In 2023, the public sector wage bill was 3.4 percent of GDP down from 4.0 percent in 2022 and it rose to 3.6 percent in 2024, the statement said.Under proposed increments it will rise to 3.8 percent in 2024 which will be below the 2022 level.

But tax revenue are expected to go to 15 percent, with motor vehicle imports also relaxed.The salary hike would be made within the recurrent primary expenditure (before interest), of 12.7 percent of GDP.

As a result Sri Lanka would be able to run a primary surplus of 2.3 percent of GDP in 2025 under the IMF program.