Lankan environment positive to launch pension schemes
View(s):Low inflation, a stable economy and interest rates provides a long-term platform for the implementation of many vibrant pension schemes in Sri Lanka, according to Central Bank Governor Ajith Nivard Cabraal.
Speaking at a ‘Pension Forum’ in Colombo on Tuesday organised by Citi Investor Services – part of Citi Bank-, he said Sri Lankans were now rapidly moving into higher levels of incomes and affluence.
Michael Zink
“In this scenario, new pension schemes will become a major need, which in turn, will provide wider opportunities for those who offer pension products,” he said hoping that the banking and insurance sectors will seize the opportunity to fulfill this growing niche market.
The event discussed the critical issues facing Sri Lanka’s pension landscape and the challenges and opportunities that arise from it, according to a media release issued by the organisers.
Michael Zink, Citi’s ASEAN Head and Citi Country Officer of Singapore, said, “While Sri Lanka’s pension landscape is in a nascent stage of reform, there is increasing attention in its continued development”.
Vanessa Wang, Asia Pacific Head of Pension Services for Citi Investor Services, noted that, “It is an opportune time for Sri Lanka to take action to enhance the sustainability, diversity and participation in how it delivers pensions to its citizens. We’ve seen many Asian governments tackle pension issues over the last decade, all with some degree of success, and timing is crucial. The earlier you take action, the more time you have to react to the non-reversible demographic trend”.
Ravin Basnayake, Citi Country Officer for Sri Lanka, said, “Many countries around the world face the challenge of an aging society, which will have an impact on economic growth, living standards and the way societies function. The issue of sustainability for pension systems is one of the greatest challenges, and opportunities, facing governments and corporates around the world”.