Sri Lanka public hiring has intensified despite rising taxes and economic pressures following the 2022 default. The government plans to recruit 60,000 new state workers, raising fresh concerns about fiscal responsibility, public spending, and the growing burden on taxpayers.
Sri Lanka public hiring continues as taxes rise after economic default
Sri Lanka public hiring has once again drawn national attention as the government moves ahead with plans to recruit 60,000 state workers in the coming months. This decision follows the appointment of nearly 30,000 workers during the current year, funded through increasing tax revenues collected after the country’s financial default. Minister of Public Administration Chandana Abeyratne confirmed that recruitment processes for the Sri Lanka Administrative Service, Sri Lanka Engineering Service, Planning Service, and Accountants’ Service are already underway.
According to official reports, 226 candidates are currently being selected for the Sri Lanka Engineering Service based on examination results from March 2025. However, the expansion of the public sector has raised questions as Sri Lanka public hiring continues despite the country already having an extensive state workforce of approximately 1.5 million employees. With an ageing population and a shrinking private sector, concerns are escalating about who will ultimately fund pensions, salaries, and state operations through taxes.
Public sector employees continue to receive lifetime pensions that are financed annually through collected tax revenue. Economists argue that Sri Lanka public hiring must be carefully reviewed, especially as many citizens are leaving the country due to inflation, currency depreciation, and a lack of private sector opportunities. Analysts also point out that while the International Monetary Fund promotes revenue-based fiscal consolidation, there has been limited focus on reducing government spending.
This week, the Cabinet approved the recruitment of another 8,547 personnel, mainly for the police force, adding to ongoing Sri Lanka public hiring efforts. Critics warn that without restructuring the public service and reducing unnecessary costs, the tax burden on younger generations could intensify. There is also concern that rising taxes on income, vehicles, and housing are making it increasingly difficult for citizens to afford basic living expenses.
Despite efforts to digitalize public services and fill only essential vacancies, experts insist that Sri Lanka public hiring requires a comprehensive review of cadre structures and productivity. The country defaulted in 2022, and since then, taxpayers have been contributing more to reduce deficits and national debt. While the government highlights that recruitment is targeted and controlled, the long-term financial strain of salaries and pensions remains substantial.
As older workers retire each year, new appointments may still result in an expanded workforce if recruitment exceeds retirements. Economists caution that if Sri Lanka public hiring continues without reform, it could lead to increased migration, higher debt, and deeper fiscal challenges. The situation underscores the importance of policy transparency, spending reforms, and balancing essential public services with taxpayer capacity.