Public sector pensioners who retired between 2020 and 2024 are set to receive a monthly interim allowance of Rs. 2,500 from July 1, 2027, under a proposal announced by President Anura Kumara Dissanayake in the 2027 Budget.
Presenting the Budget in Parliament yesterday (12), the President said the measure was aimed at addressing disparities in pension payments as part of the Government's ongoing efforts to establish a fairer and more structured pension system.
The interim allowance will remain in place until the planned pension revision based on 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 introduced a three-phase programme to revise the pensions of public servants who retired before 2020, aligning them with the 2020 basic salary scale.
The first two phases have been completed, while the final phase is scheduled to take effect in 2027.
The Government has also identified differences in pension payments between public servants who retired before 2025 and those who retired in or after that year, following the basic salary revisions introduced in 2025.
New pension revision planned from 2028
President Dissanayake said a further pension revision based on the 2025 basic salary structure is planned to begin with the 2028 Budget and will be implemented in several phases.
Once the revised pension payments begin 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 apply to 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 reduce pension disparities among public servants who retired at different times while maintaining sustainable public financial management.
