Agony of the elders in Sri Lanka
Of Sri Lanka’s 21.5 million people, almost 3,325,000 individuals are over 60 years – elders in society. Unfortunately this valued sector is subject to numerous forms of injustice in the hands of bureaucratic administrators of the country.
Common harassments, the elders are subjected to, have been continuously highlighted in relation to the routine activities at the Pensions Department, service sectors such as public transport, state hospitals, local authorities, etc. These can be specified as continued and unattended lapses in our democratic structure.
During the past 10 years, a new addition to this list in a different and deadly form is how senior citizens have been duped of their savings following the collapse of several financial institutions.
Way back in the 2008/09, the financial sector in Sri Lanka started experiencing a wave of finance companies going bankrupt. All these companies, through prominent public advertising, drew a large number of depositors towards attractive savings. The bigger ones who provided the savers with massive interest rates were not registered with the Central Bank (CB) though they were permitted to carry on the finance business.
Several finance companies registered with the CB (providing interest rates in terms of the CB prescribed formula) also headed for a collapse.
A clear majority of the depositors were retirees whose hard earned retirement benefits have been duped by these so-called “Financial Wizards.”
One such finance company registered with the CB in which I deposited my total retirement benefits was the Ceylinco Investment and Reality Ltd., which on the advice of the CB changed its name to The Standard Credit Finance Ltd (SCFL).
It was later found, through authentic documentary proof including independent audit reports, that the directors of these finance companies (the CB registered ones) had misappropriated the funds and the assets of these companies. With regard to SCFL, the CB appointed managing agents and launched an extraordinary restructuring programme. Further, while servicing of the contractual deposits was unilaterally terminated, refund of the said deposits too was blocked by another group of depositors.
Accordingly over the past 10 years, depositors of SCFL have been subjected to untold agony. Among them are helpless elders. Their dignity and old age freedom of sustained peace have been totally and brutally violated. Their justifiable dreams of building up respectful, productive families have been shattered.
The CB recently announced that the depositors of SCFL will be provided a maximum of Rs. 600,000 per depositor as compensation on their lost deposits.
What we like to ask is whether this proposal could humanely justify the loss of their life long savings made 10 years ago? This is very appropriate in view of the International Day of Older Persons being celebrated on October 1.
Universal human rights are often expressed and guaranteed by law, in the forms of treaties, customary international law, general principles and other sources of international law. The obligation to protect requires the State to protect individuals and groups against human rights abuses. The obligation to fulfil means that States must take positive action to facilitate the enjoyment of basic human rights.
It is also relevant to note that the deprivation of one’s rights adversely affects the others too. This has undoubtedly emerged as a direct result of the downfall of the finance companies during the 2008/09 era.
It is also prudent for the State to investigate, even at this late hour, as to how and who permitted the directors and others at SCFL to mismanage over Rs.3.4 billion in assets – all procured through the deposits of the abused innocent elders.
The elders (over 65 years of age) of SCFL humbly appeal to the State to utilise the massive financial reserve of over Rs. 44 billion available with the CB’s Sri Lanka Insurance and Liquidity Support Scheme Fund to fully compensate the distressed elders, who have anxiously waited for the past 10 years.
This request is reasonable since the money lying in the above stated insurance fund has been contributed through the depositors funds of the member institutions and thus the taxpayers of the country need not be burdened with such compensation.
“We earned, when old, not to beg.
Saving with determination and untold suffering.
Bureaucratic power has put it on hold.
Rescue us, dear Mother Lanka, from this barbaric act”.
(The writer can be contacted at amalfdo@gmail.com)