Sri Lanka’s Austerity Drive Targets Former Presidents, Including Rajapaksa Brothers

Nalinda Jayatissa, Sri Lanka's minister of health and information and mass media, speaks at a press conference in Colombo

Sri Lanka’s leftist government has ordered former presidents, including the influential Rajapaksa brothers, to vacate their luxurious state-provided bungalows. The government announced its decision on Tuesday (Jan 21), marking a significant shift in how the country manages perks for its former leaders.

Information Minister Nalinda Jayatissa revealed that the stately homes, many of which were built during British colonial rule, will be repurposed into boutique hotels or museums. The initiative is part of an ambitious austerity drive under President Anura Kumara Dissanayake’s administration, which aims to address the country’s dire financial situation.

“These properties are prime real estate with significant historical value,” Jayatissa said at a press briefing in Colombo. “They will be utilized in a manner that benefits the public and generates revenue for the state, rather than serving as lavish residences for a select few.”

Under the new policy, former leaders will no longer be entitled to government housing. Instead, they will receive a modest rent allowance of 30,000 rupees (US$100) per month, equivalent to one-third of their pensions, as stipulated by a 1986 law.

The government’s crackdown has placed a spotlight on Mahinda Rajapaksa, the former president and ex-prime minister, who currently occupies a state-owned mansion with a monthly rental value of US$16,500. This is more than 150 times his official housing entitlement. Jayatissa confirmed that Rajapaksa had been informed publicly to vacate the premises immediately.

“Public notice serves as sufficient written communication in this case,” Jayatissa stated, adding that the government would no longer tolerate excessive privileges that burden taxpayers.

Local media reports indicated that Mahinda Rajapaksa had spent 800 million rupees refurbishing the house he now occupies, using state funds during his tenure as prime minister in 2021. While Rajapaksa has not commented officially, reports suggest he is willing to vacate upon receiving formal notification.

Gotabaya Rajapaksa, who resigned as president in July 2022 following widespread protests over economic mismanagement and corruption, is also residing in a government-owned mansion. Additionally, two other former presidents, Chandrika Kumaratunga and Maithripala Sirisena, are living in state properties located in Colombo’s prestigious diplomatic district.

President Dissanayake, who assumed office in September 2024 after a landslide victory in snap parliamentary elections, has positioned himself as a staunch reformer committed to fighting corruption and addressing the economic crisis that has plagued Sri Lanka. The country has faced severe financial difficulties, including dwindling foreign reserves, soaring inflation, and a crippling shortage of essential goods such as food, fuel, and medicines.

In December, the government reduced the number of security personnel allocated to former leaders, a move that reportedly saved over 1,200 million rupees annually. The Rajapaksa brothers alone accounted for over 1,017 million rupees in security costs in 2023, a figure that drew public outrage amid the country’s ongoing financial struggles.

The Rajapaksa family has played a dominant role in Sri Lankan politics for nearly two decades. Mahinda Rajapaksa served as president from 2005 to 2015, during which time he oversaw the end of the country’s long-running civil war. However, his tenure was also marred by allegations of authoritarianism, nepotism, and corruption. Gotabaya Rajapaksa, a former defense secretary during Mahinda’s presidency, assumed the presidency in November 2019 but resigned three years later amidst economic turmoil and mass protests.

The fallout from the Rajapaksas’ governance continues to resonate. Critics accuse the family of contributing significantly to the country’s financial collapse, citing unsustainable debt accumulation, mismanagement of public funds, and corruption. The austerity measures targeting their privileges are seen as an attempt to break from the past and signal a new era of accountability.

Turning the former leaders’ residences into revenue-generating properties is a cornerstone of the government’s strategy to ease financial pressures. The colonial-era buildings, known for their architectural grandeur, are expected to attract tourists and history enthusiasts.

“These homes are not just luxurious; they are part of Sri Lanka’s cultural heritage,” Jayatissa said. “Converting them into boutique hotels or museums will allow the public to appreciate their historical significance while contributing to the economy.”

The decision aligns with broader efforts to optimize the use of state-owned assets. The government is also considering similar measures for other underutilized properties and has hinted at introducing legislation to prevent future leaders from enjoying undue privileges.

The austerity drive has garnered mixed reactions from the public. Many citizens, who have borne the brunt of the economic crisis, have welcomed the move as a long-overdue correction. Social media platforms have been abuzz with praise for the government’s efforts to curb excessive spending on former leaders.

“This is a step in the right direction. It’s time our leaders understand that public resources are not their personal property,” one Colombo resident said.

However, critics argue that the measures may be politically motivated, aimed at diminishing the influence of the Rajapaksa family and other opposition figures. Some opposition leaders have accused the government of using austerity as a pretext to target political rivals.

“The government should ensure that these measures are applied fairly and transparently,” said a spokesperson for the opposition party. “Selective implementation could undermine public trust.”

While the austerity measures have been lauded as a bold move, experts caution that they are only a small step toward addressing Sri Lanka’s deeper economic woes. The country continues to grapple with high levels of debt, a weak currency, and structural inefficiencies in key sectors.

President Dissanayake faces the daunting task of implementing broader reforms, including overhauling tax policies, restructuring state-owned enterprises, and securing international financial assistance. The government’s ability to maintain public support will depend on its success in delivering tangible improvements in living standards and economic stability.

Related Posts