Many shun self-employment due to financial instability - SLSSB

Anjana Samarasinghe

SOCIAL SECURITY: The number of people involved in the informal sector and in self employment has not increased in the past few years, Chairman of the Sri Lanka Social Security Board SLSSB Lakshaman Hirimutugoda said.

There is no financial stability for this workforce at their retirement. Due to this reason many youth switch to jobs, which are financially secure. Most of the young females are seeking job opportunities in Government institutes, Hirimutugoda said.

'Nearly 60% from the working force are involved in the informal sector jobs and self employment in Sri Lanka. "However most of them are aware of the pension schemes available for them', he said.

SLSSB has several pension schemes for this segment such as Isuru, Thilina, Sahana which enable them to have monthly pensions ranging from Rs. 500 to Rs. 8000. There are contributory pension schemes for which the beneficiary has to make quarterly payments to receive a monthly income as a pension.

'At the moment we have 130,000 members and expect it will increase to 300,000 this year. Each month SLSSB provides around Rs. 1.3 million for 2411 pensioners through these schemes.

At least 60 to 65 members qualify to receive pensions monthly', he said. SLSSB has organised programmes to educate schoolchildren on self employment opportunities and how they could invest money at their retirement. They have also made arrangements to promote these schemes through the Gramasevaka and Samurdhi officials. They have also introduced two new schemes Sarana and Surakum. Surakum specially targets migrant workers.

According to the Department of Census and Statistics there is no significant growth in the self employment sector in Sri Lanka.

The Department said in 2005 total self employers recorded was 2.2 million and it was 29.3% from the total employed people in the country. In 2004 it was 28.3% and it was 29.6% in 2003. It was 28.6% in 2002. This was remaining in 28% to 29% in last few years.

The Department said that they have no records on the number of people who are involved in the informal sector as it is difficult to categorise them under one sector. However they have started to collect details on this segment from this year.