News

Urban poverty triples in Lanka

Published

4 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)

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Theft of USD 2.5 mn from Treasury: CoPF accused of complicity in NPP cover-up

Published

12 hours ago

2026/06/15

Thilina Walpola

Harsha rejects what he called frivolous accusations

Chairman of Committee on Public Finance (CoPF) Dr. Harsha de Silva dismissed Free Lawyers’ claim that his Committee had helped delay a proper investigation into the theft of USD 2.5 mn (nearly Rs 1 bn) from the Treasury.

The Colombo District SJB MP said that he wouldn’t comment on frivolous accusations against his Committee. “We conduct ourselves in keeping with the highest standards of professionalism and responsibility.”

Dr. de Silva said so when The Island raised the Free Lawyers’ allegation that the Treasury and the Central Bank were using the CoPF as a tool to prolong investigations into the unprecedented theft of funds. Free Lawyers targeted the CoPF in a statement issued by Maithri Gunaratne, PC, and civil society activist Rajith Keerthi Tennakoon.

The other members of the CoPF are Harshana Rajakaruna (SJB), Ravi Karunanayake (NDF), Nimal Palihena (NPP), Wijesiri Basnayake (NPP), Thilina Samarakoon (NPP), Lakmali Hemachandra (NPP), Chathuranga Abeysinghe (NPP), Kaushalya Ariyaratne (NPP), Akram Ilyas (NPP), Shanakiyan Rajaputhiran Rasamanikkyam (ITAK), Champika Hettiarachchi (NPP), Sunil Rajapaksha (NPP),

M. K. M. Aslam (NPP), Ajith Agalakada (NPP), Rauff Hakeem (SLMC), Chitral Fernando (SJB) and Nishantha Jayaweera (NPP).

Tennakoon said the theft of funds happened over eight months ago and the Parliament owed the country a clear explanation regarding the disappearance of USD 2.5 mn. The CoPF, instead of expediting the process, has conveniently granted time for those responsible for the loss to cover up their tracks. “Free Lawyers pursue the issue at hand vigorously as we were the first to reveal the loss of USD 2.5 mn. Those who knew it remained silent until our disclosure,” he said, alleging that Speaker Dr. Jagath Wickremaratne was yet to respond to their letter regarding the USD 2.5 theft.

Responding to queries, Tennakoon said that political parties represented in the CoPF should be held responsible for the developing situation. “The Committee on Public Accounts Committee (CoPA) headed by SJB MP Kabir Hashim too, should explain its failure to deal with the USD 2.5 mn theft. Both CoPF and CoPA led by two SJB MPs should act now. Dr. de Silva and Hashim are answerable to the public, particularly because they represent the main Opposition.”

The CoPA consists of Kabir Hashim, Maj. Gen. Aruna Jayasekera (NPP), Sugath Thilakaratne (NPP), Anton Jayakody (NPP), Chandana Sooriyaarachchi (NPP), Ruwanthilaka Jayakody (NPP), Nalin Hewage (NPP), Oshani Umanga (NPP), Manjula Suraweera (NPP), Sagarika Athauda (NPP), Janaka Senarathna (NPP), K.Illankumaran (NPP), Dinidu Saman Henanayake (NPP), Susantha Kumara Navaratna (NPP), Lal Premanath (NPP), Aravinda Senarath (NPP), Thushari Jayasinghe (NPP), T. K. Jayasundera, Ajantha Gammeddage (NPP), Sundaralingam Pradeep (NPP), Kavinda Jayawardena (SJB), J.C. Alawathuwala (SJB),Hector Appuhamy (SJB), Kaveenthiran Kodeeswaran (ITAK), Chamara Sampath Dassanayake (NDF), Rohitha Abeygunawardena (NDF), M.L.A.M. Hisbullah (SLMC), M.A.M. Thahir (ACMC), Chanaka Madugoda (SLPP) and Sunil Ratnasiri (NPP).

Tennakoon said that both CoPF and CoPA were dominated by the NPP though the SJBers headed them. However, as heads of the two parliamentary committees, Dr. de Silva and Hashim, should be held responsible for lapses on the part of the committees or any deliberate omissions, Tennakoon said, questioning the rationale behind giving the Treasury and the CBSL six weeks to submit their findings to the CoPF.

Free Lawyers alleged that USD 2.5 had been released in spite of JP Morgan Chase and the Federal Reserve in the United States warning Sri Lanka about the suspicious nature of those foreign transactions via SWIFT messages. Tennakoon emphasized investigators should closely inquire into the decision taken to release funds regardless of such high-profile warnings.

Tennakoon said that the integrity of two key parliamentary committees is at stake. The civil society activist said that the country was in a highly critical phase of debt restructuring following a severe economic crisis. Tennakoon pointed out in terms of a condition of the International Monetary Fund (IMF) loan programme, the government’s debt management functions, previously carried out by the CBSL, were recently transferred to a new institution established under the General Treasury—the Public Debt Management Office (PDMO).

by Shamindra Ferdinando

News

Viral diseases on the rise

Published

12 hours ago

2026/06/15

Thilina Walpola

The number of patients hospitalised due to viral illnesses, including dengue fever, had increased significantly, health officials said yesterday, adding that there had been a rise in daily dengue-related admissions.

Acting Director of the National Dengue Control Unit Dr. Kapila Kannangara said Sri Lanka had recorded 41,144 dengue cases as of Saturday (13).

He said more than half of the reported cases—around 51 percent—were from the Western Province.

According to Dr. Kannangara, the number of dengue patients admitted to hospital daily had reached 750, but it had declined to around 630. However, he cautioned that infection levels remained “very high,” despite the slight drop in hospital admissions.

The dengue death toll has risen to 24, prompting several hospitals to issue red alerts amid continued pressure on wards treating incoming patients.

Health officials warned that the situation could worsen if case numbers continued to rise. Dr. Kannangara noted that the growing burden on healthcare facilities could eventually exceed system capacity.

The public has been urged to take preventive measures to eliminate mosquito breeding sites and to seek prompt medical attention if dengue symptoms develop.

by Chaminda Silva

News

Ranil warns of another economic crisis, calls for Opposition unity

Published

12 hours ago

2026/06/15

Thilina Walpola

Former President and UNP leader Ranil Wickremesinghe has warned that Sri Lanka is heading towards a severe economic crisis, alleging that the current administration is steering the country towards “total collapse.”

Addressing a meeting of the UNP Working Committee at the party headquarters on Flower Road on Thursday, Wickremesinghe claimed that the government was facing mounting difficulties on multiple fronts, with the economy continuing to deteriorate.

He also accused the administration of pursuing policies that, he said, marginalised war heroes and Buddhist monks.

Wickremesinghe expressed concern over what he described as an erosion of fundamental and legal rights, citing the arrest and alleged ill-treatment of former State Intelligence Service Chief Suresh Sallay as an example. He said the rising cost of living had emerged as one of the main concerns of the public.

Commenting on the political situation, the former President said the Opposition had not been able to forge unity among the anti-government forces and called for greater coordination among Opposition parties and groups. He advocated a phased mobilisation strategy, beginning at village and electorate level, instead of attempting to address all issues simultaneously.

Wickremesinghe also announced a series of political campaigns and rallies aimed at strengthening the Opposition movement. The programme is scheduled to commence in Kandy this weekend, with subsequent events planned in Kurunegala and Kalutara.

He said the UNP was engaged in discussions with several political parties and organisations, including those led by Minister Jeevan Thondaman, with a view to forming a broader political alliance.Wickremesinghe urged party members to expedite discussions and arrive at a collective decision on the way forward to address the country’s challenges.