President Anura Kumara Dissanayake has announced an allocation of Rs. 110 billion to implement the final phase of the public sector salary increase in 2027, completing the three-stage salary revision introduced under the Government's first Budget in 2025.
Presenting the 2027 Budget in Parliament today (12), the President said the Government had increased the minimum monthly basic salary of public sector employees by Rs. 15,750 and raised the value of the annual salary increment by 80% under the 2025 Budget.
The total cost of the salary revision is Rs. 330 billion, with its implementation divided into three phases. The final phase will be implemented in 2027, with Rs. 110 billion allocated for the purpose.
Executive Officers' Transport Allowance Doubled
Meanwhile, the Government has proposed doubling the monthly transport allowance paid to certain executive officers in the public service from Rs. 50,000 to Rs. 100,000.
The increase will apply to executive officers entitled to an official vehicle under Public Administration Circular No. 05/2016 who use their private vehicles to perform official duties.
President Dissanayake said the revision takes into consideration rising vehicle maintenance, repair and operational costs.
He noted that encouraging eligible officers to use their privately owned vehicles could also be more cost-effective for the Government than providing official vehicles.
Higher Allowance for Electric Vehicle Users
The Government has also proposed a 150% increase in the monthly allowance paid to public officers who are entitled to official vehicles but use fully electric private vehicles.
The revised allowance will take effect from July 2027 under Public Administration Circular No. 13/2008(V).
The President said the Government had considered requests from public servants across various sectors to revise their allowances in response to rising work-related expenses.
Accordingly, several allowances have been prioritised under the 2027 Budget, while requests for revisions to other allowances will be considered in stages in future Budgets, depending on the Government's fiscal capacity.
