President Maithripala Sirisena has halted all recent appointments and promotions in the education sector to conduct a review.
This includes teaching, principal and education administrative services, government sources said.
The decision was made after a discussion he had with teachers' trade unions yesterday at the Presidential Secretariat.
Unions alleged that appointments and promotions have been given in an unfair manner in the guise of addressing political victimization.
They initially planned a strike, but later abandoned the idea after discussions with the President.