Thrift and savings: The legacy for a better tomorrow

By Keasila Jayawardena

To be thrift is to use money or any other resource with care and prudence without leaving room for wastage. Many centuries ago, man learnt that saving can bring success. He used bee honey to preserve the hunted meat. When he invented fire, certain foods were kept under ashes for preservation. So, man made it a habit to save and preserve a fraction of his valuables and possessions for future use.

The Sri Lankan family in the past had an extensive number of members. The income level of the families as well as the country was generally low and the usage of money, banking facilities and the access to banking facilities were less popular when compared to the modern banking and financial industry. Yet the mothers of the traditional Sri Lankan society showed that we are not strangers to saving and thrift by keeping aside a handful of rice from the daily consumption.

Yet it appears that the modern society does not attach much value to such concepts and attitudes because most people today tend to choose only the short-term benefits. They are seemingly not reluctant to spend their entire income and it has become their ultimate desire to purchase many of the products that flow into the modern market as a result of the rapid development in science and technology. But what if you lose your job unexpectedly or you are taken to bed by a sudden illness? Your sophisticated equipment would not come to your assistance at such an emergency. We should prepare ourselves to tackle such difficulties sensibly with a plan always at hand. Any individual can achieve the financial platform needed to confront these challenges successfully making it a habit to save a portion of what is earned or received. The virtues of thrift and saving come into our assistance in achieving this purpose.  

We can practice these virtues during various occasions of our day-to-day life. For instance, we can prepare a list of the items to be purchased at the market prior to our visit and thereby avoid purchasing goods that we actually do not need or serve our purpose. This will result in a saving. Also, by switching off electric appliances when not in use and minimising the usage of the telephone, electricity and water, monthly bills could be reduced and save yet another portion of our income.

As such, mobilising more domestic funds is essential in gaining financial security as an individual and funding and fuelling the expected growth as a country. Heavily influenced by this understanding, Finance Minister of the United Front Government Dr. N.M. Perera always looked at economic management from a long-term perspective and thus pursued a policy of containing present consumption via practical austerity or ‘tightening the belt’. As one of his many efforts made towards domestic development National Savings Bank came into being on 16 March 1972 out of his unmatched vision of austerity and unstinted mission of promoting savings. Since Ceylon Savings Bank, established in 1832, was one the said four institutions, National Savings Bank boasts of a century-old saving legacy since its inception.   

“It is my fortune that I am the Minister of Finance in a society whose people are accustomed to austere lives. We always stress the need and the importance of austere living, and that the savings of the country should be properly mobilised and increased. Based on small amounts of money saved through the mechanism of the savings pass books, National Savings Bank has now entered the banking sector which comprises three prominent banks; and, that is a very good augury,” stated Dr. N.M. Perera in introducing the Bill for the establishment of the National Savings Bank in the Parliament. In accordance with his political philosophy Dr. Perera did not want to establish an ‘ordinary’ bank in Sri Lanka but a bank that contributes to the ‘promotion of savings among the people, particularly among those with limited means, and the profitable investment of savings so mobilised’.

National Savings Bank thus connected the past and the future of the savings culture by operating as a more potential and an effective avenue to direct the surplus amounts of money lying in all sorts of odd places, hidden or buried, towards the development process of the country. Since then the Bank often strived to be the most reliable and sought-after savings and investment solution through prompt response, innovative measures, trust, mutual respect and integrity. Millions of people of this country who have chosen NSB as their savings and banking partner confirm that the Bank has acted in line with its vision and the interests of its valued customers and all the other stakeholders thus far.

With the implementation of the ultimate vision of the Government, ‘Saubhagye Dekma’ (Vision of Prosperity), our country has reached an important juncture in its history with a host of opportunities in hand. Yet, with the outbreak of COVID-19 pandemic, the economy and the living standards of the people of the country is at a stake and the Bank is striving to fulfil its duty of the hour by maintaining its operations and services without interruption in line with the Government’s effort of keeping the economy of the country resilient. 

The present circumstances, where many sectors of the society and the economy, including employment, production, businesses are in crisis, significantly indicates the importance and need of saving and thrift. With the initial outbreak of COVID-19 in the country, the Government has launched an agrarian project under the name, ‘Saubhagya Gewaththa’ (Garden of Prosperity) to give a helping hand to the people to encounter a probable food crisis that may erupt under the existing condition, by growing at least part of their daily needs: vegetables and fruits in their own garden. With the objective of cultivating the habit of saving through their own garden, National Savings Bank has initiated the promotion of this concept island wide in commemoration of the 93rd World Thrift Day on 31 October 2017. Under the program, 76,000 export quality mango and anoda plants were distributed among our customers. As the second phase of the project, 26,000 packets of vegetable seeds were distributed among our customers in commemoration of the 94th World Thrift Day on 31 October 2018.    

Primarily mandated with the task of inculcating the habit of saving among people, National Savings Bank always strives to ensure a saving for the people from many other aspects, in addition to offering a wide range of products and services to cater to their financial needs.

Sustainable Development Policy

As a measure in realising this effort, the Bank has developed a Sustainable Development Policy by selecting four Sustainable Development Goals out of the 17 Sustainable Development Goals introduced by the United Nations Development Program. Accordingly, the Bank has taken measures to address the Goals of Good Health and Nutrition, Quality Education, Clean Water and Sanitation and Affordable Energy. 

The Bank has already initiated a project to address the Goal of Quality Education in collaboration with the Ministry of Education and a program will be conducted in 81 selected national schools island wide where the pass rate of the G.C.E O/L Examination 2017 in English is lower, to increase the same. 

Another program has been implemented to address the Goal of Good Health and Nutrition in collaboration with the Ministry of Health and the Ministry of Education, under which, it is aimed to improve the nutrition level and decrease the obesity of the children in 10 selected schools in the Colombo District.

Since transition to a low carbon economy has become a necessity due to the increasing climate changes and natural disasters banking practices that contribute to reduce negative environmental impact should be essentially followed. Understanding correctly that the conservation of the environment, natural resources and the entire earth is also a saving, we always make it a point to integrate various environmental policies and programs into our operations to help mitigate the climate changes, promote biodiversity and protect the biosphere. We have embraced green finance as the key to the future of sustainable development. In this endeavor, we promote green lending schemes through NSB Eco that supports middle-income households to invest in solar energy. Further, we have commenced converting our branch buildings to use renewable energy sources while adopting branch-wide practices in responsible consumption of all resources.     

To promote the habit of saving among the people, 31 October, every year was declared as World Thrift Day at the first International Thrift Congress and accordingly, today is the 96th World Thrift Day which is commemorated by all banks and financial institutions around the world. If you have still not enjoyed the amazing benefits of saving, you can set off today. We invite all Sri Lankans to save with the premiere savings bank and the safest bank in Sri Lanka, National Savings Bank and inherit a secured future.

(The writer is Chairperson, National Savings Bank.)