Sri Lanka: Call for common pension framework
Source: Asia Insurance Review | Nov 2015
The Sri Lankan government must work towards creating a national pension policy framework to ensure financial security for the rapidly ageing population, urged experts at a national pension symposium. Even though there are 24 pension schemes in the country, there is no common framework to govern them and cover a larger portion of the population.
“Nearly 82% of the elderly don’t receive pension benefits,” University of Colombo Demography Professor Indralal de Silva said. He added that most pensioners are from the public sector.
Ms Nisha Arunatilake of the Institute of Policy Studies of Sri Lanka said that 87% of the population between the ages of 15 and 59 are not covered by a pension scheme, and only 30% of the population above the age of 60 get a meaningful pension.
The 24 pension schemes include the state’s Public Service Pension Scheme and the private sector’s Employee Provident Fund. There are also contributory pension schemes for farmers, fishermen and the self-employed.
Commenting on the feasibility of moving towards a common framework for pensions, Mr Sunil Hettiarachchi, the Director General of the Deparment of Pensions, said: “I think it is possible. There are international best practices. Why should different departments and ministries manage different schemes?”