Business

The unlocked potential of ageing and Silver Economy in Sri Lanka

Published

7 days ago

2026/03/21

Dr Bilesha Weeraratne_IPS

With over 18% already aged 60 and above—and one in four projected to be 60 or older by 2041—the Sri Lankan population is rapidly ageing. IF harnessed effectively, the elderly population and the related Silver Economy have great potential to contribute to Sri Lanka’s economy. This blog analysis shows the challenges and the possibilities for Sri Lanka to reap demographic dividends by unlocking the potential of the ageing population and the related Silver Economy.

Demographic Dividend and Silver Economy

Although population ageing poses challenges such as slower growth and increased fiscal pressures, healthier ageing trends offer a silver lining by boosting labour force participation, extending working lives, and enhancing productivity. Population ageing becomes a demographic dividend when the older population is considered an economic asset, rather than a social burden, and the potential of the change in the age structure is harnessed to accelerate economic growth. This involves creating employment and other economic opportunities, products, and services required by the elderly.

The Silver Economy refers to the economic opportunities associated with the growing public and consumer expenditure related to population ageing and the specific needs of the 50+ population. It is the system of production, distribution, and consumption of goods and services, targeting older adults, who are recognised as active economic agents with spending power, life experience, and growing demographic significance.

Changing Population Dynamics

To trigger a demographic dividend, this older population requires accumulated savings and investments to finance consumption during their retirement. However, the status quo of the elderly in Sri Lanka is mostly gloomy. In recent years, 49% of 55-64 year old cohorts were economically inactive, while the labour force participation rate for males and females were 36% and 11%, respectively. This suggests limited interest, capacity, and/or employment options. For instance, the retirement age of 60 years restricts formal employment opportunities for the elderly. Hence, a majority of older workers are employed in the informal sector, which underutilises their skills and underemploys them. Similarly, the elderly have limited options for part-time and flexible work, and are dissatisfied with participating in work. With the current average life expectancy of 75.5 years, they face about 15 years of post-retirement life with limited income and employment opportunities.

Additionally, only 31% of those above retirement age received a pension in recent years. Over three-quarters of retired persons were net dependants, and 91.7% did not receive any income from savings. Among those with savings such as the Employees’ Provident Fund (EPF), most spent their EPF without saving or investing for later life. Estimates suggest that by 2030, the economic old-age dependency ratio in Sri Lanka will reach 29.2%. Moreover, the 65+ years population had the highest multidimensional poverty headcount ratio (17.9%) in 2019. The age group of 36-64 years, including those who will be 60+ years in 2037, had a multidimensional poverty headcount ratio of 16%. With the worsening of overall poverty in the post-crisis setting, Sri Lanka’s older population is likely to be more vulnerable now.

Looming Care Crisis

Moreover, there is a growing care deficit – a gap in demand and availability of caregivers, for the ageing population. Around 76% of 65+ years population live with children, which is projected to decline over time with the emerging cultural and social shift from home-based care towards institutional care. Three-generation households are projected to decline from 19% in 2012 to 5% by 2060. The decreased availability of family care due to smaller family sizes and growing female employment will increase demand for commercial care. Yet, as discussed, most elderly people will not have the financial capacity to seek commercial care. At the same time, the elder care sector in Sri Lanka is polarised. On the one hand, there is an excess demand for the limited number of state-run elder care institutions—often of relatively low quality, while fee-based facilities remain unaffordable for the average elderly. Hence, the less-affluent middle-class elderly have virtually no options for institutional care. On the other hand, formal and professional home-based care is costly, while lower-cost options are informal and ad hoc. Moreover, free adult day care centres are limited and often target low-income elders, with almost no paid day-care options for other income groups. Across all care options, there is an acute deficit in both formal and informal care workers. Projections indicate a 149,076 deficit of long-term care workers by 2037.

Silver Economic Strategic Plan

Therefore, without timely strategic action, the ageing population would become a burden to the Sri Lankan society and increase government expenditure on health and other care, pensions, and social protection. The potential demographic dividend would instead become a drag on the economy.

The global approach to reap a demographic dividend includes policies supporting healthy ageing, increasing labour force participation among older individuals, and closing gender gaps in the workforce, to boost growth and rebuild fiscal buffers amid demographic headwinds. In the case of Sri Lanka, targeted strategies are needed urgently to facilitate the elderly to accumulate savings and investments to finance their post-retirement consumption. Similarly, it is important that Sri Lanka creates an ecosystem of affordable products and services for healthy, productive, and dignified lives for this demographic group.

To achieve this, Sri Lanka should focus on two strategic areas:

Prioritise the extension of economic opportunities into later life. This includes employment opportunities, such as phased retirement, flexible working arrangements, part-time work, and work-from-home arrangements targeted at older workers, to engage them in productive economic activities for a longer period. Such activities include adopting an age-friendly certification for businesses and employers to ensure businesses are welcoming, accessible, and responsive to older workers and clients. Another is to increase the minimum retirement age in the formal sector beyond 60 years of age. Moreover, increasing awareness on saving and investing for retirement and expanding related options—such as scaling up coverage of private life insurance and state-led contributory pension schemes—are essential.

Expand care options to not only protect the elderly but also create economic opportunities. This includes scaling up both free and fee-based elder care facilities to cater to all income types across both living-in and day-care options. Another is providing incentives, such as tax breaks or land, for the private sector to invest in care facilities and tie these to subsidised services for low-income elders. Additionally, existing infrastructure and systems, such as Development Officers at the Divisional Secretariats and local government community centres, could be harnessed to provide community-based care. Similarly, establishing and protecting the rights of elder care workers, providing formal Recognition of Prior Learning and certifying their skills would help attract and retain care workers.

By Dr Bilesha Weeraratne,
Research Fellow and Head of Migration and Urbanisation Policy Research at the Institute of Policy Studies of Sri Lanka

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Business

ADB announces financial support package to help Asia and Pacific

Published

22 hours ago

2026/03/27

Thilina Walpola

The Asian Development Bank (ADB) has announced a financial support package to help its developing member countries (DMCs) mitigate the economic and financial impacts resulting from the conflict in the Middle East.

“ADB will deliver rapid, flexible, and scalable assistance to help countries manage immediate pressures and strengthen long-term resilience, notably fast-disbursing budget support and trade and supply chain finance to secure the import of essential goods, now including oil,” said ADB President Masato Kanda. “This builds on our strong track record of supporting Asia and the Pacific through periods of global uncertainty.”

ADB has ample resources to safeguard existing and planned operations, while expanding emergency support in line with DMC needs, including utilizing its countercyclical lending buffer.

The bank is closely monitoring global market developments and their potential implications for economies across Asia and the Pacific, particularly regarding energy price volatility, inflationary pressures, and external account balances.

The latest ADB analysis indicates that disruptions to shipping routes have already increased costs and delivery times, while supply risks extend beyond energy to key industrial inputs such as petrochemicals and fertilizers, with serious implications for agriculture and food production. Tourism- and remittance-dependent economies face compounding vulnerabilities beyond these initial shocks. Furthermore, the conflict is increasing uncertainty and tightening financial conditions across the region, putting pressure on currencies and capital flows.

In response, ADB is ready to deploy timely financial and technical support to help DMCs manage risks, maintain macroeconomic stability, and protect vulnerable populations. There are two main components to ADB’s intervention. The first is fast-disbursing budget support to help DMCs facing heightened fiscal pressures, notably the use of the bank’s Countercyclical Support Facility to help governments stabilize their economies and mitigate the impact of shocks on the lives and livelihoods of those most at risk.

The second is ADB’s Trade and Supply Chain Finance Program (TSCFP), which supports the private sector to ensure critical imports, including energy and food, continue to flow. The bank has decided to reactivate support for oil imports under the program on an exceptional basis for this limited period. This decision acknowledges that economies and people across the region are being severely affected by the rapid surge in oil prices and supply chain disruptions.

ADB has begun discussions with all severely affected DMCs on possible immediate support and will continue to work closely with governments, development partners, and the private sector to ensure coordinated and effective responses to maintain economic stability and protect the poor and most vulnerable.

ADB is a leading multilateral development bank supporting sustainable, inclusive, and resilient growth across Asia and the Pacific. Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet. Founded in 1966, ADB is owned by 69 members—50 from the region.

Business

Global GIS celebrates 12th anniversary with grand opening of new office building

Published

22 hours ago

2026/03/27

Thilina Walpola

Jeewan Suranga, Director (L), and Nishshanka De Silva, Managing Director of Global GIS (Pvt) Ltd (R), opening the new head office

Global GIS (Pvt) Ltd, the pioneer of geospatial positioning solutions in Sri Lanka, celebrated its 12th year of successful operations with the grand opening of its new spacious 3-story head office building at 6th Lane, Pagoda Road, Nugegoda. The grand opening was followed by a series of religious events held at the new premises.

“As the pioneer in geospatial solutions in Sri Lanka, we are delighted to be celebrating this significant milestone in our journey by relocating to a more spacious premises warranted by the growth that we have been experiencing over the years. Furthermore, we have designed the new head office premises to add more value to our customers in terms of training, capacity building, and product demonstrations with a state-of-the-art auditorium,” stated Nishshanka De Silva, Registered Licensed Surveyor, Managing Director – Global GIS (Pvt) Ltd.

“This milestone serves as a testament to our dedication to innovation, leadership, and excellence. With our experience, our team of dedicated staff, and with the support of our long-standing partners, we are committed to providing our expertise in line with international best practices in the geospatial services industry,” he added.

“Global GIS operates a high-precision CORS (Continuously Operating Reference Stations) network that covers Sri Lanka, with strategically positioned GPS/GNSS receivers providing users with high-accuracy positioning data in real time”.

Business

NPCI International strengthens UPI Merchant Acceptance in Sri Lanka

Published

22 hours ago

2026/03/27

Thilina Walpola

Ritesh Shukla

For merchants:UPI provides access to a large, digitally savvy customer base, improves cash management, reduces dependence on physical currency and enhances operational efficiency

For travellers:UPI offers the convenience of real-time payments, transparent exchange rates, and a familiar, secure payment experience

NPCI International Payments Limited (NIPL), the international arm of the National Payments Corporation of India (NPCI), has reaffirmed its commitment to expanding Unified Payments Interface (UPI) merchant acceptance in Sri Lanka. The initiative aims to enhance cross-border payment experiences for Indian tourists, support Sri Lanka’s growing digital economy, and further strengthen the deep economic and cultural ties between India and Sri Lanka.

UPI, India’s real-time, account-to-account payment system, enables instant and secure transactions through mobile applications. Processing over 20 billion financial transactions monthly, it has emerged as one of the world’s most advanced digital payment infrastructures. With over 700 million UPI QR- touch points across India, its open, interoperable architecture and strong security framework allows it to integrate seamlessly with international payment ecosystems, including Sri Lanka’s LankaQR infrastructure.

India has consistently remained Sri Lanka’s leading source for tourism. Over 4,16,000 Indian tourists visited the island in 2024, and this number grew to 5,31,000 in 2025, accounting for the highest share of total international arrivals. With this year-on-year growth, the need for seamless and reliable payment solutions has become even more crucial. Indian visitors travel to Sri Lanka for leisure, weddings, shopping, and spiritual tourism, highlighting the importance of smooth, secure, and convenient payment options throughout their journey.

Through the collaboration between NPCI International and LankaPay, Indian tourists can make digital payments across Sri Lanka by simply scanning LankaQR using their preferred UPI-enabled mobile applications, minimising the need to carry or exchange physical cash. UPI payments are now enabled at leading establishments including Cinnamon Hotels, Taj Hotels, Barista, Keells Supermarket and Odel, amongst others.To support this growing corridor, NIPL has been actively engaging with key stakeholders in Sri Lanka, including the Central Bank of Sri Lanka, acquiring banks, and key merchants, to scale UPI acceptance in line with Sri Lanka’s domestic payment framework.

This integration has significant advantages for both merchants and customers. For travellers, UPI offers the convenience of real-time payments directly from their Indian bank accounts, transparent exchange rates, and a familiar, secure payment experience. For Sri Lankan merchants, it provides access to a large, digitally savvy customer base, improved cash management, and reduced reliance on physical currency, driving greater operational efficiency.

Ritesh Shukla, MD & CEO, NPCI International, said, “NPCI International is committed to building trusted, interoperable payment corridors that bring countries closer through technology. Our engagement in Sri Lanka reflects a shared vision to enhance digital payment acceptance, simplify travel and commerce for millions of people, and create value for local businesses and the wider economy. Through our partnership with LankaPay, we are advancing seamless, secure, and real-time transactions that strengthens the economic partnership between India and Sri Lanka.”

As UPI adoption progresses, NIPL will continue working closely with Sri Lankan regulators, ecosystem players, and merchants to extend acceptance across high-frequency sectors such as hospitality, retail, tourism, and essential services. Recognized by the IMF as the world’s largest real-time payment system, powering 49% of global instant payments, UPI presents a significant opportunity for Sri Lankan merchant to elevate the travel experience for Indian visitors, boosting economic activity and enhancing cross-border commerce between the two nations.