Prime Minister and Finance Minister Mahinda Rajapaksa presenting the second reading of the 2021 Budget in Parliament yesterday, offered a number of relief measures for the public sector.
It was proposed to implement a special loan scheme to provide solar power facilities to reduce the electricity bill costs of public servants.
It was also proposed to grant appointments and transfers of public servants to their villages within their relevant districts.In addition, the non-executive grade staff will be given the opportunity to engage in other employment after office hours and two years’ leave will be granted to employees who wish to work abroad.
In his budget, the Prime Minister also proposed to reduce the maximum interest rate on housing loans and advance loans provided by banks for public servants to 7%.
Further, although pensions are active for public servants, they are limited to the provident fund benefits of certain public corporations as well as the private sector.
The majority of those engaged in manufacturing and services such as agriculture, fisheries, small businesses, self-employment, as well as apparel, tourism, plantations, and foreign employment are only entitled to Employees Provident Fund scheme and have no means of income in their retirement.
The Prime Minister said that in 2012, he proposed to introduce a contributory pension scheme for them. Accordingly, it is proposed to introduce a contributory pension scheme in which such persons are entitled to a pension after the age of 65.
