One third of Sri Lankans at risk of poverty
- CNL Reporter
- April 26, 2025
- Political
- Sri Lankan
- 0 Comments
Poverty levels labelled as “alarmingly high at 24.5 percent” by the World Bank in a report released on April 23 raises concerns about economic wellbeing in Sri Lanka, despite the economy growing steadily after the economic crisis in 2022 “about a third—remains in poverty or is at risk of falling back into poverty,” said David Sislen, World Bank Division Director for Maldives, Nepal, and Sri Lanka.
In the report released by the World Bank a moderate growth of 3.1 percent is forecasted for the year 2026 and “implementation of reforms that enhance trade, investment, competition and female labor force participation, among others, is essential to ensure that all Sri Lankans benefit from the recovery”
A recent report on labor force on the quarter 4 of 2024 released by the Department of Census and Statistics (DCS) shows that 71 percent or 6,549,504 of females aged 15 and above are economically inactive meaning they are not participating in the labor market. This includes people who are not actively seeking work or are not available to start working within a short period.
The report by DCS stated “The survey results further reveal that the unemployment among females is higher than that of males, in all age groups. Youth and female unemployment contribute more to the overall unemployment of the country”.
One of the main reasons attributed to the high poverty levels by the World Bank is “The labor market continues to struggle, leading to increased emigration as people look for opportunities abroad. Household incomes, employment and overall welfare remain well below pre-crisis levels.”
The DCS in the labor force survey mentioned that unemployment rates are highest in the 15 to 24 age category with 25.7 percent. The minimum expenditure per person per month to fulfill the basic needs as per the DCS in February 2025 is Rs. 16,318 which has more than doubled with a 134 percent increase since 2019 which was Rs. 6,966.
According to the Sri Lanka Export development Board “United States is the 01st export destination” for Sri Lanka. Total export value from Sri Lanka to the United States was USD 2,909.97Mn in 2024.” The imposition of 44 percent reciprocal tariffs have led to a significant impact on the exports of Sri Lanka with many individuals bearing the brunt of the tariffs.
In the annual report (2024) released by World Food Program Sri Lanka “the percentage of children under 5 who are suffering from wasting (low weight-for-age) and stunting (low height-for-age) over the last five years increased, revealing nutritional shortcomings. WFP supported over 1.5 million people through its four strategic outcomes in 2024, of which 61 percent were female. The nutritional situation in Sri Lanka reveals persistent and concerning malnutrition trends, highlighting systemic gaps in access to adequate nutrition.”
A seminar on exchanges between China and Sri Lanka in the fields of economic development and poverty alleviation was held in Beijing, China recently. The seminar – ‘Experience Exchange in the Field of Economic Development and Poverty Alleviation between China and Sri Lanka’ was held from March 23 – April 05 and was attended by 28 officials across 13 different ministries or institutions of Sri Lanka.
By Huzefa Aliasger
