D.E.W. Gunasekera addresses issues of social protection

• Predicts that Sri Lanka will face formidable challenges in the future unless the issues of social protection are addressed now

These views were shared at the inauguration of a workshop titled ‘Promoting Productive Social Protection and Labour Systems in Sri Lanka for Inclusive Growth: Developing an Integrated Social Protection and Labour Strategy,’ organised jointly by the Institute of Policy Studies of Sri Lanka (IPS), Department of National Planning of the Ministry of Finance and Planning and the World Bank.

As the Chief Guest, Minister D.E.W. Gunasekera said that as a result of Sri Lanka’s rapidly aging population, adequate revisions and amendments need to be enforced to the existing national Social Protection Policy in order to avoid a crisis in the future.
He noted that the well-established schemes for old age pensions are today barely adequate for the purchase of the basic needs. Moreover, the lump sum payments at retirement are inadequate to generate a flow of adequate income after retirement.
He went on to state that 62 per cent of the employed are in the informal sector and this is a significant sector of our economy not covered by any social security schemes – occupational, safety or health or work-related measures of social protection.  
The Minister further stressed that changes to the Social Protection Policy needs to reflect the demographic shift that the country is undergoing at the moment, in order to prepare for the rising numbers of retirement age people.
The workshop, which commenced on 25 June, is a platform through which a policy and implementation dialogue could be started with relevant stakeholders and concerned parties on the subject of social protectionism in Sri Lanka.
A noteworthy attendee at the event was the Chilean Vice-Minister for Social Security Augusto Iglesias Palau and the Chilean Ambassador-Designate to Sri Lanka Christian Barros, both of whom shared the Chilean experience with the other participants at the workshop.
Saman Kelegama, Executive Director of the IPS, in his welcome address stated that Sri Lanka has shown a marked improvement in income poverty, as illustrated in the latest Households Income and Expenditure Survey (HIES) 2009/2010. The HIES highlights the fact that income poverty has dropped to 8.9% from 15.2% in 2006/7, which suggests that the number of overall people in living in poverty has fallen significantly.
However, Dr. Kelegama acknowledged that much more remains to be done in order to address the inequalities that persist between regions and between the urban, rural and estate sectors. He added that changes need to be implemented in order to promote inclusive growth. Also addressing the participants was Diarietou Gaye – Country Director for the World Bank in Sri Lanka, who reiterated Dr. Kelegama’s message, adding that that the World Bank stands poised to help the country address these lapses in the current Social Protection Policy if the need arises. Giving a comprehensive context to the call for amendments to the Social Protection Policy was Director General of the Department of National Planning, Dr. B.M.S. Batagoda, who stated that currently, the Government was spending over Rs. 200 billion every year on social protectionist activities such as Samurdhi benefits and utilities concessions. This amounts to 20% of revenue.
He added that in addition to that, it spends a similar amount on the provision of free healthcare and education across the island. Dr. Batagoda pointed out that despite this colossal amount being spent, the results are often paltry in comparison. Using the national education system as an example he stated that the Government funds around 10,000 schools around the country, however access to and the quality of these institutions has left a lot to be desired with over 12% of students failing all subjects at the GCE Ordinary Level examination.
He stressed on the fact that as a middle income country, Sri Lanka needs to reprioritise and design targeted methods that would provide tangible results through a social protection strategy which would promote growth and development.