President Anura Kumara Dissanayake said the Government plans to raise the Pay As You Earn (PAYE) tax threshold in the 2027 Budget, which is due to be presented to Parliament next week.
Speaking at the National Trade Union Convention in Colombo on Saturday (7 November), Dissanayake said the Government had previously raised the threshold from Rs. 100,000 to Rs. 150,000. He said the proposed increase would provide further tax relief to salaried workers. He did not specify the new threshold.
Dissanayake said the Government had taken steps to raise basic wages for private-sector employees following talks with employers and business associations. He acknowledged that the increase was too small for workers to feel a meaningful difference and said the Government had also looked at supplementary allowances.
The President said the private sector made a major contribution to the economy and that the Government was committed to protecting the rights and economic security of workers in the public, semi-government, plantation and private sectors.
