President Anura Kumara Dissanayake has proposed a monthly interim allowance of Rs. 2,500 for public sector pensioners who retired between 2020 and 2024, effective from July 1, 2027, as part of measures to address disparities in pension payments.
Presenting the 2027 Budget in Parliament today (12), the President said the Government would continue its phased pension revision programme aimed at ensuring a fairer and more structured pension system for retired public servants.
The interim allowance will be paid until the planned pension revision under the new 2025 basic salary structure is implemented.
Final Phase of Earlier Pension Revision in 2027
Under the first Budget presented in 2025, the Government initiated a three-phase programme to revise the pensions of public servants who retired before 2020, bringing them in line with the 2020 basic salary scale.
The first and second phases have already been completed, while the final phase is scheduled for implementation in 2027.
The Government has also identified disparities between the pensions of public servants who retired before 2025 and those who retired in or after 2025, following the basic salary revision introduced in 2025.
New Pension Revision from 2028
President Dissanayake said the Government planned to introduce a further pension revision based on the 2025 basic salary structure, beginning with the 2028 Budget and implemented in several phases.
Once the revised pension payments commence for the relevant pensioners, the proposed monthly interim allowance of Rs. 2,500 for those who retired between 2020 and 2024 will be discontinued.
The proposed measures will also cover public sector pensioners whose salaries were determined under Department of Management Services Circulars 02/2025, 03/2025, 04/2025 and 05/2025.
The President said the overall objective was to gradually narrow pension disparities among public servants who retired at different times while maintaining sustainable public financial management.
