Sri Lanka to Strengthen Public Service With Major Recruitment and New Employee Benefits

Sri Lankan President Anura Kumara Dissanayake announced plans to rebuild the country’s weakened state administrative system by launching a large-scale recruitment drive and introducing new welfare measures for public sector employees. The announcement was made during the presentation of the 2026 Budget in Parliament.

President Dissanayake noted that the public service has faced long-term challenges due to years of limited recruitment. Following a comprehensive review led by the Prime Minister, the government has now approved the recruitment of nearly 75,000 personnel through a regulated and transparent process. These positions will include technical staff, law enforcement personnel, and revenue officers essential for maintaining core government services.

He emphasized that future appointments, promotions, and related human resource procedures in the public sector will be conducted strictly through standardized examinations and service regulations, ensuring equal and fair opportunities without political influence.

The budget also introduces several new financial benefits for public servants. The government plans to restructure the housing and property loan scheme to allow loans up to Rs. 5 million, with concessional interest rates of 4% for the first Rs. 3 million and 2% for amounts between Rs. 3 million and Rs. 5 million. A total of Rs. 500 million has been allocated to support this initiative.

To maintain the sustainability of the Agrahara health insurance scheme, employee contributions will be adjusted. The minimum monthly contribution of Rs. 125 will rise by Rs. 75, while contributions of Rs. 300 and Rs. 600 will increase by Rs. 150 each.

Other welfare improvements include increasing the interest-free festival advance for government employees from Rs. 10,000 to Rs. 15,000, and raising the distress loan ceiling from Rs. 250,000 to Rs. 400,000 at a 4.2% interest rate. An allocation of Rs. 10 billion has been made to ensure the timely processing of these advances.

The President said these measures aim to support public sector workers while improving the efficiency and integrity of state services.