{
  "id": 10096492,
  "title": "Govt plans to hire 121,000 state workers, redistribute tax revenue",
  "url": "https://urgent.news/2026/09/27/govt-plans-to-hire-121-000-state-workers-redistribute-tax-revenue",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-27T00:06:28.000Z",
  "source": {
    "name": "The Island Sri Lanka",
    "slug": "the-island-sri-lanka",
    "url": "http://island.lk/govt-plans-to-hire-121000-state-workers-redistribute-tax-revenue/"
  },
  "original_language": "en",
  "account": "Sri Lanka plans to hire 121,000 state workers in the upcoming year as part of a strategy to return tax money back into the economy. President Anura Kumara Dissanayake addressed this during a public rally in Akuressa, emphasizing that the hiring will not be an ad hoc process. The government will identify the vacancies, assess their necessity, and ensure the newly hired individuals remain employed.\n\nThe plan includes hiring 10,000 police officers and 23,000 teachers. This move aims to provide economic strength to individuals, both in the police force and as teachers. Additionally, the government intends to offer a special allowance to police, granting them a uniform, baton, and khaki. The government's increased revenue will also lead to a significant boost in capital expenditure, reaching 2,000 billion rupees in the 2027 budget.\n\nHistorically, state revenues in Sri Lanka have been primarily utilized to pay salaries and pensions of state workers. The current plan seeks to redistribute these funds back into the economy, subsequently benefiting the people. However, this approach has its drawbacks. Over the past few years, revenue-based fiscal consolidation has proven ineffective, as spending tends to increase in tandem with revenue growth. This phenomenon, known as Parkinson's Second Law, was first articulated by Nortcote C. Parkinson in 1955.\n\nSri Lanka has been practicing revenue-based fiscal consolidation since 2015, but this strategy eventually led to the nation's default. Economists argue that such policies are counterproductive, as they can lead to higher inflation and monetary depreciation. In an effort to support the population, the government has started offering Aswesuma (income support) benefits, including subsidies for kidney disease patients and extended care for orphans.\n\nWhile the government opposes printing money and inflation, it finds itself under pressure from the central bank and opposition leaders to spend more whenever tax revenues increase. The International Monetary Fund (IMF) also supports Sri Lanka's controversial 5-7% inflation target, which has been a source of concern among advocates for monetary stability. The central bank's inflation target has consistently exceeded its goal, pushing inflation rates to 8% in 2026.",
  "summary": "MONETABRIEF –Sri Lanka plans to hire 121,000 state workers to fill identified vacancies over the next year as part of plans to return tax money to the economy President Anura Kumara Dissanayake has said. For many years employment was restricted to the state service. “We will not hire in a ad hoc manner (hithoo hithoo […]",
  "key_points": [
    "Sri Lanka plans to hire 121,000 state workers in 2027 to redistribute tax revenue.",
    "President Anura Kumara Dissanayake announced the hiring plan during a public rally in Akuressa."
  ],
  "editors_take": "The government's plan to hire state workers and redistribute tax revenue aims to boost economic strength, but economists warn it may lead to higher inflation and monetary depreciation, repeating past patterns.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}