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Friday, 23 October 2026
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LANKADISPATCH

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🇱🇰 Sri Lankapolitics/Hiru News•3 min read

Decision to close 34 state institutions to reduce financial burden

Original Reporting by Hiru News
Friday, 23 October 2026 at 15:15
0116
Decision to close 34 state institutions to reduce financial burden
Verified Wire Dispatch PhotoHiru News
Photo credit: Hiru News editorial wire

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The Scoop & Verified Narrative

The Ministry of Finance decided to close 34 state institutions as part of a measure to reduce unnecessary financial burdens in the public sector, according to President Anura Kumara Dissanayake.This statement was made while attending the annual general meeting of the Government Surveyors' Association held in Battaramulla.Although the public service is essential for the country, the financial burden incurred to provide services to the public is very high, the President pointed out.Due to this situation, the government decided to close certain state institutions and merge several other institutions together.The Ministry of Finance already took decisions regarding the closure of 34 institutions, and a special committee was appointed to study and implement this process, the President noted during the event.Current requirements have changed compared to the era when those institutions were established, and today a strong private sector exists for certain tasks that were handled solely by the state sector back then, the President pointed out.Therefore, attention must be paid to whether such tasks should still be carried out by the government itself or if obtaining them from the private sector is more cost-effective, the President explained.Elaborating further, the President shared additional perspectives:"We took a small decision. The public service is essential. However, the financial burden we incur to provide the service is too high. Therefore, we decided to close some institutions and merge some institutions. The Ministry of Finance has already taken a decision regarding the closure of thirty-four institutions, and a committee has been appointed to close them. Even closing them is difficult because it is very complicated. Why were some institutions established? The situation has changed now compared to the era when some institutions were formed.The requirement today is not what it was back then. Back then, only the state sector handled some of those areas. However, today there is a large private sector outside. So, must we do everything ourselves? Or can we abandon some? Is it cheaper for the private sector to take them over?Therefore, our expectation is how professionals should be recruited into the public service, and how we can make this public service an attraction for professionals. Otherwise, our public service will face a major crisis, I believe."

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  • —Decision to close 34 state institutions to reduce financial burden
  • —Reported live by Hiru News editorial desk.
  • —Verified against domestic police and court records.
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Decision to close 34 state institutions to reduce financial burden

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