Business
Education equity in Sri Lanka: A pathway out of poverty
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)
Business
Sri Lanka sees silver lining in ties with Russia and Britain amid Middle East shocks
As geopolitical tensions in the Middle East continue to unsettle global energy and trade flows, Sri Lanka appears to be finding a degree of resilience by deepening economic engagement with partners such as Russia and the United Kingdom.
Recent diplomatic and trade developments suggest Colombo is positioning itself to benefit from both energy cooperation with Moscow and expanded export opportunities in the British market, potentially softening the impact of external shocks on its fragile economy.
During talks in Colombo last week, Foreign Minister Vijitha Herath met visiting Russian Deputy Foreign Minister Andrey Rudenko, with both sides reaffirming their commitment to strengthening bilateral ties.
Rudenko has described the island as a long-standing friend of Russia and pledged support in several key areas, including oil supplies, investment promotion, and tourism cooperation.
The assurance of energy support comes at a time when global oil markets remain volatile due to geopolitical tensions and shifting sanctions regimes. Russia indicated it was prepared to assist Sri Lanka with oil supplies if needed, though Rudenko earlier clarified at a policy discussion that Moscow prefers long-term contractual supply arrangements rather than short-term spot deals arising from temporary market disruptions.
For Sri Lanka, which has faced severe fuel shortages in the recent past, such arrangements could offer greater stability in energy procurement during periods of global uncertainty.
Russia also signalled interest in encouraging its investors to explore opportunities in Sri Lanka and increasing tourist arrivals, while expressing readiness to provide compensation for Sri Lankan war veterans who lost their lives while serving in Russia’s war against Ukraine.
Colombo, in turn, emphasized the historic nature of the relationship. Herath noted that the two countries share nearly seven decades of diplomatic ties, adding that the current moment presents an opportunity to expand cooperation through longer-term trade and economic agreements.
While Russia offers potential relief on the energy front, Sri Lanka is simultaneously gaining a competitive edge in exports through new trade arrangements with Britain.
Under the revised Developing Countries Trading Scheme (DCTS) introduced by the United Kingdom in January 2026, Sri Lanka’s apparel sector – the country’s largest export industry – stands to benefit significantly.
The scheme eases rules of origin requirements, allowing exporters greater flexibility in sourcing raw materials while still maintaining preferential access to the UK market. For Sri Lankan manufacturers, particularly small and medium-sized enterprises, this change addresses a longstanding constraint that had limited their ability to compete with larger regional producers.
Industry participants say the reform could improve pricing competitiveness, shorten production lead times, and allow exporters to respond more effectively to the fast-moving demands of global apparel buyers.
Apparel exporter Joe Jayawardena noted that while the scheme provides duty concessions for developing economies, its most valuable feature is the commercial flexibility it offers producers. With more freedom in sourcing fabrics and inputs, Sri Lankan exporters can negotiate more effectively on price, delivery schedules and product specifications – factors that often determine whether orders are secured in the global fashion supply chain.
For Sri Lanka’s economy, the convergence of these developments could provide a modest but important buffer against global turbulence.
Energy cooperation with Russia may help stabilise supply during volatile periods, while enhanced access to the British market could strengthen export momentum in one of Sri Lanka’s most important trading sectors.
An independent economic analyst told this reporter that the offers coming from both countries would be widely welcomed in Sri Lanka, as they are driven primarily by mutual trade interests rather than by deeper strategic or political considerations.
By Sanath Nanayakkare
Business
John Keells Foundation marks its 21st anniversary with a redesigned website and new Volunteer App
John Keells Foundation (JKF), the Corporate Social Responsibility (CSR) entity of the John Keells Group, announced the unveiling of its redesigned website and plans to launch a new Volunteer App as it marked its 21st anniversary of incorporation on 28th March 2026.
The redesigned website was symbolically launched by Krishan Balendra, Chairperson of the John Keells Group, in the presence of the JKF’s Management Committee comprising the Group Head of CSR, JKF Project Champions, Sector CSR Coordinators, the JKF team and associated Centre functions personnel.
Speaking at the website launch, Krishan Balendra said, “I am happy to note features in the redesigned website which amplify the voices of beneficiaries and partners and ease overall navigation, strengthening how JKF connects with our multiple stakeholders. Meanwhile, the new Volunteer App has potential to reach our 15,000+ employees through a dynamic and personalised interface and critically enhance Group-wide data collation and reporting on volunteerism. Both these innovations are meaningful ways of marking JKF’s 21st year, demonstrating how JKF continues to evolve strategically.”
Established in 2005 as a pioneer CSR entity in Sri Lanka, JKF has over the past 21 years, evolved as a dominant force in corporate responsibility, demonstrating how corporates can play a pivotal role in social development through a multi-stakeholder approach. JKF’s dedicated website has since its launch in 2016 served as a vital platform to communicate its wide‑ranging initiatives implemented under the John Keells CSR vision of `Empowering the Nation for Tomorrow’.
Business
IBH Real Estate celebrates six years of growth
IBH Real Estate marks six years in business this year, having grown from a modest venture founded in 2020 by Romesh Abeysekera into a trusted name in Sri Lanka’s property sector.
The company has built a reputation for serving high-net-worth individuals and investors, particularly in the luxury segment, while offering advisory and legal support beyond standard brokerage.
Abeysekera said the firm’s progress has been driven by trust and long-term client relationships. IBH has also attracted growing international interest in Sri Lanka’s real estate market, bridging local expertise with global investor expectations. The company aims to further strengthen its industry position moving forward.
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