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Sunday, 22 February 2015 22:41 - - {{hitsCtrl.values.hits}}
There is no proper definition on senior citizens but the common definition that can be used is the American definition i.e. an elderly or aged person, especially one who is retired or whose principal source of support is a pension or Social Security benefits. Indication is that these senior citizens depend on their pension or other financial savings earned during their work and any other source of income.
It is significant to examine as to why the politicians are so considerate towards senior citizens especially in Asia. As far as Sri Lanka is concerned, citizens over 55 years are around 4 million, 19% of the total population according to current available statistics. The elderly population of Sri Lanka has rapidly increased during the past few decades. Growth rate of the elderly population is higher than the growth rate of the total population in the country. On the other hand, the special feature is that nearly 27% of Sri Lankan eligible voters are senior citizens over 55 years.
Still most Sri Lankan households depend on the senior citizen’s earnings as chief occupant of the household. More responsibility lies on senior citizens in taking family decisions. As a matter of fact, the chief of household is always regarded highly reputable and knowledgeable with experience in life, equivalently qualified to take the responsibility.
Permanent government servants of Sri Lanka are entitled to a monthly pension after retirement from full service. Semi-government and private sector employees are entitled to EPF or ETF in terms of their service appointment. The EPF deduction from the salary plus the contribution made by the employer will be paid on retirement as Provident Fund. It is a fact that most retirees deposit this money in financial institutes and live on interest earned on the amount.
Obviously all financial institutes offer 1% additional interest rate in addition to the normal interest rate paid for fixed deposits of senior citizens. It appears that advertisements of financial institutions have given more publicity to interest.
This is because financial institutions have the advantage of a profitable transaction with a large sum of money being transferred from EPF and ETF.
During the last few years, senior citizens had to bear with patience of the pathetic situation due to payment of very low interest rate compared to previous years. In 2011 and 2012 the average interest rate was 15% and 13% respectively but these rates became decreased in early 2014 to 6% interest. Those who deposited their EPF and ETF funds depending on higher rates were adversely affected with the inflation and high cost of living. National financial bodies try to justify this issue as linked with development of the country which is unacceptable. The Government thinks that the offer of low rates will encourage other applicants to borrow loans and invest same on development structure. Thus the ignorance of the management is liable to cause damage to the future of senior citizens. Various articles published in the press have become fruitless. No doubt people are tempted to deposit their money at risk in other institutions where more interest is being paid.
National Budget
Normally the National Budget was scheduled to be presented to parliament in November. But the Budget for 2015 was presented to parliament by Former President Mahinda Rajapaksa as Finance Minister on 24 October 2014 which was thought to be election propaganda. It was proposed to give 12% annual interest rate for deposits of pensioners and elders who maintain their accounts in State Banks. But the effective date was not indicated.
However the Central Bank suddenly declared it effective from 1 January 2015. That was only seven days before the elections. It was a 15% increase as pledged by the common candidate in his manifesto in mid-December 2014. Most probably, the delay in implementing the budget proposals might have affected the campaign of Mahinda Rajapaksa. So-called high officials of the Treasury and Central Bank are totally responsible for the damage done to budget proposals.
The amended Saradiel or Robin Hood’s budget presented by New Finance Minister Ravi Karunanayake has given special emphasis to senior citizens with an annual interest increased by 15% to their fixed deposits. It has also been proposed to grant 50% concession on bus fare to senior citizens if travelled by Government transport. There are hidden objectives under this attractive proposal. But all senior citizens are awaiting the benefits.
Daily inquiries made from the State banks have revealed that necessary instructions have not been received as yet from the respective authorities regarding the new interest rates. The people who voted for better governance expect quick requisite measures as pledged at the Presidential Elections. Senior Citizens do not need to remind the Government of those promises and proposals made in their favour. The bureaucratic officials who are bound to give effect to this proposal seemingly disregard the important value of this issue. Regrettably, this kind of officials ignorant of the needs of the people will damage the image of national leaders of the country.
The change of Government in power at the recently held Presidential Elections lead to various unresolved issues. Cost of living was the main issue burning before the public. The ordinary masses do not care much about constitutional changes or the manner of governance of the previous regime. Their major concern is the fast supply of requirements of day-to-day needs.
The contribution made by senior citizens is inestimable with their long career of experience dedicated in building the nation. As a reputable sector of the society the senior citizen could still play a significant role as a demanding group. Therefore, political leadership of this country is bound to keep to their lips assured at the elections.
(The writer is the retired former Head of Corporate Affairs and Communications – Sri Lanka Export Development Board and Ex-Director of Sri Lanka Trade Centre in Maldives. He can be reached at [email protected])
