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Efficient public sector operations possible with fully digitalized workforce of 200,000: Suresh Shah

2 February 2024 06:24 am - 26     - {{hitsCtrl.values.hits}}

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By Nishel Fernando

The public sector can smoothly run with a workforce as low as 200,000 persons through digitalization, against the current public sector workforce of 1.3 million, according to the Head of State-Owned Enterprises Restructuring Unit (SOERU) Suresh Shah.

He noted that even without digitalization, the public sector workforce can be cut by half and the public services can be maintained efficiently.

Sri Lanka’s bloated public sector shrunk by 135,000 to 1.393 million by the end of 2022 from 1.401 million in 2021 and from 1.528 million in 2020 as the government started to reduce the excess cadre while freezing recruits.

Shah claimed that if the public service is fully digitalized, the public sector cadre could be brought down to 200,000 people.

However, Shah was quick to rule out any radical move to reduce employment in the public sector.

“You can’t put people out in the streets, it will create economic and social chaos,” he said, speaking at a seminar organised Organization of Professional Associations of Sri Lanka (OPA) on Wednesday.

Further, he noted that it would lead to an economic slump with a large number of people losing their incomes.

Shah asserted that such a move should be done in a phase-out manner, in coordination with the private sector in creating opportunities to absorb this excess labour.


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  Comments - 26

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  • Sivalingam Friday, 02 February 2024 06:45 AM

    Shah is another Cabraal.

    DD Friday, 02 February 2024 03:30 PM

    Siva, buddy, you couldn't be more off-base here! Mr. Shah is a strategic genius, no doubt about it. I've witnessed his brilliance back in the Lions brewery and Carson days myself. Picture this: if we had just 10 more Shahs of his caliber, we'd be giving Singapore, Malaysia, and Thailand a run for their money! Mr. Shah's assessment is spot-on. Mr. Shah, it is time to push the government to set up vocational training programs. We can export world-class carpenters, mechanics, plumbers, nurses, and agriculture is another goldmine waiting to be tapped.

    Suren Friday, 02 February 2024 09:28 PM

    Siva is totally uninformed. May be useful to google search Suresh Shah and educate oneself. He has been a successful corporate head and a stayer in companies rather than jumping aroun like a frog. So the success or otherwise of his corporate life can be better assessed.

    Tissa Fernando Friday, 02 February 2024 10:08 PM

    Siva I think you are a retired old school former government clerk . That is why you cannot stand brilliant persons like Shah.

    Kishu Gomes Friday, 02 February 2024 06:46 AM

    Shah, what you gonna do when the JVP comes for you?

    Tissa Fernando Friday, 02 February 2024 10:36 PM

    If JVP has smart intelligent people who are really interested in developing the country, then they should make use of these brilliant persons like Shah. Based on your question, we can imagine what it will be like to live under your JVP government.

    VJ Friday, 02 February 2024 07:40 AM

    Sri Lanka needs an ERP system and an accounting system such as IPSAS, a public standard accounting system used by many developed countries. There are thousands of unfilled vacancies, these should be abolished and the funds redeployed to other most needed areas. Duplication of functions could be eliminated, corruption can be controlled, wastage could be eliminated.

    Nilame Friday, 02 February 2024 07:44 AM

    So what will others do for their food? Look up and wait for manna to fall from Heaven? AI will destroy the livelihood of many people.

    Siva Manokaran Friday, 02 February 2024 07:47 AM

    Mr. Shah who is too give employment for government cronies? Who have no qualification or work experience. Most importantly do you think the masses of Srilanka are familiar with digital service that they would be able to use it and benefit flawlessly? No wonder Srilanka has gone to dogs with these kind of pundits who cost an arm and a leg to give none practical advice.

    Tissa Fernando Saturday, 03 February 2024 02:05 AM

    Siva, digitalisation is not the future it is the present, if you are not using the benefits of digitalisation you are still living in the past. So your future is bleak or none. So ,if you are clueless about IT, I suggest that you either go and become a paid protestor to a political party or go online and learn IT from DP Education site which is free.

    Fred Friday, 02 February 2024 08:08 AM

    Private sector is interested in profit not philanthropy doubt many will fit the private sector model in terms of skills and background. Having said that Iam all for a more efficient public service but have to face reality.You may be putting people out of employment for life, those who can least afford to lose their jobs,. so think of retraining redeployment.Digitalisation has its virtues but it can also mean centralisation and control even loss of freedoms

    Chanaka Friday, 02 February 2024 09:31 PM

    Does that mean that the government has to be providing them employment, merely because they are useless elsewhere?

    Sambo Friday, 02 February 2024 08:17 AM

    The public sector was increased by Mahinda for the sake of votes and not a man power requirement.

    nadarajah Friday, 02 February 2024 08:22 AM

    very narrow minded statement as people should be given specific assignments and performance based salary and increments implemented in the public sector so that country will benefit . Digitalisation has its limitations in Asian countries as we cannot face social issues/riots due to high unemployment

    Tissa Fernando Friday, 02 February 2024 10:06 PM

    You too are narrow minded and has probably not lived in a developed country. Digitalisation opens up new array of jobs and opportunities for people. Think about massive direct and indirect savings from the efficient operations. Dear Suresh Shah, please study how UAE has done complete Digitalisation of government services and made it very efficient and effective.

    Dee Friday, 02 February 2024 08:29 AM

    Good luck doing that. The ‘common people’ needs state jobs. With our new NPP government, everyone will be ‘common’ . Everyone will go ‘ublick’

    K. Kumar Friday, 02 February 2024 08:46 AM

    Oh, no!! That will not work!! Pray, then how will our politicians buy the votes of the masses without the promise of rent-seeking Govt jobs!!!

    Tissa Fernando Friday, 02 February 2024 08:49 AM

    Surest Shah is a very dedicated professional and his approach is correct. But what do you do with these excess staff. First of all , they will resist all digitalisation projects. They will not be ready to learn new things. So they will use the new systems in the old manner. So it will be double the expenses. Best thing is to retrain existing staff with new skills and not replace those who retire from the service. Digitalisation should make the processes simpler. But some Digitalisations even in the private sector create more work. Look at the TIN process. It asks for all the information about you and your family although most of these information are already available with the Identity card database. Current TIN registration process is too much detailed and too many documents are required which creates more work and costs more. So these projects should be done properly overcoming sone of these challenges.

    Next will be over crowded 3 wheel drivers! Friday, 02 February 2024 09:05 AM

    Do we blame our education system or the vampire politicians who are interested in vote bank? Every one of our youngster has some talent, but they don't know how to use it. Politicians and bureaucrats just dumped them in some job and forgot them. They are of no use to themselves nor to the nation!

    Ram Friday, 02 February 2024 09:05 AM

    Of the 1.3 Million Public servants 12-15% could be on leave at any given time. The work assigned to others is such that in the private sector each employee does double the work each public sector employee does. So reduce the numbers and give them tasks to complete.

    Sam Friday, 02 February 2024 09:21 AM

    Suresh yes we know this, but can you tell the uneducated politicians this?? They don't have any idea otherwise we won't be in this situation. Look at India how educated the politicians and the country matters to them. Not our idiots.

    Bob seag Friday, 02 February 2024 10:51 AM

    Fully digital or half digital what sri lanka need is to stop corruption theft misleading Bribery if thats done you can double the employees so that you have enough money to pay if ABCD is not control all government sector's will run on empty .

    Lionel Friday, 02 February 2024 11:14 AM

    This should have happened million years ago. SL public service is unskilled, inefficient, does not have English competency , IT competency and writing skills and does not do any work. SL needs field workers on the ground such as helping out farmers and less and less workers in CPC, CEB, Water Board etc. Main obstacle to digitise public service is the useless politicians and the fact that it reduces corruption opportunities for lazy public service bumps.

    Kays N Friday, 02 February 2024 11:58 AM

    What has this guy been drinking? His comments will awaken 1.1mn sleepinh lions! Mr. Shan should watch the teleseries 'Mr. Bates vs the Post Office.' If the UK govt who are demonstrably more competent than our politikkas--(e.g. the UK could carry out a state funeral, investiture and installation of the new King without inconveniencing the travelling public by having the armed forces rehearse at night), be fooled by Fujitsu's buggy IT system for more than 25 years, what chance our local digital genius and failed procurement systems (think immunoglobin and other meds) working at all?

    Sokrates Friday, 02 February 2024 04:54 PM

    This man understood the situation correctly. Other experts assume that without digitalization, the public sector workforce can be reduced by 70 percent, as I would also recommend. This also works with countries that can be compared to Sri Lanka. First, those who have been dumped by politicians in the civil service for selfish reasons should be fired, then those who have falsified their documents and those who have never passed a civil service entrance exam and therefore do not have the required qualifications. It's hard to estimate but I think these groups make up 30 percent of the public service, but probably more. Many commentators here worry about the social incompatibility of mass layoffs. On the other hand, it is an unreasonable expectation that the taxpayer should pay for this injustice. The remaining 40 percent of those to be laid off should be treated as Shah recommended. The IMF also demands a reduction.

    Fred Saturday, 03 February 2024 01:21 AM

    What about those at the top who are responsible for the problem, which is the misallocation of resources, because everyone has some talent and could be useful to the society they live in, otherwise the waste, the corruption, will continue in another form after digitalisation.Need patriots more than IMF.


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