The Ministry has issued a circular announcing that the monthly transport allowance of Rs.30,000 paid for the officers who are entitled for a monthly transport allowance will be revised as Rs.50,000 under the terms and conditions to be effective from 1st January 2016.

In the 2016 budget proposals, Minister of Finance Ravi Karunanayake proposed to grant a maximum allowance of Rs.50,000 per month in addition to the fuel allowance to government officers who wish to use their own vehicles.

According to the Minister, the measure was proposed as the government spends a considerable sum on the purchase and maintenance of vehicles due to high cost and inefficiencies involved. He said the new methodology will yield saving of at least Rs.10 billion per year.

The Public Administration and Management Ministry has sent the circular, which was issued on March 9th, to secretaries of all ministries, chief provincial secretaries and heads of departments.

According to the circular, the vehicle which is used should have been registered in the name of the officer or his/ her spouse in order to receive transport allowance.