By: Staff Writer
August 18, Colombo (LNW): Sri Lanka is experiencing a significant transformation in its age structure associated with the youth bulge as well as population ageing. These population trends create many challenges as well as opportunities. UNFPA policy dialogue held in Colombo recently revealed.
The UNFPA Sri Lanka, in partnership with the Ministry of Finance, Economic Stabilization, and National Policies, recently organized a policy dialogue titled “Shaping the Future: A Policy Dialogue on Population Dynamics in Sri Lanka” at the BMICH in Colombo.
The event brought together key stakeholders, including policymakers and experts, to discuss the country’s demographic challenges, such as aging, low fertility, and migration.
With Sri Lanka facing significant demographic shifts, including a declining fertility rate and a rapidly aging population, the dialogue emphasized the need for comprehensive national policies to address these issues.
Experts highlighted that by 2041, one in four Sri Lankans will be over 60, and the ongoing migration trends add complexity to the population landscape.
The dialogue also marked the launch of UNFPA’s 2024 State of the World Population Report and an Issue Brief on Sri Lanka’s population dynamics.
Life cycle deficit is the difference between the consumption of goods against the generated labour income.This deficit is serviced by transfers, which are economic mechanisms and social institutions that facilitate the reallocation of resources across age
Reserch results show that between ages 30 – 69, people earn more than they consume, showing that Sri Lanka’s labour force, exceeds beyond the current retirement age of 60.
Sri Lanka is experiencing a significant transformation in its age structure associated with the youth bulge as well as population ageing. These Population trends create many challenges as well as opportunities.
As the population ages, the number of working adults who contribute to the economy will reduce in the future. This means the reliance on government and the social welfare system will increase
National Transfer Accounts (NTA) show that older people have accumulated real assets that can be used later in life, through assets or savings.
To ensure that the ageing population will have sufficient private assets/savings, SriLanka must raise labour productivity and invest in education and healthcare to capture the benefits of the second demographic dividend.. UNFPA suggested. Older people having more assets might depress interest rates or boost productivity As the share of children in the population declines, it becomes easier for society to invest more in each child.
