(Sri Lanka Brief)
The issue of parliamentary pensions has once again entered Sri Lanka’s public discourse, raising fundamental questions about fairness, accountability, and fiscal responsibility. At a time when citizens face economic hardship, taxation pressures, and reforms to their own retirement benefits, the privileges enjoyed by elected representatives are being scrutinised more closely than ever.
Globally, many democracies have confronted similar debates. In response, they have reformed parliamentary pension schemes to better reflect principles of equity, sustainability, and transparency. Sri Lanka’s ongoing discussion offers an opportunity to draw from these international best practices and recalibrate policy in a way that strengthens public trust.
A Legacy of Privilege Under Scrutiny
Historically, parliamentary pension schemes in many countries—including Sri Lanka—have provided benefits that are significantly more generous than those available to ordinary public servants or private-sector workers. Lifetime pensions after relatively short periods of service, early eligibility ages, and limited contribution requirements have fuelled perceptions of political privilege.
In Sri Lanka, these concerns are amplified by the country’s recent economic crisis, IMF-backed fiscal reforms, and public sector restructuring. Citizens are increasingly asking whether it is justifiable for legislators to retain special retirement benefits while austerity measures affect the wider population.
A Recent Legislative Development
Amid this ongoing public debate, a significant legislative development took place on January 7, 2026, when the bill to abolish pensions for Members of Parliament was presented for its first reading in Parliament. Speaking after the presentation, Minister of Justice and National Integration, Attorney-at-Law Harshana Nanayakkara, stated that once the bill is enacted into law, parliamentary pensions will be fully abolished, and no individual will be entitled to receive such benefits thereafter. He clarified that pensions already received prior to the law coming into effect will not be affected.
The Minister noted that the move directly responds to strong public opposition to MPs receiving pensions after a short period of service without making contributions, in contrast to ordinary public servants who must meet strict service and contribution requirements. He further explained that the reform was included in the government’s policy statement and reflects the National People’s Power government’s commitment to dismantling a privilege-based political culture.
The Sri Lankan government has not adopted the best practices followed in other parts of the world and appears to assume that serving as a people’s representative should be purely voluntary.
At the same time, the parliamentary opposition too has expressed their willingness to support the Bill without any constructive counter proposal.
Global Principles for Reform
International experience shows that successful pension reform rests on several core principles:
Equity and Fairness
Best practice requires aligning parliamentary pensions with national pension systems. In many countries, MPs contribute at rates similar to other public servants and receive benefits calculated under the same rules. This reduces perceptions of elitism and reinforces the principle that elected representatives are subject to the same standards as citizens.
Sustainability
Unfunded or overly generous pension schemes place a long-term burden on public finances. Globally, countries are moving toward funded, contribution-based systems supported by regular actuarial reviews to ensure long-term fiscal health.
Transparency and Oversight
Public disclosure of pension rules, costs, and benefits is central to accountability. In well-governed systems, independent bodies—not politicians—administer parliamentary pension funds, preventing conflicts of interest and political interference.
Adequacy Without Excess
While MPs often face career disruption and electoral uncertainty, global norms reject lifetime pensions for minimal service. Benefits are increasingly linked to career-average earnings rather than final salaries, preventing inflated payouts.
Portability and Retirement Age Alignment
Modern systems allow MPs to transfer pension rights when returning to other careers and set eligibility ages in line with national retirement ages, eliminating early-access privileges.
Lessons from Other Democracies
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United Kingdom: MPs’ pensions are based on career-average earnings, with eligibility aligned to the state pension age and independent administration by the Independent Parliamentary Standards Authority (IPSA).
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France and Italy: Special parliamentary pension schemes have been abolished, with MPs now participating in contribution-based systems similar to those of ordinary citizens.
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Australia: The old defined-benefit parliamentary pension scheme was closed, and new MPs are enrolled in the national superannuation system.
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Canada: MPs make mandatory contributions, benefits are capped and indexed, and pension costs are transparently reported.
Options for Sri Lanka
As Sri Lanka debates the bill to abolish parliamentary pensions, the government should consider several policy actions that merit serious consideration:
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Phase out special pension schemes and fully align MPs’ retirement benefits with national pension frameworks
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Establish independent statutory governance for the management of parliamentary pension arrangements
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Mandate annual public disclosure of pension costs and actuarial assessments
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Introduce fair vesting rules, including minimum service periods and the elimination of lifetime pensions for short tenures
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Commit to periodic reviews reflecting demographic, economic, and fiscal realities
Ultimately, parliamentary pension reform is not merely a technical policy issue; it is a test of political credibility. In Sri Lanka’s current climate, visible commitment to fairness and shared sacrifice can play a crucial role in rebuilding trust between citizens and their representatives. Merely abolishing pensions altogether will open avenues for corruption and
By aligning policy with global best practice—and by following through on legislative commitments—Sri Lanka has an opportunity to demonstrate that those who govern are willing to be governed by the same rules they impose on others.
(Prepared with inputs from AI)