News

Poverty has increased from 11% to 26% during past four years

Published

2 years ago

2024/04/17

WB: Sri Lanka needs ‘robust and credible structural reforms’

Poverty in Sri Lanka has increased over the past four years, from 11 percent in 2019 to 26 percent in 2024, and the country needs ‘robust and credible structural reforms,’ says the latest report released by the World Bank.

The WB report, titled ‘Sri Lanka Development Update 2024: Bridges to Recovery,’ says that more than a quarter of the Sri Lankan population living in poverty and unprecedented economic crisis that engulfed the country in 2022 had affected the masses. “Households have adopted risky coping strategies to deal with lower incomes and price pressures, including using savings, taking on more debt, and limiting their diets. Food insecurity rose during the second half of 2023, with 24 percent of households being food insecure.”

It has found that food insecurity and malnutrition have increased, while poverty has doubled and the inequalities have widened. “Approximately 60 percent of households experienced a decline in income due to reduced work hours or job losses. The implementation of recent structural reforms, including cost-reflective utility pricing and new revenue measures, helped macroeconomic stability but strained household budgets.”

The report indicates that labour market trends in Sri Lanka have been affected by widespread closures of micro-, small- and medium-enterprises. In the third quarter of 2023, the labour force participation rate in the urban sector dropped to 45.2 percent, down from 52.3 percent in 2019. Youth unemployment, especially young adults (aged from 25–29), rose to 17.7 percent between the second and third quarters of 2023.

World Bank Director for Maldives, Nepal and Sri Lanka, Faris Hadad-Zervos noted: “Sri Lanka’s economy is on the road to recovery, but sustained efforts to mitigate the impact of the economic crisis on the poor and vulnerable are critical, alongside a continuation of the path of robust and credible structural reforms. This involves a two-pronged strategy: first, to maintain reforms that contribute to macroeconomic stability and second, to accelerate reforms to stimulate private investment and capital inflows, which are crucial for economic growth and poverty reduction.”

The Sri Lankan government is also in the process of privatising, commercialising or closing loss-making state-owned enterprises which has left many having to seek better-paying jobs. Sri Lanka’s already dilapidated public health and education systems have been plunged into crisis by government funding cuts.

The World Bank report states: “17.5 percent of households indicated that they limited their education expenses (including on stationery and uniforms) to deal with rising costs, and most households have changed their health treatment procedures since March 2022 due to a lack of funds.”

In March, Sri Lanka’s Department of Census and Statistics (DCS) stated that the minimum monthly expenditure per person in Sri Lanka has increased by 144 percent since 2019. The amount is calculated on the basis of what is required to fulfil the basic monthly needs of an individual, which in 2019 was 6,966 rupees ($23). This near-starvation level amount has now catapulted to 17,014 rupees per month.

“The economy contracted by 2.3 percent in 2023, despite growth in third and fourth quarters (1.6 and 4.5 percent, respectively) following six quarters of contraction. This was driven by shrinking construction and mining, financial and IT services, and textile manufacturing, amid weak demand, tight private credit, and shortages of inputs, and was partly offset by growth in transport, accommodation, food, and beverage services, resulting from a rebound in tourism. Inflation remained benign, after declining to single-digit levels in July 2023, supported by currency appreciation and improved supply. However, with the recent spike in food prices and pass-through of fuel and utility prices, headline inflation as measured by the Colombo Consumer Price Index increased to 5.9 percent in February 2024. Labour force participation declined (from 49.8 to 48.8 percent between 2022 and third quarter of 2023), especially in urban areas. Households have adopted risky coping strategies to deal with lower incomes and price pressures, including using savings, taking on more debt, and limiting their diets. Food insecurity rose during the second-half of 2023, with 24 percent of households being food insecure,” says the report.

All News Advertisement

Up Next

Some MPs get impatient with delay in issuing their duty-free vehicle permits

Don't Miss

Initial restricted discussions between SL and members of ad hoc group of bondholders concluded

Click to comment

News

Navy Commander attends Trans-Regional Seapower Symposium in Italy

Published

10 hours ago

2026/10/12

Priyan

The Commander of the Sri Lanka Navy, Vice Admiral Damian Fernando attended the 15th edition of Trans-Regional Seapower Symposium, organised by the Italian Navy in Venice in Italy, on 6 and 7 October 2026.

The symposium was held at the Italian Navy‟s historic Arsenal in Venice under the theme “From Regional Waters to Global Influence: Generating Effects Across the Midland Seas of the World”.

Organised biennially by the Italian Navy since 1996, the symposium brings together heads of foreign navies, naval representatives, academics, industry representatives and scientific researchers to discuss maritime security and the role of regional maritime dynamics in shaping the global balance.

The sessions of the symposium aimed to present an analysis of the relevance and influence of regional dynamics on global balances and their relative implications within the maritime domain.

Thus, topics discussed included; ‘Geopolitical Background: Global and Regional Dynamics in Comparison,’ ‘Pivotal Role of Cooperation among Regional Alliances as Security Providers,’
‘Maritime Regional Security Complexes, Global Order and Sea-Based Flows – What Role for Navies?,’ ‘New Arctic Chessboard: Seapower, Resources and the Race for Connectivity,’ ‘Future-
Proof Capabilities: A Naval Force Designed to Operate Across Oceans, Act Within Regions and Deliver Effects on the Ground,’ ‘Future Seas: Industrial Scale, Decisive Mass and Innovation –
Securing the Maritime Domain’ and ‘Future-Proof Leadership: Preparing Maritime Commanders and Sailors for Complexity,’

Cooperation fostered through symposiums of this nature, which bring together a multitude of global maritime stakeholders, will enable the Sri Lanka Navy to respond collectively to maritime
challenges, in pursuit of maintaining a safe, secure, prosperous and a stable ocean region.

Latest News

Heavy showers about (100-150) mm are likely at some places in the Central, Sabaragamuwa, Uva and Southern provinces

Published

11 hours ago

2026/10/12

Priyan

WEATHER FORECAST FOR 13 October 2026
Issued at 2.00 p.m. on 12 October 2026 by the Department of Meteorology

A low-pressure area may form over the southeastern Bay of Bengal by 13 October.

Under the influence of this system, an increase in rainfall is expected over the island and the deep and shallow sea areas around the island during the next few days from tomorrow (13).

The general public, as well as the naval and fishing communities, are requested to be attentive to the future forecasts and bulletins issued by the Department of Meteorology in this regard.

Heavy showers about (100-150) mm are likely at some places in the Central, Sabaragamuwa, Uva and Southern provinces.
Fairly heavy showers above 75 mm are likely at some places in the other areas of the island. Showers or thundershowers will occur in most parts of the island.

The general public is kindly requested to take adequate precautions to minimize damage caused by temporary localized strong winds and lightning during thundershowers.

Misty conditions can be expected at some places in the Sabaragamuwa, Central and Uva provinces during the early hours of the morning.

News

Elephant enrichment programme centred on the Thabbowa Reservoir proves successful

Published

11 hours ago

2026/10/12

Priyan

As part of the new government’s initiative to formulate scientifically grounded, long-term solutions to the human-elephant conflict, a programme aimed at sustainably fulfilling the natural food and water requirements of wild elephants within forest ecosystems is being successfully implemented.

Spearheaded by the Ministers of Environment, guided by the Secretary to the Ministry of Environment, and supported by all affiliated institutions, this initiative transforms tanks (reservoirs) and forest tracts in high-conflict areas into enriched zones for wild elephants.

To facilitate this forest enrichment drive, 113 forests have already been declared protected reserves under the Vanaspathi National Programme. The initial phase of establishing tank enrichment zones was launched around the Kala Wewa and Thabbowa reservoirs.

Accordingly, the Ministry of Environment and ‘Clean Sri Lanka’ jointly carried out an initiative to develop these reservoir
catchments into designated enrichment zones.

A year ago, an operation to eradicate invasive plant species that posed a severe environmental threat to the Thabbowa reservoir precinct was conducted with the comprehensive labour and
technical support of government officials, environmental scientists, the tri-forces, and residents.

Since the new government’s policy of “A Sustainable Biosphere, An Evergreen Life” is practically implemented at the ground level, officials from the Department of Wildlife Conservation and the Department of Forest Conservation have been continuously monitoring the ongoing progress and
field conditions of this collaborative project under ministerial directives.

During these field reviews, it was observed that following the removal of invasive flora, the tendency of wild elephants to wander into villages searching for sustenance has notably declined; instead, they increasingly frequent the naturally regenerated grasslands along the reservoir fringes.

Having proven this ecological model’s success through trials at Thabbowa and Kala Wewa, the Ministry of Environment has finalized all necessary blueprints to swiftly replicate it across other sensitive wetland systems and reserve zones where human-elephant conflict is prevalent.

By enriching wildlife habitats, this sustainable, eco-friendly, and scientific strategy protects human lives and cultivated farmlands while securing space for wild elephants in their native habitats, continuing to show promising results across high-conflict regions.