Business

Education equity in Sri Lanka: A pathway out of poverty

Published

5 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

CDS accounts on the increase, crosses one million accounts

Published

3 hours ago

2026/03/7

Thilina Walpola

Central Depository Systems (Pvt) Ltd (CDS), a subsidiary of the Colombo Stock Exchange (CSE), has reached a milestone as total registered accounts surpassed the 1 million mark. This achievement coincides with the approach of the organization’s 35th anniversary in September 2026, marking three and a half decades of providing depository infrastructure for the Sri Lankan capital market.

Since its inception in 1991, the CDS has held the distinction of being the first depository in the South Asian region. In its core capacity as a depository, the institution is responsible for holding a wide array of securities including shares, debentures, corporate bonds, and units belonging to investors in electronic form.

The crossing of the one million account threshold also reflects the aggressive broad basing of the retail investor market over the past five years. This expansion is largely attributed to the comprehensive digitalization of the CSE, which has created accessibility for individuals across the country. Digital tools such as the CSE Mobile App and the “CDS e-Connect” portal have revolutionized how investors interact with the stock market, providing them with real time access to their holdings and a seamless interface for account management. The “CDS e-Connect”, originally launched in 2016 and revamped in 2021, has become a one stop shop for stakeholders, by offering services such as client profile management, real time balance and transaction viewing, eNomination facility, monthly statements and newly introduced dividend payment history viewing option. From 2016, by offering eStatements and SMS alert facilities CDS ensures transparency and security for the CDS accountholders. By decentralizing account openings and introducing online facilities in 2020, the CDS successfully brought the stock market to the fingertips of the general public, moving away from the traditional, paperwork heavy processes that once characterized the industry.

A critical pillar of this 35-year history was the 2011 launch of the full dematerialization drive. This initiative was designed to significantly reduce the movement of physical certificates, which were prone to loss, damage, and forgery. Today, the success of this drive is evident as the CDS holds 97 percent of listed equity and 100 percent of corporate debt in scripless form. This near total transition to electronic records has provided a secure and accessible service environment. The Central Control Unit plays a vital role, ensuring that all functions performed by the depository and its participants align with strict rules and regulatory guidelines. By identifying operational, financial, and market risks early, the CDS maintains the integrity of the ecosystem and fosters trust among both domestic and international investors.

Beyond its primary depository functions, the CDS has significantly expanded its influence through the Corporate Solutions Unit (CSU), established in 2017. The CSU was created to standardize and elevate the benchmarks for corporate action services in Sri Lanka and has since grown through the strategic acquisition of PW Corporate Registrar arm. This diversification allows the CDS to expand registrar services and manage corporate actions for both listed and unlisted companies, providing a holistic suite of services that includes the distribution of dividends, rights issues, and e-applications for Initial Public Offerings (IPOs). The digitization of issuer services has been a hallmark of the CSU’s work, introducing innovations such as eDividend payments, eWarrants, and eNotices. These advancements have streamlined the process for issuers while ensuring that shareholders receive their entitlements promptly and securely.

The strategic outlook for the CDS is now centred on the newly formed Research and Development Unit, which is essential to the organization’s vision for the future. This unit functions as a Project Management Office and is responsible for developing innovative services. By cultivating strategic alliances and international collaborations, the R&D unit ensures that the CDS remains a future forward institution capable of adapting to the evolving needs of the global financial sector.

As the CDS looks toward its 35th year of service, it remains focused on digital transformation, strategic partnerships that power progress, new service offerings and enhanced international relations. The integration of new technologies continues to ensure robust infrastructure for the next generation of market participants.

Head of CDS Nadeera Athukorale commenting on the vision of the CDS, remarked “By balancing its core depository duties with non-core registrar and consultancy services, the CDS has positioned itself for long term sustainability and industry leadership.”

The achievement of one million accounts serves as a testament to the resilience and adaptability of the Sri Lankan capital market infrastructure, demonstrating CDS’ ability to facilitate a growing digitized market while continuing to serve as the backbone of the nation’s investment landscape. (CSE)

Business

TONIK set to become next Sri Lankan hospitality brand reaching the global stage

Published

3 hours ago

2026/03/7

Thilina Walpola

Garfield Bungalow by TONIK

TONIK, a new hospitality venture under Sri Lanka’s Acorn Group, has unveiled its vision to place culture, storytelling and design at the heart of island exploration, positioning itself as the next Sri Lankan hospitality brand to achieve global recognition.

Built on the Acorn Group’s decades of expertise across aviation, travel, logistics and leisure in multiple Asian markets, TONIK aims to elevate Sri Lanka’s tourism by translating the “soul” of destinations into curated experiences. The brand’s philosophy, “Every Stay Is a Story”, treats villas and boutique hotels as “living narratives” shaped by architecture, memory, craft and community.

The venture addresses a key market gap: while Sri Lanka features exceptional independent villas, many struggle with visibility and global reach. TONIK seeks to resolve this by amplifying each property’s unique value proposition – transforming distinctiveness into revenue -generating potential for owners.

“TONIK’s philosophy aligns with the evolution of our industry- where authenticity and meaningful experiences are no longer optional but essential,” said Harith Perera, Partner at Acorn Group. “Sri Lanka’s narrative deserves platforms that elevate its voice globally.”

For property owners, TONIK offers access to Acorn’s intelligence networks across the Maldives, Middle East, Europe and Asia, including insight into High-Net-Worth travel patterns.

CEO Sundararajah Kokularajah said: “By nurturing properties as living narratives, we aim to shape a new chapter for tourism – authentic, future-ready and deeply Sri Lankan.”

By Sanath Nanayakkare

Business

SDB bank relocates Warakapola branch to enhance customer experience

Published

3 hours ago

2026/03/7

Thilina Walpola

SDB bank relocated its Warakapola Branch to a new location with a modern, fresh look and ample parking, further strengthening its commitment to delivering an enhanced, customer-centric banking experience. The newly refurbished branch, located at No. 221/E, Colombo Road, Warakapola, will officially open its doors to customers.

The relocation reflects SDB bank’s ongoing efforts to adapt its branch network to today’s banking requirements, ensuring clients enjoy a refreshed, welcoming, and efficient service. The upgraded branch features contemporary design and improved facilities, providing greater convenience and a seamless banking experience for individuals, entrepreneurs, and businesses in the Warakapola area.

As part of its continuous transformation journey, SDB bank has prioritised innovation and service excellence in reimagining the Warakapola Branch. The new premises have been thoughtfully designed to meet evolving customer needs while fostering stronger engagement with the local community and business sector.

Kapila Ariyaratne, Executive Director / Chief Executive Officer of SDB bank, stated, “The relocation of our Warakapola Branch reflects SDB bank’s dedication to providing our customers a modern and enhanced banking experience with convenience and personalised service. This modern space is designed to meet evolving needs while reinforcing our strong ties with the local community. We remain committed to delivering innovative and customer-focused financial solutions that support regional and national growth.”

The enhanced branch environment is expected to serve both existing customers and new clients in the region, reinforcing SDB bank’s growing island wide presence. Through this relocation, the Bank continues to demonstrate its commitment to sustainable growth, service excellence, and meaningful community engagement.

SDB bank invites its valued customers and the Warakapola community to visit the new branch and experience the enhanced facilities firsthand.

A future-ready bank, dedicated to offering customer-centric and comprehensive support tailored to each individual’s needs, SDB bank is a licensed specialized bank regulated by the Central Bank of Sri Lanka, with a listing on the Main Board of the Colombo Stock Exchange and a Fitch Rating of BB +(lka).

Through the network of 94 branches island-wide, the bank provides a comprehensive range of financial services to its Retail, SME, Co-operative, and Business Banking clients across the country. Environmental, Social, and Governance (ESG) principles are deeply ingrained in SDB bank’s ethos, with a steadfast focus on uplifting local communities and businesses through sustainable practices. The bank is particularly committed to promoting women’s empowerment, sustainable development of SMEs, and digital inclusion, aiming to propel Sri Lanka to new heights.

Ceremonial opening of SDB bank Warakapola Branch

From left to right,

Binesh Aravinda – Head of Branch Banking – SDB bank,.A.D.Walisinghe – Chairman Kegalle Sanasa District Union, Kapila Ariyaratne – Executive Director/ Cheif Executive Officer – SDB bank, Chitral De Silva – Cheif Business Officer – SDB bank