Abstract:
Saving is critical for the economic development of a country and can insulate it from
unwanted inflation and financial in instability as a result of international exposure. Sri
Lankan is currently experiencing low household saving rate and many people have
difficulty servicing debts.
Saving improvement is critical importance with regard to saving and country's ability
to finance future project. A literature review has been undertaken to distil the
determinants of saving in general and to observe the applicability of these
determinants to Sri Lankan peoples.
This research intend to analysis of the determinants of household saving behavior
with reference to questionnaires and quantitative answers from the respondents in six
divisional secretariats in Ampara District.
The key finding of the research indicates that the Sri Lankan peoples are financially
illiterate and not disciplined with regard to budgeting. They show a high dependency
ratio and the need for instant gratification.
The recommended outcome of this research indicates that the Sri Lankan government
should implement budgeting as part of the curriculum in primary and high schools.
People leaving employment before retirement should not be allowed to cash out more
than 50% of their pension fund, and the privet sector should be involved in educating
its employees with regard to budgeting and the benefits of saving, while creating a
environment that facilitates access to financial providers.
