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Lanka’s poor surge by 4 Mn to 31-pct of population: Survey
ECONOMYNEXT –Sri Lanka’s poor has surged by 4 million to 7 million since 2019 to 31 percent of the population in 2023, a survey has found as the country was hit by the worst currency crisis in the history of its central bank.
A 10,000 person survey by LirneAsia, a regional policy research organization, found that 33 percent of the respondents had skipped a meal and 47 percent reduced their meal sizes, after the currency crisis.About 27 percent of adults restricted their meals to feed children. The survey was conducted from October 10, 2022 to May 12, 2023.
Sri Lanka started an output gap targeting exercise (Keynesian stimulus) printing large volumes of money and a so-called flexible exchange rate backed by inconsistent policy collapsed in 2022 from 200 to 360 to the US dollar, tearing apart the monetary foundations of families, destroying real salaries and jobs.
Food prices soared partly due to a global commodity bubble fired by the Federal Reserve and also import restrictions from forex shortages and disruption to agriculture from a fertilizer ban.
Agro-chemicals were bannd to ‘save’ 300 to 400 million dollars in foreign exchange, the government said at the time.Rohan Samarajiva Chair of LirneAsia said he searched for historical data and found a thesis done by one M Salgado, which estimated gross domestic product during the Great Depression.
“He talked about the Great Depression affecting Sri Lanka and how our per capita income, which was about 80 dollars, went down by about half over a period of four years,” Samarajiva told a forum where research findings was released.
The Great Depression was a ‘deflationary collapse’ during the 1930s came in the wake of the Federal Reserve firing the ‘roaring 20s bubble’ after accidentally inventing the policy rate giving power to economists to mis-target interest rates, analysts have said.
Sri Lanka at the time however did not have a central bank to trigger a currency collapse. Food prices fell steeply during the Great depression. In a central bank currency crisis, the worst hit are wage earners whose salaries do not go up as prices rise with a collapse of the value of domestic money.
From March 2023, Sri Lanka central bank has appreciated the currency with deflationary policy, allowing food prices to fall.
In Sri Lanka poverty among Sri Lanka’s plantation worker families was already high at 31 percent by 2019, based on a household income and expenditure survey (HIES 2019) of the state statistics office.
“This has worsened in 2023. Now more than half our estate workers are living below the poverty line,” Tharaka Amarsinghe, a researcher at LIRNEasia said.
“Now more than half our estate workers are living below the poverty line.”
In the rest of rural Sri Lanka poverty has doubled from 15 to 32 percent from 2019 to 2023.In urban areas, which are densely populated, poverty tripled to 6 to 18 percent.About 32 percent of families had sold household assets and 50 percent had run down their savings.
Another 6 percent did not send their children to school, indicating that 203,000 children did not attend school. Parents had mentioned that they did not have exercise books and had to make up books from empty pages of old books, according to a panelist.Sri Lanka has a number of government income support programs, chief among them known as Samurdhi.
The survey found that 1.7 million families got Samurdhi benefits but only 40 percent were poor or below the official poverty line Gayani Hurrulle, Senior Research Manager at LirneAsia said. About 4 percent were in the richest income decile, 5 percent were in the next.
Only 17 percent who were on Samurdhi benefits have exited the program. Opaque criteria including attending political meetings were used by Samurdhi officials to admit new applicants, respondents to the survey had said.
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SJB: Litro, Laugfs making a killing by selling old stocks at inflated prices
… as Lakvijaya falters, power plants need over 2 mn litres of fuel daily
By Shamindra Ferdinando
The SJB yesterday (06) said that the NPP government owed an explanation as to why Litro Gas Lanka Limited and Laugfs Gas PLC were allowed to increase the prices of old stocks of domestic gas. Litro and Laugfs have increased the prices of 12.5 kg cylinder by Rs. 775 to Rs. 4,765 and by Rs. 1,070, to Rs. 5,700, respectively.
Convener of the Samagi United Trade Union Force (SUTUF) and the Samagi Joint Trade Union Alliance Ananda Palitha said they were aware of the state-owned gas supplier Litro and the private sector enterprise making a killing at the expense of consumers.
Acknowledging that gas and fuel prices had to be increased in view of the disruptions to the regular supply route through Hormuz Strait, the former petroleum sector worker emphasised it wouldn’t be fair, under any circumstances, to apply a new pricing formula to old stocks.
Taking advantage of the new West Asia war, the government (CPC) and three foreign private suppliers, namely Lanka IOC, Sinopec and R.M. Parks, increased prices of old fuel stocks, Palitha alleged, adding that his accusations, previously reported in the front-page of The Island, haven’t been disputed.
Responding to our queries, Palitha pointed out that Sri Lanka experienced gas supply disruption even just before the eruption of the Iran war.
Warning that further electricity tariff increases were around the corner due to failure on the part of the country’s only coal-fired power plant Lakvijaya to produce the required electricity, Palitha blamed the developing crisis on the use of low-quality coal for power generation.
Referring to recent media reports of fuel powered power plants needing 800,000 litres, daily, to meet the shortfall due to the crisis at Lakvijaya, Palitha said that the actual requirement was much more. Kelanitissa Combined cycle power plant alone required 1.3 mn litres of diesel daily, Palitha said, alleging the country was paying a very heavy price for corruption and mismanagement by the current dispensation.
According to Palitha Kerawalapitiya (Yugadanavi) Combined Cycle Power Plant required 750,000 litres of black oil/furnace oil. Together, those two power plants, namely Kelanitissa and Yugadanavi, required over 2 mn litres per day, the trade unionist activist said, warning the government of frightening economic consequences.
Having explained the requirements of other power stations in operation, Palitha said that the situation was so bad that the CEB, about three days back, began buying fuel worth Rs 1.7 bn from the Ceylon Petroleum Corporation on credit. Responding to another query, Palitha said that though the Iran war was having a major impact here, the NPP should accept responsibility for the corrupt coal deal and horrendous mismanagement of the power sector.
The government sought to downplay the crisis, claiming that Sri Lanka received Indian and Chinese support to meet its energy requirements, Palitha said. However, foreign powers were exploiting the situation here to advance their agendas, Palitha added, urging the government to come out clean.
India was increasing its hold on Sri Lanka, the trade union activist said, noting that Sri Lanka had recently declared its intention to develop a section of the Trincomalee oil tank farm together with India. According to Palitha, Indian Prime Minister Narendra Modi himself had asked President Anura Kumara Dissanayake to fast-track the project.
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UN Regional Director launches SL’s first Country Gender Equality Profile during official visit
UN Women Regional Director for Asia and the Pacific, Christine Arab, concluded a two-day official visit to Sri Lanka (25–26 March), emphasising that closing gender gaps in labour force participation, access to economic opportunities and decision-making are critical to the country’s inclusive recovery. She also launched the Sri Lanka Country Gender Equality Profile (CGEP), a comprehensive analysis designed to inform evidence-based policymaking and strategic investments.
The CGEP notes that despite achieving high human development levels and ranking first in South Asia by 2022, Sri Lanka has continued to regress on gender equality markers, falling sharply from 16th place in the Global Gender Gap Index in 2010 to 130th by 2025 – a decline of over 100 places in just 15 years.
The publication features detailed gender statistics on women’s economic and political participation, education, health and morbidity, poverty and social protection, safety and security, as well as the gendered impacts of climate change and disasters. It also includes analysis of the country’s legal and institutional frameworks, acknowledging positive judicial and administrative reforms, while observing that persistent and layered inequalities and discriminatory social norms continue to undermine the rights of many women across the country. The profile concludes with recommendations for gender-transformative governance.
During her visit, Arab held a high-level discussion with the Minister of Women and Child Affairs, Saroja Savithri Paulraj, focusing on strengthening collaboration on policy reform, women’s economic empowerment, and efforts to end violence against women and girls.
“Gender equality is fundamental to Sri Lanka’s inclusive recovery and long-term resilience,” said Arab. “Data, strong institutions and meaningful partnerships are essential to ensuring that women and girls can fully contribute to and benefit from the country’s development.”
She also met with the High Commissioners of Australia and Canada, and their teams, and with the Embassy of Japan in Sri Lanka to reinforce partnerships supporting inclusive development and women’s leadership. Arab met members of Sri Lanka’s National Commission on Women (NCW) underscoring the importance of community-driven change and women’s voices in shaping policy.
Engagement with civil society organizations was another key component of the visit. Speaking during the discussion, Samitha Sugathimala, Programme Director, Foundation for Innovative Social Development (FISD), emphasized that “the shrinking space for civil society remains a critical challenge, particularly for organizations working on gender equality and social justice. In such contexts, collective action among civil society actors is not just important but essential to resist pushback, amplify marginalized voices and sustain community-driven change.”
In all her engagements, Arab reiterated the importance of strengthening institutions, investing in data and fostering multi-stakeholder partnerships to accelerate progress on gender equality.
The keynote address by Dr. Radhika Coomaraswamy, former United Nations Under-Secretary-General and Special Representative of the Secretary-General for Children and Armed Conflict, and former Chairperson of the Human Rights Commission of Sri Lanka, provided an in-depth analysis of the state of gender equality in Sri Lanka. It grounded these priorities in the country’s lived realities and highlighted persistent structural challenges.
A panel discussion, moderated by Arab, brought together current and former members of independent commissions to collectively explore the structural and institutional barriers that continue to impede progress, examine gaps in accountability and rights protection, and identify priority reforms required to drive meaningful, gender responsive governance in the final stretch towards 2030.
Panelist Dr. Padma Gunaratne, Member, NCW (2025–present) and Consultant Neurologist, stated that “Sri Lanka stands at a critical moment to strengthen its gender governance architecture. In this regard, it is essential to ensure that the National Commission on Women is both independent and well-resourced, while also clarifying and reinforcing the mandates of key institutions.”
Arab also appeared in an exclusive national television interview on Face to Face, where she highlighted the economic and social imperative of advancing women’s empowerment, noting that “investing in women is not only a matter of rights, but a driver of economic growth and sustainable development for Sri Lanka.”
UN Women remains committed to working alongside the Government of Sri Lanka, development partners and civil society to advance policies and programmes that promote equal rights, leadership opportunities, and economic participation for women and girls across the country.
News
Programme to expand cadet corps in schools to promote national reconciliation
A programme to expand cadet activities in schools to promote national reconciliation and unity among the country’s youth was discussed at a workshop held recently in Jaffna.
The workshop, organised by the National Cadet Corps (NCC) in collaboration with the Ministries of Education and Defence, was held at the auditorium of the Northern Province Governor’s Office on the 17th under the patronage of Northern Province Governor N. Vethanayahan.
Officials said the expansion of cadeting in schools had been identified as a timely initiative to strengthen bonds among young people across communities while fostering discipline, teamwork and leadership skills.
Addressing the gathering, NCC Director Major General A.P.C.R. Premathilake briefed participants on plans to recruit new Cadet Platoon Officers and to establish additional cadet platoons in schools across the region.
The National Cadet Corps, which has a history of nearly one and a half centuries, has played a key role in nurturing disciplined and responsible youth while encouraging respect for diversity and teamwork among students.
The workshop was attended by 88 principals and deputy principals from schools in the Jaffna District. Officials said their participation was aimed at encouraging schools in the Northern Province to actively introduce or expand cadet units.
Also present were the Secretary to the Northern Province Governor, the Secretary to the Northern Province Ministry of Education, Zonal Directors of Education in the Jaffna District, and several senior officers of the National Cadet Corps.
Authorities said strengthening cadet activities within the school system would help build stronger relationships among students from different backgrounds while contributing to the development of responsible future leaders.
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