Call for urgent pension reforms in Sri Lanka
A call for reforms in Sri Lankan pensions was made this week during an event organised by the Pensions Department to celebrate Pensioners Day. “I think there has to be reforms in the Sri Lanka pensions system. While looking at the pension system I do not think it is sustainable,” said economist and Deputy Minister of Foreign Affairs, Dr. Harsha De Silva. The renowned economist who spoke at a symposium held at the event said that he had been a student of the Sri Lanka pensions for a long period of time.
The Pensioners Day was declared by the government of Sri Lanka in 2007 and “we salute the generations of pensioners who contributed to the development of the country,” said the Director General of Pensions, S.S. Hettiiarachchi in his welcome speech at the National Pensioners Day Symposium. He said the idea behind in organising the Pensioners Day was to initiate a dialogue and programmes beneficial for the pensioners and to develop an inclusive structure for pensions. He said problems relating to pensions will not be solved unless it is understood properly.
The progressive social policies of Sri Lanka in the 60s and 70s has made the population what it is today and rising life expectancy and females living longer than their male counterparts have created a retirement crisis and the problem is going to be worse and not better in the future. Insufficient participation in the labour force where there are more men than women has also contributed to this crisis. He said 70 per cent of the work force consists of men and only 30 per cent are women. “Therefore we have to create more job opportunities for women.”
He said pensioners should also have an income over poverty line to live comfortably in old age but what happens today is that pensioners use their retirement funds for their daughter’s wedding and nothing is left behind for them. Most people today use the bulk of their EPF money for an event such as a wedding. The retirement age for public servants should be increased to 65 years to offset this imbalance, he said. Speaker of the Parliament, Karu Jayasoriya who was the chief guest, said that it was the duty of the government to appreciate the service rendered to the country by the pensioners. “We have the largest public service and an armed force compared to other countries in the world.”
Deputy Minister of Public Administration and Management Susantha Punchi Nilame said the Pension Department has been upgraded to provide a service to pensioners owing to untiring efforts made by the present Director General of Pensions.
Secretary of the Ministry of Public Administration and Management J. Dadallage said that many Sri Lankans opted to join the government service because of the pension benefits. There have been instances where persons had discarded lucrative private sector jobs in favour of government jobs. He said the department is also grappling with the problem of fraud perpetrated by some persons drawing pensions by fraudulent means.