Sri Lankan MPs Vote to Scrap Pensions in Post-Crisis Reform Move
Sri Lankan legislators have overwhelmingly voted to abolish their pensions, as the Marxist-leaning government fulfills a key campaign promise made in the wake of the country's severe economic turmoil. The landmark decision marks a significant step in post-crisis reforms aimed at addressing public resentment against political elites.
Overwhelming Parliamentary Support
Lawmakers passed the bill on Tuesday by 154 votes in the 225-member House, with only two legislators voting against the measure. The remaining members were not present during the crucial vote. This decisive action follows President Anura Kumara Dissanayake's 2024 election pledge to end the practice, which he made while campaigning on a platform of government accountability and austerity.
Previously, Sri Lankan lawmakers were entitled to a pension after serving a single five-year term. The new legislation completely halts payments to anyone who currently receives or qualifies for these parliamentary pensions. This represents a dramatic reversal of longstanding political privileges.
Broader Reform Agenda
This pension abolition follows a similar move in September when Dissanayake's government eliminated perks provided to former presidents in response to popular demand. Those scrapped benefits included state funding for housing, various allowances, pensions, transportation, and even offices with staff for former presidents and their widows. There are currently five living past presidents and one widow affected by these changes.
Justice Minister Harshana Nanayakkara presented the bill in parliament, declaring that an important election promise had been fulfilled. He emphasized that lawmakers had "no moral right" to receive pensions while the country continues to struggle emerging from its worst economic crisis in decades.
Economic Crisis Context
Dissanayake won office largely by capitalizing on public anger against politicians widely blamed for Sri Lanka's catastrophic economic collapse in 2022. That crisis resulted in severe shortages of essential items including food, medicine, fuel, and electricity, triggering massive protests that ultimately forced then-President Gotabaya Rajapaksa to resign.
Sri Lanka declared bankruptcy in April 2022 with more than $83 billion in debt, over half owed to foreign creditors. The nation sought assistance from the International Monetary Fund, which approved a $2.9 billion four-year bailout package in 2023. This agreement required Sri Lanka to undertake comprehensive debt restructuring.
The island nation has since concluded its debt restructuring process after reaching agreements with bilateral and multilateral creditors along with private bondholders. Sri Lanka is now seeking to obtain approximately $17 billion in debt service relief as part of its recovery efforts.
Roots of the Crisis
Sri Lanka's economic collapse resulted from multiple factors including significant economic mismanagement, the devastating impact of the COVID-19 pandemic, and the 2019 terrorism attacks that crippled its vital tourism industry. The pandemic also severely disrupted the flow of remittances from Sri Lankans working abroad, further exacerbating the nation's financial troubles.
This pension reform represents more than symbolic politics—it's a concrete measure demonstrating the government's commitment to austerity and accountability as Sri Lanka continues its challenging path toward economic recovery and stability.
