Sri Lanka's Bold Move: Legislators Abolish Pensions to Tackle Economic Crisis

Sri Lankan lawmakers voted to abolish their own pensions, fulfilling a campaign promise by President Anura Kumara Dissanayake. This decision, following public anger over economic crises, aims to address fiscal challenges and was part of broader reforms including ending perks for former presidents.

Sri Lankan legislators made a historic decision on Tuesday by voting to abolish their own pensions. This move fulfills a pre-election promise by the ruling government, led by President Anura Kumara Dissanayake, who took office in 2024. The decision comes amidst public discontent over the economic crisis that has gripped the country.

The bill passed with a significant majority, 154 out of 225 lawmakers supporting it, while only two voted against. The new law ends payments to those already receiving or qualifying for pensions, aligning with the government's broader reforms that earlier saw the cessation of perks provided to former presidents.

Sri Lanka has been grappling with severe economic challenges, including food, medicine, and fuel shortages, leading to widespread protests in 2022. The government aims to restructure its debt and improve fiscal health, a requirement under a USD 2.9 billion IMF bailout package initiated in 2023.

(With inputs from agencies.)