ECONOMICS OF POPULATION AGING IN SRI LANKA.

Abstract

The process of population ageing, in Sri Lanka, manifested by a shift in the age structure of the population towards the older population, has become a prominent topic for studies on the implications of demographic change. Nevertheless there is a vacuum of research on economic implications of aging in Sri Lanka. This article investigates the economic issues related to the aging process in Sri Lanka, along with the planning and policy implication of the aging phenomena. The need for older persons to participate in the development process and the importance of facilitating their economic and social empowerment is highlighted. Other relevant economic issues investigated are the observed increases in old dependency, growth, savings, investment and consumption, labour markets, pensions, taxation, transfer of wealth, property and care from one generation to another. It also focuses on the cost implications of health and health care delivery system prevailing in Sri Lanka and the adequacy of such services for the elderly. Economic consequences of ageing on, living arrangements of elderly, their housing and migration is investigated in the context of the nucleation of the family unit and the inter and intra generational attitudinal changes.