Sri Lanka plans 121,000 public sector hires to boost domestic consumption

President Anura Kumara Dissanayake announced that the government intends to recruit 121,000 new state sector employees over the coming year. This recruitment drive reverses years of hiring restrictions that left public services understaffed. The administration views the measure as an economic intervention designed to channel tax revenue back into the national economy through public sector wages and spending.

The government's rationale is that injecting salaries into a larger public workforce will stimulate domestic consumption and help revive economic activity at the grassroots level. This initiative is part of efforts to boost economic activity as Sri Lanka navigates recovery from the severe financial crisis that gripped the island nation in 2022.