Business

Education equity in Sri Lanka: A pathway out of poverty

Published

4 years ago

2020/12/30

By Wimal Nanayakkara

Although Sri Lanka has provided universal free education since 1939, around one-fifth of poor children drop out of school after the age of 14 years and another-two thirds after the age of 16 years. Comparison of estimates based on the Household Income and Expenditure Survey (HIES)-2012/13 and HIES-2016, conducted by the Department of Census and Statistics (DCS), show only a marginal improvement.

With the closure of schools following the COVID-19 outbreak and the sudden shift to online learning, poor children with no access to e-learning opportunities risk falling even further behind. In this context, some proposals made in budget 2021 to improve the education system and reduce poverty will benefit poor children who have been disproportionately affected by the pandemic. This blog highlights some of the education-related difficulties faced by poor children in Sri Lanka based on HIES data and the recent budget proposals which could help them to overcome these difficulties.

Poor children out of school

A large proportion of poor children are dropping out of school after 14 years, and the percentage of poor children (15-16 years) not attending school has declined only by 4.2, between the two survey periods. Among poor children aged between 17-18 years, this figure has remained almost unchanged at nearly 65%. The corresponding percentages for non-poor children are much lower (Table 1).

Out of the poor children (15-16 years) who leave the education system, more than 66% left mainly due to “poor educational progress/not willing to attend” (36.6%), “financial problems” (22.1%), or to “help in housekeeping /other activities of the household” (8.6%). The corresponding percentages of poor children (17-18 years) were 49.5, 15.8 and 20.0 respectively. One of the reasons for poor education progress could be inadequate nutritional intake. The HIES-2016 shows that the per capita energy consumption of poor households with children (5-18 years) is less than 75% [or 1513 kilo calories per capita a day (kcpcad)] of the recommended energy requirement (2030 kcpcad). The corresponding consumption of non-poor households is 2081 kcpcad, above the recommended requirement.

As there is a possibility for some of the near-poor children to slip into poverty, due to the effects of COVID-19, it is important to consider both poor and near-poor. Figure (1) shows the proportions of early school leavers are very high for poor and near-poor children compared to non-poor. There is also a significant gender gap, especially among the poor and near-poor.

For example, 73.6% of poor boys aged 17-18 years are out of school compared to 53.9% of poor girls in this age group. The corresponding percentages for the 15-16 age group are 24.5 and 14.2 respectively. A similar pattern is observed for near-poor children and even non-poor children, although the proportions are significantly low for non-poor.

Inadequacy of facilities for online learning

Inequality in education can be further widened as not all children have the necessary facilities for online learning during prolonged curfews, lockdowns or when schools are kept closed indefinitely. According to the Computer Literacy Survey –2019 (DCS), only 22.2% of the households in Sri Lanka own a desktop/laptop computer (Urban: 38.3%; Rural: 19.9% and Estate: 3.8%). According to the Telecommunications Regulatory Commission (TRC) of Sri Lanka, there were a total of 1.53 million fixed internet subscribers and 5.73 million mobile subscribers in 2018. However, the use of smartphones would be limited, especially in remote rural areas, where broadband internet facilities are weak and there is no information on the extent of smartphone users among the poor.

‘E-Thaksalawa’ the national e-learning portal of the Ministry of Education (MoE), is facilitating e-learning for students (Grade 1 to Advanced Level). But some children, cannot access them at present due to the lack of facilities or means. Broadband internet facilities, a computer/laptop or a smartphone and sufficient data are essential to download available study material.

As highlighted in a previous IPS blog, the best option therefore would be to use television (TV) as 86% (HIES-2016) of households in the country own TVs (Urban: 88.9%; Rural: 86.1% and Estate: 81.2%). The ‘Guru Gedara’ distance learning programme of the MoE broadcast by Channel Eye/Nethra TV, ART TV and Ada Derana, for students from Grade 3 to GCE (A/L) are both in Sinhala and Tamil. The SLBC is also broadcasting these lessons for the benefit of children who do not have access even to a TV.

This is an excellent and innovative way for poor children to continue their studies in a stream of their choice, who may be leaving education prematurely due to lack of facilities, especially teachers, to teach science/ technology subjects, mathematics, languages, etc., in rural/estate schools and non-national schools.

Budget proposals

Budget 2021 has some proposals which, if implemented, could solve most of the issues highlighted above. They will benefit the poor and vulnerable children, who are facing difficulties in continuing their education, explained above. The proposals are also aimed at developing the entire education system with special emphasis on skills development, to meet the ever-increasing demand for high skills and also to provide necessary facilities.

A summary of some of the most important proposals are:

• ‘Gamata Sannivedanaya’ to provide 4G/Fiber broadband facilities to cover all Grama Niladhari divisions; internet facilities to all schools.

• ‘E-Thaksalawa’ learning portal to be strengthened further to minimise the difficulties faced by students in rural / estate and non-national schools.

• ‘Guru Gedara’ programme to be made available to all students, by providing TV sets to schools in difficult areas.

• Improving and expanding the opportunities for vocational/technical education, which will be extremely useful in developing the necessary skills in a rapidly changing environment.

The early implementation of these proposals could pave the way to breaking the vicious poverty trap through equitable education and ensuring that no child is left behind.

Link to original ‘Talking Economics’ blog: https://www.ips.lk/talkingeconomics/2020/12/28/education-equity-in-sri-lanka-a-pathway-out-of-poverty/

Wimal Nanayakkara is a Senior Visiting Fellow at the Institute of Policy Studies of Sri Lanka (IPS) with research interests in poverty, and is a specialist in sampling. He was previously engaged at the Department of Census and Statistics, where he functioned as the Director General for 12 years. He received his BSc in Mathematics and Physics from the University of Peradeniya and holds a Postgraduate Diploma in Applied Statistics from the University of Reading, UK. (Talk to Wimal – wimal@ips.lk)

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Business

‘NSB achieves outstanding profit in 2024, showcasing resilience and strategic growth amid economic changes’

Published

19 hours ago

2025/03/12

Sahan Weerasooriya

Dr. Harsha Cabral Chairman NSB (L) / General Manager/CEO, Ms.Shashi Kandambi (R)

The National Savings Bank (NSB) has once again solidified its position as a pillar of financial stability showcasing a year of remarkable resilience and strategic agility, unveiling its audited financial results for the year ended December 31, 2024. Against the backdrop of economic uncertainties, NSB reported a remarkable 126% increase in Profit After Tax (PAT), soaring to Rs. 16.29 billion from Rs. 7.22 billion in 2023. This phenomenal growth underscores the Bank’s unwavering commitment to financial prudence, operational efficiency, and shareholder value enhancement.

Reflecting on the Bank’s outstanding performance in 2024, Chairman of NSB, Dr Harsha Cabral PC, stated, “NSB’s financial success in 2024 underscores the strength of our strategic vision, disciplined execution, and unwavering dedication to our customers and stakeholders. Despite a challenging macroeconomic environment, we have demonstrated resilience, achieving record profitability while maintaining a strong balance sheet and a stable risk profile. Our commitment to sustainable growth, prudent governance, and financial inclusivity continues to drive our long-term success. As we look ahead, we will further strengthen our role as a key pillar of Sri Lanka’s financial sector, ensuring that we create lasting value for the nation and its people.”

Core Drivers of Profitability: Strength in Core Banking Operations A pivotal driver of this exceptional performance was the remarkable 146% surge in net interest income, soaring to Rs. 72.78 billion from Rs. 29.57 billion in 2023. This growth was achieved despite a 10% year-on-year decline in interest income, primarily stemming from an accommodative monetary policy stance that resulted in subdued yields on loans and government securities. However, the substantial 34% reduction in interest expenses to Rs. 130.97 billion outpaced the decline in income, propelling a significant expansion in net interest income.

“By recalibrating our deposit strategies and capitalizing on favourable rate environments, we have significantly strengthened our interest margins,” remarked the General Manager/CEO, Ms. Shashi Kandambi. “The Bank’s ability to optimize its asset-liability mix and enhance operational efficiencies has been instrumental in achieving this milestone, reaffirming its commitment to sustainable growth and value creation”, Ms Kandambi further asserted. (NSB)

Business

Challenge 2030: Achieving global road safety goals

Published

19 hours ago

2025/03/12

Sahan Weerasooriya

4TH GLOBAL MINISTERIAL CONFERENCE ON ROAD SAFETY

The 4th Global Ministerial Conference on Road Safety was held from 19th February to 20th February, 2025, in the Kingdom of Morocco, in the beautiful city of Marrakesh.

Morocco is a remarkable country with kind and friendly people, making it one of the most attractive destinations in the world. Marrakesh, in particular, is renowned for its rich cultural heritage and stunning landscapes.

The conference was organized by the Kingdom of Morocco with the support of the World Health Organization (WHO). It provided an opportunity to host satellite events related to improving global road safety and advancing initiatives to achieve global targets.

The event was well attended, with approximately 1,500 delegates, including ministers from various countries, senior officials from United Nations agencies, and representatives from civil society, academia, and the private sector.

Key Discussions at the Conference

The conference served as a platform to accelerate actions aimed at improving road safety through the implementation of the Global Plan for the Decade of Action for Road Safety 2021–2030. The following topics were discussed:

Child Health Initiative Manifesto 2030

Protecting Young Lives – A Global Status Report on Child & Adolescent Road Safety

Perspectives on Meeting Challenge 2030 – What Has Worked, What Hasn’t, and What’s Next?

Supporting the Global Road Safety Agenda and Engaging with the Private Sector

Ensuring the Highest Levels of Safety Across Organizational Value Chains

FIA Road Safety Roadmap

At the conference, it was highly commended that the FIA Foundation has made significant progress in addressing global road traffic injuries in multiple ways. However, it was acknowledged that more work is needed to achieve the set road safety targets. Continuous efforts at the global, national, and city levels have been made to reduce deaths and injuries by implementing effective strategies such as safer vehicles, improved road design, speed limit management, standardized motorcycle helmets, and the adoption of new technologies.

Despite FIA’s efforts to reduce global road fatalities, the rise in population and motorization has led to an increase in road accidents. More than a million people lose their lives each year, while 10’s of millions suffer life-changing injuries.

The conference highlighted specific causes of the increase in accidents, including poorly designed highways, freeways, and road networks, which lead to unnecessary deaths and injuries. Other contributing factors include motorists failing to follow road signs and speed limits and the poor quality of safety helmets.

However, in Sri Lanka according to Statistics of Police Department, 30,000 accidents occur during each year. 2,500 accidents per month, 85 accidents daily and 8 fatal accidents per day.

Ensuring safer vehicles for all drivers and passengers is a fundamental right, regardless of where they live. The conference noted that some regions still sell cars that fail to meet United Nations safety standards. Notably, the Government of India launched the ‘SAFER CARS FOR INDIA’ campaign in 2023 to address this issue.

It is crucial for Sri Lanka to address the unsafe modification of vehicles and the installation of hazardous motor accessories, as recent accidents have shown that many passenger deaths and injuries occurred due to such modifications.

Furthermore, making rear seatbelt use mandatory for all passengers in cars and buses is essential to improving road safety by bringing Amendment to Motor Traffic Act is very important by Ministry of Transport

In Sri Lanka, Automobile Association of Ceylon represents following Committees and Agencies:

National Council for Road Safety

Safer & Cleaner Roads headed by Presidential Secretariat

Standing Committee on Traffic, Highways and Transportation of Colombo Municipal Council

Appointment to High – Level Committee to provide Directions to Address Road Safety Challenges in Sri Lanka.

Automobile Sector Industry Skills Council

Public Utility Commission of Sri Lanka

Moving Forward

If Sri Lanka adopts Globally recommended Road Safety measures, Sri Lanka should be able to achieve the Global Road Safety Goals by 2030.

The Automobile Association of Ceylon will facilitate and assist the Government of Sri Lanka in achieving these targets and road safety goals by 2030.

By: Prasanna De Zoysa

Sectional Chairman

(Road Safety, Buildings & Environmental)

Automobile Association of Ceylon

Business

Lolc Life Assurance celebrates Women’s Month with added protection and rewards

Published

19 hours ago

2025/03/12

Sahan Weerasooriya

In celebration of Women’s Month, LOLC Life Assurance is proud to introduce a special initiative that offers greater protection and meaningful rewards for women. Throughout March 2025, females who purchase a critical illness policy with a minimum sum assured of Rs. 1 million will receive an additional 50% cover of up to a maximum of Rs. 1 million at no extra cost, exclusively for female-specific critical illnesses, including, breast cancer, womb cancer, and cervical cancer. This complimentary cover will remain valid throughout the policy period. Furthermore, if the policyholder is male and has included his spouse under the policy, she will also be eligible for this special benefit without any changes to the coverage.

As part of this initiative, LOLC Life Assurance is also rewarding mothers. All policyholders who give birth during March 2025 will receive a cash reward of Rs. 25,000 provided their policies were obtained on or before 31st December, 2024 and remain active at the time of delivery.