President Anura Kumara Dissanayake has announced that the government will shut down non-functioning and redundant public institutions, beginning with agencies like the Sri Lanka Cement Corporation and the Cinnamon Development Department, as part of a sweeping plan to restructure the state sector and rebuild a high-performing civil service.
Speaking on the Sirasa Satana political talk show last night (2 May), the President cited glaring inefficiencies within the public administration system, declaring that the government would no longer maintain institutions that serve no real public purpose.
“Take the Cement Corporation, for example. It exists, but doesn’t even produce a single block of cement. So why keep it? This is why we’re shutting down institutions that serve no purpose,” he said.
He added that several departments had been created not out of public need but to satisfy political interests.
“Consider the Cinnamon Development Department. There’s also a Spices Development Department. But cinnamon itself is a spice! So why do we need two separate departments? These were created just to please certain provincial ministers in places like Galle,” the President remarked, criticising how public funds have been wasted on such duplications.
The President stated that while some institutions may have been useful in the past, many now merely exist on paper, surviving by leasing out assets and drawing state salaries without providing any real service.
“The Cement Corporation owns land that’s leased out to private companies like Holcim and earns rent, which is then used to pay staff salaries. But the corporation doesn’t actually produce anything,” he noted.
The restructuring plan includes merging institutions with overlapping mandates and dissolving those deemed obsolete. The President stressed that this is part of a broader effort to build “a sharp, streamlined administration that knows exactly what its role is and functions efficiently.”
Addressing the state of the public sector, he said:
“Right now, the public sector is demoralised. We need fresh talent. That’s why we’re recruiting 3,000 new, capable individuals into the public service — but strictly through open applications. No recommendation letters from MPs or ministers.”
“If anyone brings a letter from an MP, tell me — those won’t be accepted,” he added.
The President also outlined salary increases already introduced to make public service a more attractive career path, citing that a graduate teacher’s salary has been raised from Rs. 38,000 to Rs. 60,000, a newly appointed doctor’s from Rs. 53,000 to over Rs. 90,000, and a probationary attorney’s from Rs. 50,000 to more than Rs. 96,000. The disaster allowance was increased from Rs. 200,000 to Rs. 1 million.
“We want a high-performing public service. This is our policy — not just a political promise. But to make it work, we need a strong administrative system,” he said.
He also underscored the vital role the public sector plays in supporting private enterprise:
“If the state doesn’t provide clean water, good roads, and efficient administrative services — even the private sector can’t function well.”
“If a businessperson in a village needs water, we must provide it. If they need a road to transport goods, we must build it. If they need tax files or legal documents, the state officer should be able to assist accurately and efficiently,” he added.
President Dissanayake concluded that the reforms were aimed at “rebuilding the country” and ensuring that state institutions serve the people, not political agendas.
