News
UNDP report on vulnerability factors handed over to govt.
Debt, a lack of education, and the ability to adapt to disasters are factors that make most Sri Lankans feel vulnerable, says a new report, released yesterday (01 Sept.) by the United Nations Development Programme (UNDP) and the University of Oxford’s Poverty and Human Development Initiative (OPHI).
The Policy Report, titled ‘Understanding Multidimensional Vulnerabilities: Impact on People of Sri Lanka’ puts forth Sri Lanka’s first ever Multidimensional Vulnerability Index (MVI), which was derived using the National Citizen Survey (NCS) 2022-23 covering a representative sample of 25,000 households. The survey was conducted between November 2022 and March 2023 to capture the impact of the cascading crises on the people.
It demonstrates the overlapping challenges faced by Sri Lanka’s population and weaves together a novel set of indicators to capture vulnerabilities beyond traditional income-based measures.
The index includes 12 indicators, grouped under three dimensions: education, health and disasters, and living standards. Indicator selection was based on consultations with key stakeholders, including a technical advisory panel. The collaborative engagement process ensured that the MVI would appropriately reflect the complexity of vulnerabilities experienced by individuals and groups across Sri Lanka.
The national results of the MVI indicate that the key factors that impact vulnerability include household indebtedness, largely due to pawning items to purchase essential goods; years of schooling, disaggregated by gender; and adaptive capacity to disasters. In addition to these, working in informal jobs also makes individuals more vulnerable.
Commenting on the report, PM Dinesh Gunawardena said that it comes at a crucial time for Sri Lanka. “Given recent events, it is timely that the first Multidimensional Vulnerability Index (MVI) is developed for Sri Lanka, to ensure that those at the helm of policymaking will continue to be equipped with the information they need to determine where help is most needed.
“Therefore, I thank the team that has worked on this report and in developing the National Citizen Survey and the MVI for taking the initiative to do so, and I encourage all decision-makers, in the relevant Government institutions, as well as the private sector and civil society, to use this analysis to first understand and then implement measures to help move Sri Lanka away from vulnerability in the future.”
Dr. Sabina Alkire, Director, Oxford Poverty and Human Development Initiative (OPHI), University of Oxford, observed: “The MVI sheds light on the complex landscape of vulnerability in Sri Lanka, where 55.7 percent of the population, or 12.3 million people, experience multidimensionally vulnerability. Focused interventions, such as reducing indebtedness or enhancing disaster preparedness, are vital to build resilience. This exploratory MVI expands on Sri Lanka’s official Multidimensional Poverty Index by using 2022/23 citizen survey data and including a distinct tapestry of vulnerabilities.”
Highlighting the importance of the report, Ms. Azusa Kubota, UNDP Sri Lanka Resident Representative, said: “Amidst a rapidly shrinking fiscal space, deepening the understanding of these diverse experiences and vulnerabilities is an important first step towards designing impactful policy and programme interventions. The report’s findings have far reaching policy and programme implications as Sri Lanka embarks on a series of interventions to ensure sustainable, inclusive and green recovery pathways from the crises. We hope this report will influence and shape policies and interventions that prioritize the needs of vulnerable communities.”
Several districts, including Puttalam, Batticaloa, Mullaitivu, Kilinochchi, Ampara, Vavuniya, and Nuwara Eliya, exhibit multidimensional vulnerability, highlighting the need for focused interventions to address factors, like disaster preparedness, debt relief, water source accessibility, and female education. Thus, a nuanced, well-designed and comprehensive policy approach is recommended to improve the wellbeing of these communities.
The MVI sheds light on the complexity of existing vulnerabilities – with overall results suggesting targeted efforts in areas like debt, disaster preparedness, water source accessibility, and female education, emphasizing the need for multisectoral engagement to enhance the well-being of vulnerable communities in Sri Lanka. Ensuring that such data is up-to-date and comprehensive is a crucial first step in addressing these challenges and maintaining progress towards a more equal world.
The MVI for Sri Lanka is identified as the first ever vulnerability index using Citizen Science. However, this study is not without its limitations. The report acknowledges this and advocates for the inclusion of further criteria and inclusion of the MVI as part of National Data collection exercises.
The NCS was initiated by UNDP Sri Lanka, in collaboration with the Citra Innovation Lab and UNDP’s SURGE Data Hub, to capture a snapshot of vulnerabilities experienced by Sri Lankans as a result of the pandemic and the economic crisis.
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The Sun is directly overhead Warakapola, Aranayaka, Gampola, Bibile, Inginiyagala, and Akkaraipattu at about 12:12 noon today (08)
On the apparent northward relative motion of the sun, it is going to be directly over the latitudes of Sri Lanka from the 05th to 15th of April this year.
The nearest areas of Sri Lanka over which the sun is overhead today (08th) are Warakapola, Aranayaka, Gampola, Bibile, Inginiyagala, and Akkaraipattu at about 12:12 noon.
News
AKD admits import of substandard coal, blames technicalities and supplier
… announces temporary relief package
President Anura Kumara Dissanayake yesterday acknowledged in Parliament that the import of substandard coal had adversely impacted electricity generation.
“There’s an issue with the coal. That’s true,” the President said, addressing the House.
President Dissanayake maintained that the problem had not arisen from the tender process but from the failure of the supplier to deliver coal that met the required standards. “The issue did not arise from the tender process. It resulted from the supplier’s failure to deliver coal that met the required standards. I would also like to point out that coal is not tested by individuals through simple inspection or personal judgment; it is examined in certified laboratories,” he said.
The President went on to say that coal shipments are tested through certified laboratories before dispatch, and an initial payment of 80 percent was made after receiving laboratory certification confirming that the coal meets stipulated specifications.
The President said the balance 20 percent was released only after a second verification carried out by an Indian laboratory selected for the purpose in 2023. Tests had revealed that three shipments failed to meet the required specifications.
The President added that although some shipments had passed laboratory tests, operational assessments at the power plant indicated that the coal was not performing to the expected standard. As a result, the government had withheld the remaining payments for certain consignments, imposed penalties on some suppliers, and in a few instances suspended even the initial 80 percent payment.
He said the use of substandard coal would increase electricity generation costs as the shortfall would have to be compensated by alternative sources, such as diesel. However, he assured Parliament that the additional costs would be recovered from the coal suppliers and would not be passed on to consumers.
The President also said the government expected to receive the fourth and fifth tranches of financial assistance from the International Monetary Fund by the end of May. He told Parliament that Sri Lanka hoped to reach a staff-level agreement with the IMF by Thursday, which would enable the country to secure about USD 700 million in funding.
Meanwhile, the President announced a temporary increase in cash assistance under the Aswesuma welfare programme to provide relief to low-income households during the April festive season.
He said the government continued to face challenges in accurately identifying eligible beneficiaries but noted that Aswesuma remained the only available framework to determine eligibility. Under the scheme, current benefit categories include payments of Rs. 17,500, Rs. 10,000 and Rs. 5,000.
For April, the Rs. 17,500 allowance will be increased by Rs. 7,500 to Rs. 25,000, while the Rs. 10,000 payment will rise by Rs. 5,000 to Rs. 15,000. Beneficiaries in the transitional category will receive an additional Rs. 2,500. The temporary increases are expected to cost the Treasury about Rs. 8.5 billion and will apply only for the month of April.
Addressing electricity tariffs, the President said the adjustment that came into effect on April 1 had been determined earlier and was not linked to the present crisis. According to him, the increase for households consuming less than 30 units amounts to about Rs. 15 per month, while other tier increases translate to approximately Rs. 1 to Rs. 1.50 per day.
He said the government had considered three options to manage rising electricity costs: requiring the Ceylon Electricity Board to absorb the losses, transferring the burden entirely to the Treasury, or passing the cost on to consumers. Instead, the government opted for a shared approach involving the State, the public and the national power system operator.
Under this arrangement, consumers using less than 90 units of electricity will receive a subsidy during the next tariff revision. The government has allocated Rs. 5 billion per month for the programme, amounting to Rs. 15 billion over three months. The President said losses in the electricity sector during the same period were estimated at about Rs. 32 billion.
Turning to agriculture, the President outlined measures to stabilise fertiliser supply amid rising global prices. He said the Department of Agriculture currently held about 14,000 metric tonnes of urea imported at the previous price, while private companies also possessed stocks.
Following discussions with fertiliser suppliers, companies had agreed to release all remaining stocks purchased at the old price to Agrarian Service Centres. These quantities, together with government stocks, are expected to be sufficient for two paddy cultivation seasons.
However, fertiliser required for the third season would have to be imported at higher prices. The President said recent offers for urea ranged from USD 680 to USD 850 per metric tonne.
To cushion farmers from price increases, the government has decided to sell fertiliser for the third season at a fixed price of Rs. 10,200 per bag despite the estimated market price ranging between Rs. 13,500 and Rs. 14,000. The Treasury will absorb the difference, amounting to roughly Rs. 3,000 per bag, at a total estimated cost of about Rs. 1.7 billion.
The President also announced increases in fertiliser subsidies. Farmers cultivating paddy will receive Rs. 30,000 per hectare, up from Rs. 25,000, while subsidies for subsidiary crops during the Yala season will increase from Rs. 15,000 to Rs. 18,000. Small tea holders will receive a one-time additional payment of Rs. 5,000 per fertiliser bag in addition to the existing Rs. 4,000 subsidy.
He said the expanded fertiliser support programme would cost the government about Rs. 6.5 billion, with an additional Rs. 600 million allocated specifically for fertiliser subsidies.
The President also outlined plans to manage rising energy costs, particularly in the fuel sector. He said the government had considered allowing fuel prices to fully reflect market costs or introducing a subsidy mechanism.
According to current estimates, he said, diesel would exceed Rs. 600 per litre if sold strictly at cost. Instead, the government has decided to maintain the existing tax structure and provide Treasury-funded subsidies.
Under the proposed scheme, diesel will receive a subsidy of up to Rs. 100 per litre, while petrol will receive up to Rs. 20 per litre. Fuel prices will continue to be adjusted based on monthly cost calculations, with the next revision scheduled for May 1.
The subsidy programme is expected to cost around Rs. 20 billion per month and will operate for three months at an estimated total cost of Rs. 60 billion.
In addition, fishermen will receive targeted assistance. Small fishing boats will qualify for an extra Rs. 50 per litre fuel subsidy for up to 625 litres per month, credited directly to bank accounts. This will provide a monthly benefit of Rs. 31,250 per boat.
Multi-day fishing vessels will receive a fuel allowance of Rs. 150,000 per vessel during the three-month subsidy period, the President said.
By Saman Indrajith
News
‘Sri Lanka – China relations: Community with a Shared Future’ launched
The Chinese Embassy in Colombo launched the commemorative publication in connection with the 70 years of Sri Lanka Diplomatic Relations with China titled, “Sri Lanka – China Relations: Community with a Shared Future” on 03 April 2026 in the presence of a large distinguished audience.
Cao Jing, Deputy Director General of the Asian Department of the Ministry of Foreign Affairs, Officials of the Chinese Foreign Ministry, Diplomatic Corps, Xu Yan of the Chinese People’s Association for Friendship with Foreign Countries, officials of Ministry’s line agencies and state-owned enterprises and several other guests having interests in Sri Lanka participated at the event.
The commemorative publication captures the essence of Sri Lanka’s resilience as a nation by tracing its rich history, civilization and culture. It offers insights into salient features of Sri Lanka that has been recognized for ages as “a land like no other”.
The publication was authored by the distinguished career Ambassador Dr. Ananda Kumarasiri.
In delivering the opening remarks Ambassador Majintha Jayesinghe, expressed his appreciation to the author Dr. Ananda Kumarasiri. Recalling the establishment of Diplomatic Relations in 1957, Sri Lankan Ambassador stated that the impressive tapestry of genuine friendship that exists between our two countries since ancient times have grown exponentially.
Ambassador Majintha Jayesinghe expressed the aspiration that this book will present an insightful account of the rich heritage of Sri Lanka’s relations with China. He hoped that the commemorative publications would encourage future generations to look at the shared history and relations with pride and motivate them to further enhance this unique friendship and goodwill to higher vistas of achievements.
In his address, Ambassador, Dr. Ananda Kumarasiri among other important observations, pointed out that there is much scope for Sri Lanka and China to collaborate in a number of fields. In particular, he highlighted that China’s tremendous technological and industrial progress can be harnessed for Sri Lanka to embark into-the development of alternative sources of energy, backward integration of Sri Lanka’s primary resources that would ensure value added exports and also in recycling wastes from various primary resources.
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