Sri Lanka state-backed insurance plans under funded

‘Agrahara’ a medical insurance plan for state workers with 650,000 holders had claims of 1,138 million rupees in 2010, while contributions were only 595 million rupees, a finance ministry report showed.

The Treasury had pumped in 443 million rupees of tax money collected from the people to plug the difference.

Agricultural and Agrarian Insurance Board, which runs a crop insurance scheme and pension scheme for farmers and fishermen had contributions of 264.2 million rupees but claims of 287.6 million rupees.

The Treasury had pumped in 132 million rupees to keep in afloat.

The finance ministry said there was a mis-match between the contribution and payments resulting in a deterioration of pension and insurance funds.

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