Govt to close 34 state institutions to cut public expenditure – President

President Anura Kumara Dissanayake announced on Friday that the Ministry of Finance has finalized plans to close 34 state institutions as part of the government's efforts to reduce public expenditure and alleviate the financial strain on the nation. Speaking at the annual general meeting of the Government Surveyors’ Association in Battaramulla, Dissanayake highlighted the significant increase in the cost of maintaining public services, necessitating a review of the structure and operations of state institutions.

In addition to closing institutions, the government has also decided to merge several entities to enhance efficiency and eliminate unnecessary spending.

A special committee has been established to oversee and implement the closure and restructuring of these institutions. Dissanayake noted that many of these institutions were established under circumstances that have since changed considerably. In sectors where the state had been the exclusive service provider, a robust private sector has emerged.

Consequently, the government needs to evaluate whether certain services should continue to be provided directly by the state or if they could be delivered more cost-effectively by private-sector operators.

The president emphasized the necessity to streamline public-sector recruitment and improve administrative efficiency. Dissanayake stressed that the overarching goal is to cultivate a professional and attractive public service that can address systemic shortcomings while ensuring the judicious use of public funds.