Sri Lanka Orders Ex-Leaders To Move Out of Deluxe Mansions Amid Austerity Push

Sri Lanka’s leftist government has instructed former presidents, including the powerful Rajapaksa brothers, to vacate luxurious government-provided residences as part of a broader austerity initiative. The move is seen as an effort to reduce state spending and address public dissatisfaction with the lavish lifestyles of former leaders, especially amid the country’s ongoing economic crisis.

Information Minister Nalinda Jayatissa confirmed the government’s decision to convert the luxury bungalows, which were traditionally occupied by former heads of state, into upmarket boutique hotels or museums. The aim is to reclaim the properties and generate revenue, rather than maintaining these costly homes for former leaders.

The government plans to replace the housing provided to ex-presidents with a modest rental allowance. According to Jayatissa, the state will pay former leaders a rental allowance of approximately $107 per month, in line with the entitlements outlined in a 1986 law. This contrasts sharply with the lavish government-funded residences that some of the former leaders have been living in.

Mahinda Rajapaksa, the former president and current occupant of one of the stately homes, has been living in a residence valued at $16,500 per month (approximately 4.6 million rupees). This is more than 150 times the amount he is entitled to under the law. Jayatissa said that the government will no longer provide housing for ex-presidents or their widows in the future. Instead, they will receive rent allowances that amount to one-third of their pension, approximately 30,000 rupees.

Rajapaksa has not publicly commented on the government’s move, but reports suggest that he is willing to vacate the premises if given formal notice. The government has now issued a public statement which serves as notice for Rajapaksa to vacate the property immediately.

The issue of former leaders’ lavish residences has long been a point of contention in Sri Lanka. During Mahinda Rajapaksa’s tenure as prime minister in 2021, government money was reportedly spent refurbishing his mansion to the tune of 800 million rupees. His younger brother, Gotabaya Rajapaksa, who was forced to resign in July 2022 amid accusations of economic mismanagement during Sri Lanka’s devastating financial crisis, also occupies a state residence.

In addition to housing, the government has already taken steps to reduce the number of security personnel assigned to former leaders. This decision, made in December 2024, is expected to save the state more than 1.2 billion rupees ($4.3 million) annually. The security costs for the two Rajapaksa brothers alone totaled over 1 billion rupees ($3.63 million) last year.

These actions are part of President Anura Kumara Dissanayake’s broader efforts to address corruption and reduce the financial burden on taxpayers. Dissanayake, who assumed office in September 2024 after a sweeping victory in snap parliamentary elections, has made fighting corruption a central pillar of his administration. One of his key promises was to clamp down on lavish expenditures by former leaders, and his government’s actions appear to be delivering on that pledge.

Under the new policies, the number of bodyguards assigned to former presidents and high-ranking officials has been capped at 60, down from the higher numbers in previous years. This move is in line with the government’s broader efforts to scale back state resources dedicated to former officials, particularly given the country’s financial distress.

The Rajapaksa family, who ruled Sri Lanka for much of the last decade, has faced increasing scrutiny, especially after Gotabaya Rajapaksa’s resignation following the country’s severe economic meltdown. This crisis, which saw foreign reserves dwindle and led to shortages of essential goods such as food, fuel, and medicine, has cast a long shadow over the Rajapaksa legacy. Their rule, marked by allegations of corruption and mismanagement, left the country grappling with an unprecedented financial crisis.

The government’s decision to evict former leaders from these luxury homes is likely to further fuel tensions surrounding the Rajapaksa family’s legacy and the austerity measures the new administration is implementing.