Business
Prioritising Child-Friendly Policies: Addressing Sri Lanka’s child malnutrition crisis
By Dr Nisha Arunatilake
Even before the onset of COVID-19, malnutrition stood as a significant driver of multi-dimensional poverty among children in Sri Lanka. Startling data from the Department of Census and Statistics (DCS) in 2019 revealed that one in three children aged 0 to 4 who are multidimensionally poor, are either underweight or stunted. The multiple crises that affected Sri Lanka since 2020 have only exacerbated the already precarious nutrition situation in poor households. This blog argues the need for prioritising social policies focused on children to ensure sustained investment in human capital.
Crisis Impact on Government Initiatives
In response to the pressing nutrition issues in the country, successive governments have introduced several initiatives to maintain the minimum required nutrition levels to ensure unhampered growth and development. However, the crisis affected several of these nutrition programmes, depriving households of access to much-needed social assistance for maintaining nutrition, when it was needed the most.
One such initiative that was adversely affected was the Triposha programme. Triposha is a nutrient-dense food supplement given to pregnant mothers and young children affected by malnutrition. During the crisis, supply chain disruptions and issues of sourcing ingredients necessary for production resulted in a 51% drop in the production of Thriposha in 2020. This resulted in many identified households not receiving nutrition assistance through Triposha.
Another programme adversely affected by the economic crisis was the breakfast programme for preschool (BPS) children. The BOS provides children in selected pre-schools with a daily nutritious breakfast according to the Ministry of Health guidelines. In 2017, a sum of LKR 30 was allocated per child per meal for this programme. Despite high food inflation, this amount was not revised, making it impossible to supply meals as specified by the Ministry of Health.
The Plight of the Urban Poor
A study by the Institute of Policy Studies of Sri Lanka (IPS) finds that the recent economic crisis had devastating effects on the food environment in urban underserved settlements (USSs). According to retail and eatery owners serving these communities, food prices have skyrocketed during the economic crisis. The price of nadu-rice, the cheapest variety of rice in the market, doubled from LKR 100 in August 2021 to LKR 220 in August 2022. The prices of other staples frequently consumed by poor households, like dhal, eggs, dried fish and dried sprats, also increased several folds.
The crisis also reduced the availability of food in the market. The policies introduced by the government to contain the import costs, such as the chemical fertiliser ban and food imports, reduced the variety of food in the market. Further, the vendors were storing less expensive food items in the market as the demand for expensive food items reduced due to low affordability.
As explained by a retail owner in the area:
“I used to stock 50kg of rice earlier, now, I only stock 5kg of rice.”
“We used to keep stocks of green gram and cowpea. But now only one or two customers buy those items, so I do not stock them anymore.”
Coping with Food Inflation
The households in the USSs were using various methods to cope with food inflation. Most stopped eating from outside and reduced buying snacks. Consumption of milk, vegetables, fruits, and meat has all been reduced. One of the main sources of fat for USS residents, coconuts, has also declined during the crisis. As explained by some of the residents:
“We used to drink tea with milk in the morning and afternoon. Now we can only have milk tea in the morning.”
“We used to eat about 250g of vegetables per meal earlier. Now we make the same amount of vegetables last for two meals.”
“We only eat chicken once or twice a week. We try to manage mainly with dried fish and eggs for protein.”
“We rarely eat fruits now. Fruit is expensive. If we buy fruit, we don’t have money for other food.”
“We used to eat about one coconut a day earlier. Now we make one coconut last several days, as the price of coconuts has increased.”
The above findings show that households were either marginally or moderately food insecure during the economic crisis (See infographic). Households in USSs have compromised on food quality and variety, or reduced food consumption due to the crisis.
Conclusion
The findings from Sri Lanka emphasise the pressing issue of child malnutrition, which has only worsened amidst recent crises. Although there are several government initiatives to improve the nutrition levels of children in the country, their operations were severely affected by the economic crisis.
More attention needs to be paid to sustaining the social policies focusing on children, particularly during times of crisis. Only by doing so, we can ensure that children’s development is not compromised due to crisis and that they have the opportunity to thrive, regardless of the adversities they face.
Link to original blog: https://www.ips.lk/talkingeconomics/2023/10/11/prioritising-child-friendly-policies-addressing-sri-lankas-child-malnutrition-crisis/
Dr Nisha Arunatilake is the Director of Research at IPS. She heads the Labour, Employment and Human Resource Development unit at the IPS. Her research interests include labour market analysis, education and skills development, migration and development, and health economics. She holds a BSc in Computer Science and Mathematics summa cum laude from the University of the South, USA and an MA and PhD in Economics from Duke University, USA. (nisha@ips.lk)
An International Monetary Fund (IMF) team led by Evan Papageorgiou visited Colombo from April 3 to 11, 2025. After constructive discussions in Colombo, Mr. Papageorgiou issued the following statement:
“Sri Lanka’s ambitious reform agenda supported by the IMF Extended Fund Facility (EFF) continues to deliver commendable outcomes. The post-crisis growth rebound of 5 percent in 2024 is impressive. Inflation declined considerably in recent quarters and has fallen to ‑2.6 percent at end-March 2025. Gross official reserves increased to US$6.5 billion at end-March 2025 with sizeable foreign exchange purchases by the central bank. Substantial fiscal reforms have strengthened public finances.
“The recent external shock and evolving developments are creating uncertainty for the Sri Lankan economy, which is still recovering from its own economic crisis. More time is needed to assess the impact of the global shock and how its implications for Sri Lanka can be addressed within the contours of its IMF-supported program.
“The government’s sustained commitment to program objectives is ensuring policy continuity and program implementation remains strong. Going forward, sustaining the reform momentum is critical to safeguard the hard-won gains of the program and put the economy on a path toward lasting macroeconomic stability and higher inclusive growth.
“Against increased global uncertainty, sustained revenue mobilization efforts and prudent budget execution in line with Budget 2025 are critical to preserve the limited fiscal space. Boosting tax compliance, including by reinstating an efficient and timely VAT refund mechanism, will help contribute to revenue gains without resorting to additional tax policy measures. Avoiding new tax exemptions will help reduce fiscal revenue leakages, corruption risks and build much needed fiscal buffers, including for social spending to support Sri Lanka’s most vulnerable. Restoring cost recovery in electricity pricing will help minimize fiscal risks arising from the electricity state-owned enterprise.
“The government has an important responsibility to protect the poor and vulnerable at this uncertain time. It is important to redouble efforts to improve targeting, adequacy, and coverage of social safety nets. Fiscal support needs to be well-targeted, time-bound, and within the existing budget envelope.
“While inflation remains low, continued monitoring is warranted to ensure sustained price stability and support macroeconomic stability. Against ongoing global uncertainty, it remains important to continue rebuilding external buffers through reserves accumulation.
“Discussions are ongoing, and the authorities are encouraged to continue to make progress on restoring cost-recovery electricity pricing, strengthening the tax exemptions framework, and other important structural reforms.
“The IMF team held meetings with His Excellency President and Finance Minister Anura Kumara Dissanayake, Honorable Prime Minister Dr. Harini Amarasuriya ; Honorable Labor Minister and Deputy Minister of Economic Development Prof. Anil Jayantha Fernando, Honorable Deputy Minister of Finance and Planning Dr. Harshana Suriyapperuma, Central Bank of Sri Lanka Governor Dr. P. Nandalal Weerasinghe, Secretary to the Treasury Mr. K M Mahinda Siriwardana, Senior Economic Advisor to the President Duminda Hulangamuwa, and other senior government and CBSL officials. The team also met with parliamentarians, representatives from the private sector, civil society organizations, and development partners.
“We would like to thank the authorities for the excellent collaboration during the mission. Discussions are continuing with the goal of reaching staff-level agreement in the near term to pave the way for the timely completion of the fourth review. We reaffirm our commitment to support Sri Lanka at this uncertain time.”
The Commercial Bank of Ceylon has transformed its iconic ‘Foreign Branch’ into the ‘Corporate Branch,’ reaffirming its commitment to delivering dedicated, comprehensive financial solutions to corporate and trade customers.
The Bank said this transformation represents a new milestone in its illustrious journey, and resonates with the rich commercial heritage of Colombo, a city that has long served as a vital trading hub in the region.
Strategically located at the Bank’s Head Office at Commercial House, 21, Sir Razeek Fareed Mawatha (Bristol Street), Colombo 1, this rebranded Corporate Branch stands as a first of its kind in Sri Lanka —a premier financial hub tailored exclusively to the needs of corporate customers, the Bank said. The transformation aligns with the Bank’s vision of providing unparalleled service excellence, bespoke financial solutions, and fostering long-term business partnerships.
Commenting on this strategic initiative, Commercial Bank’s Managing Director/CEO Sanath Manatunge stated: “It is our aspiration that just as the historic Delft Gateway, at which our Head Office is located, once opened the path to the Dutch Fort, our Corporate Branch will chart a new era of enduring and prosperous business collaborations, that will extend beyond Sri Lanka’s shores.”
Fits Retail has partnered with retail giant Abans PLC to showcase the iconic DeLonghi coffee machines at two of Colombo’s most prestigious locations: Abans Elite Colombo 3 and Abans Havelock City Mall showrooms.
At these dedicated demonstration zones, visitors can discover the unparalleled precision engineering and user-friendly technology that have made DeLonghi machines the preferred choice for discerning coffee lovers in more than 46 countries worldwide. Renowned for consistently delivering café-quality espresso, cappuccino, and even specialty cold brews, DeLonghi machines exemplify Italian innovation at its finest.
Yasas Kodituwakku, CEO of Fits Retail, expressed excitement about the collaboration: “This partnership represents our unwavering commitment to bringing global coffee excellence to Sri Lankan connoisseurs. With Abans PLC, we’re creating more than just demonstration spaces; we’re curating premium destinations for an authentic coffee experience.”
“As pioneers of premium lifestyle experiences in Sri Lanka, our collaboration with Fits Retail aligns seamlessly with our vision of elevating everyday moments into exceptional experiences,” said Tanaz Pestonjee, Director Business Development at Abans PLC.
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