Senior citizens and saving mobilisation

Sri Lanka’s is an ageing population. A large number of senior citizens retire from the mercantile and semi-government sector as ETF and EPF beneficiaries with no monthly pension. Most of these ex-workers continue to be the sole breadwinners of their families.

Some employees are expected to terminate their services under the voluntary retirement schemes (VRS), being paid some compensation, the EPF and ETF benefits.

Funds they receive under these two schemes are deposited in banks at fairly low rates of interest — their only source of income thereafter. Unfortunately interest rates that prevailed two years ago have been trimmed by at least 50 per cent to date.

The suffering undergone by the retired monthly paid workers and others depending on interest income cannot be ignored.

Corporate bodies such as banks, Unit Trusts, building societies, we are told develop innovative savings products, pension schemes and alternative investment opportunities that will earn better dividends for such type of people.

Sunil Chandrasiri,
Pannipitiya.