Minister of Finance Basil Rajapaksa has proposed a number of recommendations to reduce state expenditure and encourage investments from next year.
Delivering the 2022 Budget, Minister Basil Rajapaksa said the construction of new office buildings for state institutions will be suspended.
The Finance Minister also proposed to reduce the monthly fuel allowances of state sector employees by five litres to slash expenses.
He also proposed to cut telecommunication expenses of state sector offices by 25%.
Furthermore, the retirement age of state sector employees will be increased to 65 years through the 2022 Budget.
Meanwhile, a new salary scheme will be introduced from 2022 for the state sector.
The Minister said due increments will accordingly be ensured through this scheme.