Govt to phase out ageing vehicle fleet

The Government plans to phase out its ageing fleet of vehicles and outdated computer hardware as part of efforts to improve the delivery of public services, President Anura Kumara Dissanayake said.

Addressing the National Trade Union Conference on Saturday, the President said Sri Lanka had achieved economic stability and must now move towards a new economic path, a people-centred society and progressive politics.

He said the Government spent nearly Rs.25 billion on repairing government vehicles in 2025 alone.

“We have plans to phase out the ageing government vehicle fleet and replace it with a modern one,” he said.

Outdated computer systems would also be replaced with new digital systems, while applications were being developed to enable people to access a range of government services from home without visiting government offices, he said.

The Government had earlier sold SUVs and other luxury vehicles used by the previous administration, citing their high maintenance and operating costs.

The President did not disclose the estimated cost of replacing the government vehicle fleet.

He said existing laws would also be amended to enable the Government to offer higher salaries to attract the talent required by the public sector.

“Several outdated laws, institutions and administrative structures have become obstacles to economic progress,” he said, adding that some institutions would have to be abolished or merged while the mandates of others would need to be revised to meet current requirements.

Digitalisation would be a key component of the Government’s economic transformation programme, with the newly established GovTech institution spearheading the drive, he said.

A Digital Economy Act and a Digital Economy Authority would also be introduced shortly, he added.

The Government has decided to recruit an additional 121,000 public servants, including 23,000 teachers and personnel for the university and health sectors.

The next public-sector salary increase would be granted in January, while the Budget would provide for increases of up to 100% in several essential allowances, the President said.

He said State institutions such as SriLankan Airlines required new management systems and capital investment, while profitable entities such as MILCO would be given greater flexibility in making lower-level appointments.

The tax-free threshold for employees could also be increased from the current Rs.150,000 a month in the Budget to be presented on Thursday, he said, without disclosing the proposed new PAYE threshold.