Introduction
Sri Lanka is on the cusp of a demographic transformation. With one of the fastest-ageing populations in South Asia, the nation faces a future where one in four citizens will be over 60 by 2040. While this trend reflects improved life expectancy and healthcare, it also brings a looming socio-economic challenge: the rising cost of care.(reshaping the economy)
The Demographic Tipping Point
According to the Department of Census and Statistics, Sri Lanka’s elderly population has already crossed 15%. With fertility rates falling and younger generations migrating for work, the country is witnessing a widening dependency ratio — fewer working-age people supporting a growing number of elders.
This is not just a social issue. It is an economic fault line. The care gap — in terms of institutional support, trained caregivers, insurance coverage, and elderly-friendly infrastructure — is growing, and businesses, families, and the state are scrambling to catch up.
A Family Burden Becoming a National Burden
Traditionally, elder care in Sri Lanka has been the responsibility of families. But with changing household structures, urbanisation, and more women entering the workforce, this model is no longer sustainable.
Caregiving falls mostly on women, affecting their career progression and earnings.
Unpaid caregiving reduces productivity at a national scale — especially when younger, skilled adults leave the workforce to care for ageing parents.
Mental health and burnout are rising among family caregivers who have little to no support
Rising Healthcare Costs and Gaps in Infrastructure
Elderly citizens require more frequent medical attention — and Sri Lanka’s state healthcare system is already under strain.
- There is a shortage of geriatric specialists, especially outside urban areas.
- Private eldercare services are expensive and largely unregulated.
- Infrastructure — from public transport to housing — is not designed for an ageing population.
- This opens up a critical gap — and a major opportunity — for businesses to step in with affordable, quality solutions.
The Business of Ageing: A Silver Economy Emerging
While the challenges are undeniable, Sri Lanka is also entering what economists call the “silver economy” — an age-driven marketplace focused on seniors’ needs. Globally, this sector is worth over $15 trillion, and Sri Lanka is just beginning to see the ripple effects.
Key Opportunities for the Private Sector:
Eldercare Services:
- Day-care centres, home nursing, and assisted living facilities.
- Companies offering verified caregiver training programmes.
Healthtech & Medtech:
- Remote monitoring apps for chronic illnesses.
- Wearables for fall detection and emergency alerts.
- Telemedicine services tailored to senior needs.
Insurance & Financial Planning:
- Customised health insurance packages for older adults.
- Retirement planning services and pension schemes.
Real Estate & Urban Planning:
- Age-friendly housing and retirement communities.
- Accessible public spaces and transport infrastructure.
Consumer Goods & Services:
- Ergonomic furniture, easy-use appliances, and nutrition plans.
- Travel and leisure packages designed for older citizens.
- Businesses that address elder needs with dignity, accessibility, and affordability will not only capture an emerging market but contribute to long-term social stability.
The Policy Void — and the Need for Urgent Reform
Despite the clear trends, Sri Lanka lacks a coordinated national policy for elder care. Current efforts remain scattered across the Ministry of Health, the National Secretariat for Elders, and local authorities.
A robust public-private partnership model is urgently needed. Policy recommendations include:
- Tax incentives for companies that invest in eldercare services.
- National certification and regulation of eldercare providers.
- Expansion of public health insurance to cover age-related conditions.
- Investment in training geriatric professionals and caregivers.
- Mandatory elder-inclusive urban planning in municipal development.
- Without such reforms, the rising cost of care will lead to wider economic inequality, with only the affluent able to access decent elderly support.
Social Equity and the Risk of Displacement
There’s also a deeper human question at the heart of this crisis: what does ageing with dignity look like in Sri Lanka?
If we fail to act:
- Poor and rural elders will be left behind.
- Ageism may grow in the workplace and society.
- Families may face financial collapse due to long-term care responsibilities.
- Ageing is not a personal failure — it’s a predictable phase of life. Sri Lanka must treat it as such and plan accordingly.
Conclusion: Reframing Ageing as a National Priority
The ageing population is not just a social burden or economic liability. It is a call to innovate, adapt, and reform.
If tackled strategically, the care economy can generate jobs, open new markets, and improve quality of life — not just for elders, but for families, caregivers, and professionals alike.
Sri Lanka has a narrow window of time before the care crisis becomes unmanageable. The time to act is now.
