2 July, 2022


Sri Lanka’s Rapidly Ageing Population & Socio-Economic Challenges

By Zahran Sikkanther Lebbe

Zahran Lebbe

Zahran Lebbe

Sri Lanka’s rapidly ageing population poses serious challenges on several fronts. Selected socio-economic challenges of this demographic transition are highlighted in this article, calling attention of the policy makers to implement fruitful interventions to preserve the rights of the elderly and to ensure their financial stability, social security and easy access to healthcare.

Statistics shows that the population above the age of 60 years was 2.5 million in 2012 which is 12.5% of the total population whereas projection shows that Sri Lanka would have elderly population of about 3.6 million by 2021, which is 16.7% of the total population and by 2041, one-quarter of the population would be elderly.

Strain on Public Financing

As a greater proportion of population reaches retirement age, more people will be drawing from public funded pension schemes which could absorb greater fraction of future national expenditure.

Additionally, the government has to allocate more funds to fulfill their health care and welfare needs, whilst the national expenditure priorities would be negatively impacted with the availability of the limited fund for the public investment activities and for economic prosperity.

Shrinking National labor force

Ageing population will not only create a shortage of young talent in the national labor force, but also create large-scale exodus of experienced human capital from the national labor force reaching their traditional retirement age.

National labor force will be further burdened with the outward migration of young local talents and once if the existing Sri Lanka’s low level of female labor force participation is continued.

Furthermore, statistics shows that the labor force participation of the Sri Lankan elderly population also remains low.

Encouragingly, elderly people live healthy and active even at the oldest ages and as a result many of them may prefer to remain in the workforce even after their retirement age. Hence, appropriate policy changes could be implemented to retain them in the workforce, further contributing to the economic progress of the country.

Pressure on National Health Care System

The ageing population is expected to have significant pressure on the National Health System and the Health Care Budget.

Old-age illnesses such as Alzheimer’s disease, cardiovascular diseases, chronic cancer, arthritic conditions and osteoporosis and the physical disabilities are expected to rise in future. Hence, the national health policies should priorities the emerging health care needs of the elderly.

Specialized hospitals to provide geriatric care at the main cities of the country and separate wards dedicated for elderly at selected hospitals could be established whilst increasing the number of qualified and trained geriatric health care professionals is also essential to provide easily accessible specialized health care.

Government could introduce suitable mechanism to make health care services obtained from private sector hospitals affordable to elderly society, which is paid mostly through personal savings or retirement income.

Retirement Schemes

Existing retirements schemes available are not only limited in coverage but also inadequate as the real value of the schemes get eroded due to inflation over the period of time. Substantial population in the informal sector is yet to be covered under the pension schemes.

Hence, reforming pension schemes is very essential to support the elderly population to live their retirement life free of financial burdens.

Higher contributions to retirement schemes during the period of employment, increasing the retirement age, prudent investment to yield higher returns of the pension’s funds and periodic adjustment to the retirement benefit in line with the real expenditures are few options which could be considered for the pension reforms.

Caring of Elderly Sri Lankan society is enriched with the culture of caring the elderly by the family members. This is further strengthened by a legislation mandating that adult children are responsible for the welfare of their elderly parents.

However with the changing traditional living pattern such as migration, a shift to a nuclear family structure and increasing dual earning households necessitates the raise of the institutional capacities of caring the elderly with the affordable rates.

“The Elderly” – to be redefined

The age of 65 years is the cut-off age for defining elderly in most of the developed countries whereas UN defines elder as a person who is above 60 years of age considering the global perspective. In line with this UN definition, the age of 60 years is considered in defining the elderly in Sri Lanka.

However, Sri Lanka is demographically on par with developed countries with the increased life expectancy. Hence, the authorities could reexamine cut- off age of elderly and shifting it to 65 years, which would be beneficial to the country.

Overall, unlike in developed countries, Sri Lanka as a developing country will have many old people with inadequate level of income and pension coverage, which may ultimately lead them to poverty. The traditional family support to the elderly may also be weakened with the changing living pattern of the contemporary families. These challenges should be addressed with appropriate timely strategies and actions which require substantial amount of financial and physical resources.

It should be ensured that the senior citizens enjoy rich and dignified lives as they have contributed to the development of this nation over the years.

“To care for those who once cared for us is one of the highest honors in the world”

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Latest comments

  • 5

    Germany solves the problem by extending the retirement age.

    I believe people there can remain in the workforce until their 80s. That is a good system.

    Its only when people stop working they deteriorate faster. The system should not have an artificial upper age limit. Until one is mentally and physically sound and willing they should be able to serve in some capacity.

  • 0

    Yes aging population is in the rise for no fault of theirs. Some of the so called aged and retired people are mentally and physically alert and active. They could be of Use to the county/community in some way or other. Hence it is suggested that a ‘pool’ of retired people with different skills and!
    profession be maintained . They should be on ‘call’ to advice guide and perform jobs to assist the requirements of the country in different fields. If MP’s and ministers can perform? after sixty five why not capable elders.

    Further seniors,homes should be maintained by the government where administration could be done by the seniors themselves. The cost for such homes could be obtained by adding ONE RUPEE ton a litter of petrol on retail sales. The mechanism could be worked out.I am sure none of the vehicle owneres would grumple.

  • 0

    My persona view is that Sri Lanka is fast moving towards the Western culture where elders are becoming a burden to their children. In the context, the state must stratagize this issue and ensure that the weight of the societal responsibilities on the state is minimized as much as possible.
    State must adopt good practices adopted by Western countries. Ensure that elders are engaged as far as possible and thereafter take their burden on the state!.
    Extending the retirement age to 65 has been successfully adopted by most countries; and for palliative care state intervention and nursing homes an elder homes are unavoidable. This would be a very effective income generators as most of the todays’ elders are equipped with financial stability!.
    A pension scheme to all elders over and above the retirement age is a must! Countries like Thailand increases the pension with age and this is a good intention specially when parents have to be cared for within their own homes.
    Having a pool of retired abled professionals has been cumming up for ages now. State has not done anything here. Elder Secretariat has in their website indicated that they are registering all elder homes in order to ensure standardization. However, there is no responsible officers in those officers to obtain any information. In fact, a circular letter is sent out to elder homes to send in particulars of their inmates to the respective secretariat on a ‘pen drive’.
    Do elder homes have all these facilities? Why cannot this information be obtained via an email?
    State must appoint reasonable officers to work in responsible jobs in the first instance. There is no interest by the responsible officials regards to elders.. they consider them a write off.

    Christine Ekanayake

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