📈 Silver Economy: Unlocking Sri Lanka’s Ageing Demographic

With over 18% of the population currently aged 60+—projected to reach 25% by 2041—Sri Lanka faces a critical shift from a potential social burden to a productive Silver Economy. • Economic Participation & Challenges 49% of the 55-64 age cohort is currently economically inactive. Labour force participation stands at only 36% for males and 11% for females in this bracket. Retirement at 60 years restricts formal employment, pushing many into the informal sector and leading to skill underutilization. • Financial Vulnerability Only 31% of those above retirement age receive a pension; 91.7% receive no income from savings. The 65+ demographic recorded the highest multidimensional poverty rate at 17.9% (pre-crisis data). The economic old-age dependency ratio is projected to hit 29.2% by 2030. • The Looming Care Crisis A deficit of 149,076 long-term care workers is projected by 2037. Three-generation households are expected to decline from 19% to 5% by 2060, increasing demand for commercial care and institutional care. • Strategic Recommendations Extend working lives through flexible work, WFM arrangements, and raising the formal retirement age. Develop an ecosystem of affordable elder care services, including professional home-based care and day-care centers. Promote private life insurance and contributory pension schemes to ensure post-retirement financial independence. Based on analysis by Dr. Bilesha Weeraratne (2026).