Lawmakers in Sri Lanka on Tuesday voted by a large majority to abolish their pension scheme, delivering on a major campaign pledge by the ruling Marxist-leaning administration amid continued public anger over the country’s economic collapse.
The bill was approved by 154 votes in the 225-member parliament, with only two legislators opposing it. Other members were absent during the vote.
Under previous regulations, members of parliament became eligible for a lifetime pension after completing a single five-year term.
The newly passed law halts pension payments to anyone currently receiving or qualifying for the benefit.
President Anura Kumara Dissanayake, elected in 2024, had promised during his campaign to end the entitlement.
In September, Dissanayake’s administration also moved to withdraw benefits granted to former presidents following public pressure.
The measures eliminated state-funded housing, allowances, pensions and transportation.
Official offices and staff assigned to former presidents and their widows were also discontinued.
The country currently has five living former presidents and one widow.
Dissanayake secured victory in last year’s election on a wave of frustration directed at political leaders blamed for the nation’s severe economic downturn in 2022.
The crisis caused acute shortages of food, medicine, fuel and electricity, sparking mass protests that ultimately led to the resignation of then-President Gotabaya Rajapaksa.
Justice Minister Harshana Nanayakkara introduced the pension repeal bill in parliament, stating that the government was fulfilling an election commitment.
He argued that lawmakers could not justify receiving pensions while the country was still recovering from its most severe economic breakdown.
Sri Lanka declared bankruptcy in April 2022, with total debt exceeding $83 billion, more than half owed to foreign creditors.
The government sought assistance from the International Monetary Fund, which approved a $2.9 billion bailout programme in 2023 spanning four years and requiring debt restructuring.
Authorities have since announced the completion of the restructuring process after reaching agreements with bilateral and multilateral lenders as well as private bondholders.
The country is aiming to secure approximately $17 billion in debt service relief.
The economic collapse has been attributed to policy missteps, compounded by the impact of the COVID-19 pandemic and the 2019 terrorist attacks that severely damaged the vital tourism sector.
The pandemic also disrupted remittances from Sri Lankans working overseas, further straining the economy.
