Cabinet cuts MPs’ insurance cover to Rs. 250,000

Wednesday, 6 August 2025 00:04 - - {{hitsCtrl.values.hits}}

The Cabinet of Ministers at their meeting on Monday approved reducing the group insurance cover for Members of Parliament from Rs. 1 million to Rs. 250,000 per Parliamentary year, effective from the next insurance year starting 9 October 2025.

The decision follows a recommendation by President Anura Kumara Disanayake in the 2025 Budget speech, in which he proposed cutting the existing limit by 75% as part of broader cost-rationalisation measures.

“A group insurance policy for MPs was first approved on 15 May 2023, with a maximum coverage of Rs. 1 million annually. The policy has been in effect since then, providing coverage for MPs during their term in office,” Cabinet Spokesman and Minister Dr. Nalinda Jayatissa said at the weekly post-Cabinet meeting media briefing yesterday.

The move is aimed at aligning Parliamentary benefits with the country’s current fiscal constraints, as it continues efforts to streamline public expenditure.

The proposal to reduce the coverage which was presented by the Public Security and Parliamentary Affairs Minister Ananda Wijeyapala, received Cabinet approval this week.