Sri Lanka News: President Vows No Allowance Hikes Until 2027 Salary Increase; Kandy Resettlement Underway
By Lions Roar Aotearoa News International Desk
KANDY, SRI LANKA — Saturday, February 7, 2026 — President Anura Kumara Dissanayake, addressing a resettlement program in the Kandy District for those affected by Cyclone Ditwah, sent a firm message to the public sector: there will be no increases in allowances until the scheduled salary increments are completed in 2027.
Speaking at the Central Provincial Council Auditorium this morning, the President detailed the government’s heavy financial commitment to state employees, totaling Rs. 330 billion over a three-year phase.
1. The Three-Phase Salary Hike (2025–2027)
The President revealed that the government has structured a massive basic salary increase to revitalize the public service, allocated in equal installments across three years.
- 2025: Rs. 110 billion spent on the initial phase.
- 2026: Another Rs. 110 billion is being disbursed this January.
- 2027: The final Rs. 110 billion will be allocated, completing the Rs. 330 billion total investment.
“We focused on increasing the basic salary because that is what truly matters for the state sector. Having already allocated such a vast sum, I see some are now protesting for this allowance or that allowance. It will not happen,” the President stated.
He clarified that the government would only consider other allowances after assessing the budget impact once the third salary increment is implemented in 2027. Until then, he warned that no amount of protests or strikes would change the decision.
2. Resettlement and Recovery from Cyclone Ditwah
The event also marked the launch of a major housing and compensation initiative for victims of Cyclone Ditwah in Kandy.
- Housing Support: Families whose homes were destroyed are receiving a Rs. 5 million compensation package. The first installment of Rs. 2 million was distributed today.
- Business Relief: Registered businesses and industrialists whose factories or machinery were damaged received Rs. 200,000 each to support their restart.
- Economic Normalization: The President dismissed claims that the disaster would collapse the economy, stating that electricity, roads, and water services have been largely normalized within two months.
3. Legislative Reforms: Rule of Law and Corruption
In a stern warning to those profiting from illegal activities, President Dissanayake emphasized that the “rule of law” is paramount.
- Asset Seizure: He highlighted the Proceeds of Crime Act passed last year, which allows the state to seize properties and assets acquired through illicit means.
- New Laws: New legislation is being drafted to combat organized crime and money laundering in line with international standards.
- PTA Reform: The government is moving to amend the Prevention of Terrorism Act (PTA) and introduce new laws that allow for more effective questioning and prosecution of organized criminals and drug traffickers.
“There is a line of law, and everyone must stay below that line. No one can jump over it,” the President declared.
