Ageing population makes Sri Lankaâ€™s welfare programs unaffordable: World Bank
ECONOMYNEXT – An ageing population could soon make Sri Lanka’s generous social programs unaffordable, a new World Bank report said.
Sri Lanka is the only ageing society in South Asia, the World Bank said in its South Asia ‘Economic Focus’ report.
“With older populations come higher health care costs and larger spending on public pensions,” it said.
“Population ageing could make the country’s generous social programs unaffordable in a not-so-distant future.”
The World Bank also said much job creation has been in the public sector, which puts additional pressure on government spending.
“Sri Lanka thus needs to keep social programs affordable. It also needs to increase tax revenues, which until recently were steadily declining relative to GDP.”
(COLOMBO, 16 Octber, 2018)