Sri Lanka’s Public Service Pension: How It Works, Where It Came From, and What Comes Next
What the scheme is Sri Lanka’s Public Service Pension Scheme (PSPS) covers permanent central-government employees who complete the qualifying service and retire under the stipulated rules. It is defined-benefit and pay-as-you-go: benefits are set by regulation and paid from current revenues rather than from an invested fund. Separate regulations govern teachers, police, and the armed […]
Rightsizing the Public Sector: World Bank’s Roadmap for Sri Lanka
Sri Lanka’s fiscal crisis has forced a difficult debate: how to balance essential public services with the need to cut spending and stabilise debt. In its Public Finance Review 2025, the World Bank urges the government to “trim” the public sector, not through sudden layoffs, but through a careful process of rightsizing and efficiency reforms. […]