News

Urban poverty triples in Lanka

Published

3 years ago

2022/10/23

By Meera Sirinivasan

As Sri Lankans continue braving their worst economic crisis since Independence, urban poverty on the island has tripled in the last year, from 5% to 15 %, according to a recent World Bank report.Sri Lanka is experiencing “its highest poverty rate since 2009 [when the civil war ended], and an erosion of the steady gains in welfare made between 2006 and 2019,” the Bank noted in its recent Sri Lanka Development Update titled ‘Protecting the poor and vulnerable in a time of crisis’, released earlier this month.

While 80% of Sri Lanka’s poor still live in rural areas, the poverty rate in urban areas has tripled since 2021, and half the population in estate areas is currently living below the poverty line, it said, referring to Sri Lanka’s hill country that is home to the island’s historically-neglected Malaiyaha Tamils. About 1.5 lakh people, mostly women, from the million-strong community work in the tea estates, bringing in crucial foreign exchange to the country. They live in dire conditions, in colonial era line rooms, and labour hard to be paid their hard-won LKR 1000 daily wage.

Across districts, Mullaitivu in the Tamil-majority Northern Province continues to be the poor est — 57 % poverty recorded in 2022 — followed by neighbouring Kilinochchi and Nuwara Eliya in the Central Province [hill country], the report said. The update comes while Sri Lanka struggles to cope with a harrowing economic crash, that forced the government to default on its $50 billion foreign debt in April. The following months witnessed enormous shortages of essentials, including food staples, fuel and medicines, as well as an unprecedented people’s uprising that ousted former President Gotabaya Rajapaksa. Backed by a parliamentary vote, senior politician Ranil Wickremesinghe was elected President in July. While essential supplies have since improved, with the government’s fuel rationing policy and repurposed World Bank funds, the fundamental macroeconomic problems remain.

Headline inflation increased to 69.8% in September 2022, while food inflation spiked to 94.9%. Amid frequent local media reports of hunger and starvation, resulting in a rise in school dropouts in some areas, the World Food Programme and the UN’s Food and Agriculture Organization have assessed that nearly a third of Sri Lanka’s 22 million population are food insecure since the crisis hit.

Emphasising that national security is ensured not only with the military, but also through food and economic security, President Wickremesinghe has called for “urgent measures”, his office said on Tuesday, following a review meeting of the government’s ‘National Food Security and Nutrition Assurance Programme’. His government, while facing growing public criticism over inadequate action and repression, is counting on a $2.9 billion package from the International Monetary Fund (IMF), that will be released only after Sri Lanka’s creditors commit to a debt restructuring programme.

As part of its recommendations, the World Bank has urged the government to increase financing for social assistance; come up with a social protection strategy, that includes an operational Welfare Benefits Board and a Social Registry, to enable effective targeting of social security programmes, given the addition of “newly poor” families. It has also called for an increase in cash transfers, to account for the double-digit inflation.

Meanwhile, rights watchdog Amnesty International, in a report on the current economic situation in Sri Lanka released on October 4, made a case for universal social security that sections in Sri Lanka have also sought.

Highlighting limitations to existing programmes in Sri Lanka, Amnesty, in the report titled ‘We are near total breakdown’ pointed to the “lack of sufficient funding, inadequacy of the level of benefits, poor targeting, and the exclusion of a large proportion of people due to administrative inadequacies.” “The targeting of benefits based on levels of poverty has been criticised by experts for arbitrariness, excluding people who should be covered, stigmatising effects, and higher administrative costs,” the report said. (The Hindu)

All News Advertisement

Latest News

58,454 International aircraft movements in Sri Lanka in first 11months of 2025 – Ministry of Ports and Civil Aviation

Published

4 hours ago

2025/12/31

Priyan

According to figures released by the Ministry of Ports and Civil Aviation there have been 58,454 international aircraft movements in the first 11 months of 2025 in Sri Lanka. [An aircraft movement refers to the count of take offs and landings at an airport]

The figures also confirm that tourist arrivals via air stands at 2.1 million.

Latest News

Highest revenue in 93-year history of Inland Revenue Department collected in 2025

Published

7 hours ago

2025/12/31

Priyan

The Inland Revenue Department has succeeded in collecting Rs. 2,203 billion in revenue in 2025, the highest amount recorded in its 93-year history. This represents a surplus of Rs. 33 billion over the revenue target for the year and a 15 per cent increase compared with the revenue collected in the previous year, stated Commissioner-General of Inland Revenue Ms Rukdevi Fernando.

She made these remarks at a discussion held on Tuesday (30) morning at the Department’s auditorium under the patronage of President Anura Kumara Dissanayake.

Marking the first occasion in the 93-year history of the Inland Revenue Department that a President has visited the Department, the President attended a meeting with the staff to review the progress achieved in 2025 and the new plans for 2026.

The President expressed his appreciation to all officers and staff of the Inland Revenue Department for surpassing the revenue expected by the Government and urged everyone to continue working towards a common objective in order to realise the economic transformation required for the country.

Emphasising that no individual is entitled to the privilege of evading taxes, the President stated that the era in which a tax culture prevailed based on personal or political affiliations has come to an end. He further stressed that the law will be enforced without hesitation, irrespective of status, against those who attempt to evade taxes.

The President also pointed out that tax collection is neither repression nor coercion but a legitimate right of the State, adding that necessary changes will be made to laws, regulations, designations and staffing in order to secure this contribution.

He further emphasised that the Government’s objective is to ensure that the benefits of these economic achievements flow to the people of the country. The Government is focusing on improving essential public services to enhance the quality of life, undertaking a new transformation of the transport system and providing adequate allocations for the development of the education and health sectors.

The President also highlighted the need for a targeted programme to properly collect the taxes due to the Government by addressing issues such as improving tax literacy, simplifying the tax system and filling staff shortages.

Ms Rukdevi Fernando stated that the professional competence and dedication of the Department’s officers were the key factors behind this success.

She further noted that a revenue target of Rs. 2,401 billion has been set for 2026 and that the Department expects to achieve this through programmes aimed at enhancing tax compliance and broadening the tax base.

In addition, she said that the Department plans to expand third-party data sharing, strengthen investigations into domestic and overseas assets, take over the RAMIS system, reinforce risk-based auditing, introduce e-invoicing, adopt modern technology for tax administration and enhance tax ethics in 2026.

Minister of Labour and Deputy Minister of Finance and Planning Dr Anil Jayantha Fernando, Deputy Minister of Economic Development Nishantha Jayaweera, Secretary to the President Dr Nandika Sanath Kumanayake, Commissioner-General of Inland Revenue Ms Rukdevi Fernando and senior officials and staff of the Department were present at the occasion.

Business

Sri Lanka Customs exceeds revenue targets to enters 2026 with a surplus of Rs. 300 billion – Director General

Published

16 hours ago

2025/12/31

Priyan

The year 2025 has been recorded as the highest revenue-earning year in the history of Sri Lanka Customs, stated Director General of Sri Lanka Customs, Mr. S.P. Arukgoda, noting that the Department had surpassed its expected revenue target of Rs. 2,115 billion, enabling it to enter 2026 with an additional surplus of approximately Rs. 300 billion.

The Director General made these remarks at a discussion held on Tuesday (30) morning at the Sri Lanka Customs Auditorium, chaired by President Anura Kumara Dissanayake.

The President visited the Sri Lanka Customs Department this to review the performance achieved in 2025 and to scrutinize the new plans proposed for 2026. During the visit, the President engaged in extensive discussions with the Director General, Directors and senior officials of the Department.

Commending the vital role played by Sri Lanka Customs in generating much-needed state revenue and contributing to economic and social stability, the President expressed his appreciation to the entire Customs employees for their commitment and service.

Emphasizing that Sri Lanka Customs is one of the country’s key revenue-generating institutions, the President highlighted the importance of maintaining operations in an efficient, transparent and accountable manner. The President also called upon all officers to work collectively, with renewed plans and strategies, to lead the country towards economic success in 2026.

The President further stressed that the economic collapse in 2022 was largely due to the government’s inability at the time to generate sufficient rupee revenue and secure adequate foreign exchange. He pointed out that the government has successfully restored economic stability by achieving revenue targets, a capability that has also been vital in addressing recent disaster situations.

A comprehensive discussion was also held on the overall performance and progress of Sri Lanka Customs in 2025, as well as the new strategic plans for 2026, with several new ideas and proposals being presented.

Sri Lanka Customs currently operates under four main pillars, revenue collection, trade facilitation, social protection and institutional development. The President inquired into the progress achieved under each of these areas.

It was revealed that the Internal Affairs Unit, established to prevent corruption and promote an ethical institutional culture, is functioning effectively.

The President also sought updates on measures taken to address long-standing allegations related to congestion, delays and corruption in Customs operations, as well as on plans to modernize cargo inspection systems.

The discussion further covered Sri Lanka Customs’ digitalization programme planned for 2026, along with issues related to recruitment, promotions, training and salaries and allowances of the staff.

Highlighting the strategic importance of airports in preventing attempts to create instability within the country, the President underscored the necessity for Sri Lanka Customs to operate with a comprehensive awareness of its duty to uphold the stability of the State, while also being ready to face upcoming challenges.

The discussion was attended by Minister of Labour and Deputy Minister of Finance and Planning, Dr. Anil Jayanta Fernando, Deputy Minister of Economic Development, Nishantha Jayaweera, Secretary to the President, Dr. Nandika Sanath Kumanayake, Deputy Secretary to the Treasury, A.N.Hapugala, Director General of Sri Lanka Customs, S.P.Arukgoda, members of the Board of Directors and senior officials of the Department.