State Expansion

Apr 24, 2012 (LBO) – Sri Lanka’s state workers rose 1.1 percent to 1.232 million after falling 7.2 percent a year earlier, with central and local government employees climbing 16,812 to 986,386 though state agency workers fell, official data showed. Analysts say trimming the public sector and paying better wages would reduce the burden on productive sectors.

Workers in state agencies, so-called ‘semi-government’ corporations, statutory boards and authorities fell to 246,091 from 250,017 in 2010.

Central and local government workers rose despite 23,447 people going on pension, as new hires outpaced retirees.

Sri Lanka has a bloated public sector, which costs about half the tax revenue to maintain.

Last year however the wage increases were managed and inflation was also kept low.