Business

Prioritising Child-Friendly Policies: Addressing Sri Lanka’s child malnutrition crisis

Published

2 years ago

2023/10/13

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)

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Business

SriLankan Airlines Update on Middle East Operations

Published

8 hours ago

2026/03/3

Rashi Nihara

03 March 2026; Colombo – As airspace in certain parts of the Middle East continues to remain closed due to the ongoing conflict, the following SriLankan Airlines flights scheduled to operate today have been cancelled:

Flight Route
UL 225 Colombo–Dubai
UL 226 Dubai–Colombo
UL 231 Colombo–Dubai
UL 232 Dubai–Colombo
UL 229 Colombo–Kuwait
UL 230 Kuwait–Colombo
UL 217 Colombo–Doha
UL 218 Doha–Colombo
UL 253 Colombo–Dammam
UL 254 Dammam–Colombo
UL 265 Colombo–Riyadh
UL 266 Riyadh–Colombo

We sincerely appreciate our passengers’ understanding and patience as these cancellations are implemented in the interest of their safety and wellbeing.

For more information, please contact: 1979 (within Sri Lanka); +94 11 777 1979 (international); WhatsApp +94 74 444 1979 (chat only); your travel agent; or visit www.srilankan.com

Business

Middle East escalation sends oil soaring; Sri Lanka faces price shock despite assurances on supply

Published

18 hours ago

2026/03/3

Thilina Walpola

Vessels have been forced to anchor as Iran threatens to close the Strait of Hormuz

Global oil prices surged sharply yesterday following coordinated US and Israel-backed strikes on Iran, and Tehran’s retaliatory attacks targeting US interests in the region, alongside escalating hostilities involving Hezbollah in Lebanon. The renewed instability in the Middle East – the artery of the world’s energy supply – has sent tremors through financial markets and triggered fresh anxiety in oil-importing nations such as Sri Lanka.

Brent crude climbed steeply in early Asian trading, with traders pricing in the risk of supply disruptions through critical maritime chokepoints, particularly the Strait of Hormuz, through which nearly a fifth of global oil passes. Market analysts say the spike reflects not only immediate supply fears but also the potential for prolonged geopolitical tension that could keep prices elevated for months.

Meanwhile, Asian equities reacted nervously to the unfolding crisis. Major indices across the region retreated as investors fled risk assets, concerned that higher energy costs could dampen growth and reignite inflationary pressures.

Asian oil and gas stocks – the only winner in Asian equity markets – rallied strongly, reflecting expectations of higher revenues amid rising crude prices. This divergence of falling broader markets alongside rising oil shares signals investor anticipation of higher inflation and weaker consumer demand in emerging markets like Sri Lanka.

Meanwhile, reports of increased Chinese crude purchases are further compounding market anxiety. If Beijing accelerates buying to secure strategic reserves in anticipation of supply constraints, global prices could climb even further because China’s procurement strategy has great influence on the world oil price.

“Should Chinese demand rise while Middle Eastern exports face disruption, the supply-demand imbalance could tighten considerably, amplifying volatility in global energy markets”, say global energy market analysts.

In Sri Lanka, long queues have begun forming at fuel stations amid fears of shortages and higher pump prices once new shipments arrive. The government has sought to calm public nerves, stating that sufficient stocks are available for approximately one month and that fresh supplies are being sourced from India and Singapore.

Deputy Minister of Tourism, Dr. Ruwan Ranasinghe said that as Sri Lanka imports refined products primarily from India and trading hubs such as Singapore, direct disruptions to Middle Eastern sea routes would not immediately interrupt supply chains. He maintained that there is no cause for panic buying.

In an unusual show of political maturity, Prasad Siriwardena, an Opposition MP from the Samagi Jana Balawegaya (SJB) urged the public to remain calm and refrain from hoarding, warning that artificial shortages could emerge if panic-driven stockpiling spreads.

However, former minister Wimal Weerawansa criticised the government for failing to build a strategic reserve of at least three months, arguing that Sri Lanka’s total dependence on imported fuel leaves it dangerously exposed to prolonged geopolitical shocks.

Weerawansa contended that the government failed to anticipate the likelihood of US-Iran tensions escalating into direct confrontation and should have proactively guided petroleum authorities to secure adequate reserves in advance.

Meanwhile, an independent analyst told this reporter on the condition of anonymity that the global economic spillover could have wide-ranging consequences on Sri Lanka, outlining five factors.

Energy costs that feed into transportation, manufacturing and food prices

Tighter monetary policy risks as the Central Bank may hesitate to cut rates if inflation resurges

Slower growth as consumers and businesses reduce spending when energy costs rise

A widening trade deficit as Sri Lanka would face increased import bills

Pressure on the Rupee as increased dollar outflows for fuel imports could strain foreign exchange reserves

In conclusion, he said, “One can only hope that diplomacy prevails before oil’s surge turns into a sustained economic storm for the global economy.”

by Sanath Nanayakkare

Business

How ‘distant wars can quickly arrive at the domestic pump’

Published

18 hours ago

2026/03/3

Thilina Walpola

Vehicles lining-up for petrol in Colombo as panic buying takes control.

The harsh economic realities behind soothing words

Sri Lanka’s fragile economic recovery faces a renewed external threat as escalating conflict involving Iran sends global oil prices sharply higher, raising concerns over inflation, foreign reserves and fiscal stability.

While authorities insist there is no immediate fuel shortage, economists warn that prolonged instability in the Middle East could trigger a familiar and painful chain reaction in an import-dependent economy still recovering from its worst financial crisis in decades.

The state-run Ceylon Petroleum Corporation (CPC) confirmed that the country currently holds sufficient petrol and diesel stocks for more than a month.

Energy Minister Eng. Kumara Jayakody assured that scheduled shipments remain unaffected and urged the public to refrain from panic buying, warning that artificial demand could disrupt smooth distribution.

But behind those reassurances lies a harsher economic reality: Sri Lanka does not need a physical fuel shortage to suffer — a sustained spike in global crude prices alone could be enough.

Market jitters intensified amid fears that any escalation could threaten shipping through the Strait of Hormuz, the narrow maritime corridor through which a significant share of the world’s oil supply passes daily. Even speculation of disruption has historically been sufficient to push prices sharply upward.

Sri Lanka sources refined fuel from multiple markets, including India and Southeast Asia. However, global benchmark prices ultimately determine import costs. If crude prices remain elevated, the country’s monthly fuel import bill could surge — placing fresh strain on dollar reserves.

Higher oil prices would ripple across the entire economy. Transport, electricity generation, manufacturing, agriculture and food distribution are all energy-sensitive sectors. A sustained price increase could reverse recent gains in inflation control.

The Central Bank of Sri Lanka has worked to stabilise inflation and the rupee through tight monetary discipline. Analysts caution that a renewed oil shock could complicate this effort, widening the trade deficit and pressuring the exchange rate.

“Sri Lanka is structurally vulnerable to energy price shocks. Even without direct supply disruption, higher global prices immediately translate into macroeconomic stress, a senior economic analyst said.

The government is currently operating under strict fiscal consolidation targets as part of its recovery programme. A rising fuel bill could expand subsidy pressures or force politically sensitive fuel price adjustments.

Any increase in administered fuel prices would inevitably feed into cost-of-living pressures, testing public tolerance amid ongoing austerity.

Beyond oil markets, instability in the Middle East carries another risk: remittances. The Gulf region remains a key source of foreign employment for Sri Lankans and a crucial inflow of foreign exchange.

Any economic slowdown or labour disruption in the region could dampen remittance flows, reducing one of the country’s most stable dollar lifelines.

An energy expert said for Sri Lanka, the Iran conflict is not merely a distant geopolitical event. It is a potential economic stress test at a moment when stability remains hard-won.

“Whether this turns into a temporary price spike or a prolonged oil shock will determine how severely it tests the country’s recovery trajectory. For now, policymakers are watching global markets closely — aware that in today’s interconnected economy, distant wars can quickly arrive at the domestic pump.”

By Ifham Nizam