efficient cheap mode of mas public transportation and movement of goods. the only cheaper way for transporting goods within Sri Lanka is to develop river transportation.

    -Develop processing and polishing of the world diamond market. It is one of the most lucrative. India is now a major player in it. Sri Lanka already has the talent for processing and polishing precious stones. It would be a natural industry for Sri Lanka

    -Develop refining of crude oil. Sri Lanka is best situated to refine crude oil from Middle Eastern nations for export to the Pacific region. It too is a highly lucrative market.

    -Invest in Emerald and diamond mines in other nations to supplement Sri Lanka’s Gem stone industry. It alone is one of the most profit making sectors of Sri Lanka. This includes developing pearl beds within Sri Lankan waters. Pearls are highly sought after in the Western world.

    -Develop an arms industry. It would be both profitable and free Sri Lanka to some degree from importing these items.

  4. aloy Says:

    One swallow doesn’t make a summer; that too at the eve of an election. Corruption, nepotism, mismanagement and lawlessness is the norm. Give another term forgetting all these, it will truly be a banana republic in the next six years.

  5. Lorenzo Says:

    SL celebrates 2 years without Malaria for the first time!

    This is very good. Malaria used to kill thousands years ago.

    Health minister to the PM post.

  6. aloy Says:

    Put on the regalia, throw away the fig leaves (like fancy budgets), make necessary changes to the constitution and rule like a just and true Sinhala Buddhist king for two more years and we will vote for you for ever.

  7. Lorenzo Says:


    What you say is CONTRADICTORY to an extent.

    “…. nepotism……… is the norm.”

    “make necessary changes to the constitution and rule like a just and true Sinhala Buddhist king for two more years and we will vote for you for ever”

    TRUE SINHALA BUDDHIST KINGS also had NEPOTISM. They made their sons, brothers, cousins, DEPUTY KINGS and KINGS after them!! It had GOOD and BAD. But that was how it was.

    So when it comes to NEPOTISM, MR is equal to a true Sinhala Buddhist king. Leave out the NEPOTISM bit if you want to compare.

  8. NeelaMahaYoda Says:

    The word “corruption” is frequently used in Sri Lanka to attack your political opponent. In any case, Aloy, if you have any solid evidence to prove that the present government is involved in any sort of corruption, you must send that information to any of the opposition MP representing UNP and JVP to raised that in the parliament. If you don’t have any then you are just spreading rumours.
    However, it is true that corruption has already crippled social well-being and economic growth in Sri Lanka and has run rampant both in politics and in the state structures that provide basic services to ordinary people.
    Unfortunately, the Politicians on both sides of the parliament in Sri Lanka are very reluctant to introduce new legislation to arrest these major social menace.
    So it is very important that we elect politicians who are willing to tackle this social problem. It should be part of the election manifesto of all political parties.
    This can be done through creation of a solid legal framework like the federal bribery, graft, and conflict-of-interest crimes contained in Title 18, Chapter 11 of the United States Code, 18 U.S.C. §§ 201–227. Legislation should be introduced make it compulsory for Politicians to publish asset declarations. A strong national code of conduct should be introduced making ware of the legality related to conflicts of interest specifically in dealing with financial transactions both in public and private sector. In order to support these legislations, it is also important to create a National Anti-Corruption Bureau with investigatory powers to centralise the bribery commissioner’s office that currently has the task to investigate and prosecute corruption, but too often fail to make it functional.
    So don’t blame one party. They all do it when they get power.

  9. Lorenzo Says:

    Neela is right.

    Govt. has already taken action on CORRUPTION against 104+ PC members since 2005! A LOT needs to be done but some action for a change from previous governments is good.

    Out of the WORST acts of corruption, 44 are from UPFA, 36 from UNP, 2 from JVP.

    IF UNP and JVP can do corruption WHILE IN THE OPPOSITION, imagine how corrupt they will be IF they were in ruling party!!!

    So no one can blame UPFA alone for corruption.

    As I have said corruption is a STRUCTURAL problem not a political problem. Pot calling the kettle black cannot resolve corruption.

  10. Marco Says:

    What ever happened to the COPE investigations and recommendation?
    We have a Treasury Minster who was disqualified by the highest court (SC) to hold public office.

    With regards to Legislature, who ultimately holds the strings?

    I agree with you that “checks and balances” should be put in place but by who? and who undermines these?

  11. Nanda Says:


    “So don’t blame one party. They all do it when they get power.” – a very negative statement. True that greed,anger and delusion rule the world but we must be hopeful of someone and some party with minimum corruption.

    At the moment, we are compelled to vote for a man with Maximum Corruption in the history of Sri Lanka.
    How pathetic ?

  12. aloy Says:

    Nanda and Lorenzo,
    “At the moment, we are compelled to vote for a man with Maximum Corruption in the history of Sri Lanka.”

    This exactly is our predicament. We are caught between the devil and the deep blue sea. MR is the devil and Runil is the other. I wrote my above two comments in desperation. So, they may not be coherent when taken together.

  13. aloy Says:

    White vans are still lurking.

  14. Lorenzo Says:



    If we restrict to parties, corruption can NEVER be resolved. It is ACROSS parties. MR is NOT in charge of corruption.

    I have given you evidence even opposition bugs are doing corruption. It is STRUCTURAL.


    “White vans are still lurking.”

    UNFORTUNATELY no! You talk like an LTTEer now. MOST vans in SL are white!

    White vans were a godsend because they abducted and destroyed LTTE terrorists trying to bomb Colombo. Ever wondered why VERY FEW large bombs went off in Colombo from 2005 to 2009 despite a MASSIVE WAR? White vans. The REAL ones.

    GOVT never used “white vans” against PEACEFUL political opponents.

    Other abductions blamed on white vans where the VICTIM came home ALIVE (LOL!!) are SELF STAGED DRAMAS.

  15. Ananda-USA Says:

    To people who are dead set against MR for the simple reason that he stands in the way of their achieving their own narrow political and greedy ambitions at the nation’s expense, as they had for 30 long years bringing Sri Lanka to its knees, President Mahinda Rajapaksa CAN DO NOTHING RIGHT.

    Accordingly, President Mahinda Rajapaksa should IGNORE these JAUNDICED die-hards and concentrate on looking after the VAST MAJORITY of PATRIOTIC Sri Lankans in his care.

    It will give me IMMENSE JOY to contemplate the FRUSTRATION of his opponents come January, 2015, when MR is RE-ELECTED President AGAIN!

    Finally, DEMONSTRATED MERIT & ABILITY is being GENEROUSLY REWARDED by the people of Sri Lanka! Jayawewa Sri Lanka, my Resplendent Isle, my Ratna Bhoomi, my Vijaya Bhoomi!

  16. Nanda Says:


    Please listen , watch and see fro yourself how Rajapaksas serve the Sinhala Biddhists in the East. We are loosing east fast.


  17. callistus Says:

    Ananda this Nandawathie is Mangala’s stooge. She gets paid to surf the internet 24 hours and make anti Rajapakse comments. Lanka web was invaded by these people. This forum now publishes LTTE stuff as well. these people must be exposed.

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