Sri Lanka to introduce pension scheme for self-employed

The Government will amend the Sri Lanka Social Security Board Act to introduce a contributory pension scheme for self- employed persons, Finance Ministry sources disclosed.

State Minister of Social Empowerment Anupa Pasqual has submitted a proposal to the ministry to amend the Act and devise the scheme in consultation with the Labour Ministry, a high official of the Finance Ministry told Business Times.

The contributory pension scheme for self-employed who are not members of the existing social security schemes is to be presented in parliament soon, he divulged.

Existing social security and pension schemes are to be expanded ensuring better social protection for selfemployed persons countrywide, State Minister of Finance Shehan Semasinghe said.

He noted that a decision has been taken to restructure the Sri Lanka Social Security Board and devise a necessary plan and methodology to expand and extend the existing social security scheme enrolling more self-employed.

The Social Security Board is to be transformed into an institution that is not a burden to the Treasury and provides more services to the people by introducing novel and innovative income generating schemes.

All persons who are not entitled to receive pension or are not holding pensionable jobs are eligible to enroll in these schemes.

This helps to encourage self-employed persons to continue in their respective occupations and to develop their capabilities and skills, he said adding that it also improves the living standard of self-employed persons.

There are also contributory pension schemes for the informal sector workers which include the Farmers Pension and Social Security Benefit Scheme (FMPS), Fishermen’s Pension and Social Security Benefit Scheme (FSHPS) and the Selfemployed Persons Pension Scheme (SPPS).

The coverage of the SPPS was around 11 to 18 per cent of the workforce and the benefits from this scheme for members are inadequate for their living expenses and to keep them out of poverty.

Therefore benefits of the SPPS schemes should be enhanced and passed onto the entire self-employed population, he said pointing out that the Treasury is focusing attention on expanding other pension schemes in the informal sector as well.