Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.

Thank You

Join the forum, it's quick and easy

Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.

Thank You
Would you like to react to this message? Create an account in a few clicks or log in to continue.

Encyclopedia of Latest news, reviews, discussions and analysis of stock market and investment opportunities in Sri Lanka

Click Link to get instant AI answers to all business queries.
Click Link to find latest Economic Outlook of Sri Lanka
Click Link to view latest Research and Analysis of the key Sectors and Industries of Sri Lanka
Worried about Paying Taxes? Click Link to find answers to all your Tax related matters
Do you have a legal issues? Find instant answers to all Sri Lanka Legal queries. Click Link
Latest images

Latest topics

by SL-INVESTOR Today at 12:48 am

by ErangaDS Wed Jun 19, 2024 9:21 pm

» How will proposed Tax Reforms affect Sri Lankans in 2025
by Quibit Wed Jun 19, 2024 9:27 am

» Alibaba & 23 Thieves
by ChooBoy Wed Jun 19, 2024 12:23 am

» Falsified accounts and financial misrepresentation at Arpico Insurance PLC (AINS)
by ChooBoy Tue Jun 18, 2024 11:31 pm

» Impact of IMF reforms to Sri Lanka Economy
by D.G.Dayaratne Mon Jun 17, 2024 6:36 pm

» Richard Pieris Finance Ltd continue to endanger the Depositors with negative performance
by ddindika Mon Jun 17, 2024 3:17 pm

» Richard Pieris Group: Mismanaged?
by Biggy Sun Jun 16, 2024 10:02 am

» Richard Pieris Exports reports 97% decline in Net Profits
by Biggy Sat Jun 15, 2024 11:26 am

» Do your own Stock Market Research using AI Tools
by Quibit Fri Jun 14, 2024 10:50 am

» What will happen tomorrow?
by cheetah Thu Jun 13, 2024 12:07 pm

» Focus on Government controlled entities
by ErangaDS Mon Jun 10, 2024 4:15 pm

» Colombo Stock Market: Over Valued against USD!
by God Father Mon Jun 03, 2024 3:17 pm

» Financial Woes at Richard Pieris Group
by DeepFreakingValue Sat Jun 01, 2024 11:29 pm

» Report a Tax Evasion and Get Rewarded upto 15%
by God Father Fri May 31, 2024 11:51 am

» LankaGPT Platform Launched in Sri Lanka
by God Father Wed May 29, 2024 11:46 pm

» Sri Lanka’s Popularity Is Surging With Travelers. Here’s Where To Go
by ResearchMan Wed May 29, 2024 1:10 pm

» CDB Non voting
by buddikasmart Wed May 29, 2024 8:03 am

» Will share market be taxed after new Gazette
by D.G.Dayaratne Mon May 27, 2024 2:14 pm

by Ekanayake90 Mon May 27, 2024 7:29 am

» Seylan Bank did not pay final coupon of expired debentures
by Gaudente Wed May 22, 2024 2:32 pm

» Sri Lanka: Stock Market Fraudsters with Criminal Prosecutions
by agentnrox Wed May 22, 2024 1:50 pm

» Richard Pieris Exports PLC (REXP.N0000) future looks bleak!
by God Father Mon May 20, 2024 10:08 pm


Submit Post
ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post


Send your suggestions and comments

* - required fields






You are not connected. Please login or register

Sri Lanka: Policy Challenge Addressing Poverty Vulnerability as the Economy Recovers

2 posters

Go down  Message [Page 1 of 1]

God Father

Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

The pandemic and the subsequent socioeconomic crisis reversed more than a decade of gains against poverty. The World Bank estimates that the $3.65/day poverty rate rose to 25.0% in 2022 from 11.3% in 2019 and 23.8% in 2009/10 and forecasts the rate to reach 27.5% in 2024. The multidimensional vulnerability index developed by the United Nations Development Programme estimates that over half of the population faces overlapping vulnerabilities beyond income that lead them into poverty traps; 82% of such vulnerable people live in rural areas. Rural residents, in particular workers on large plantations, suffered from loss of economic opportunity, and the urban poor faced the dual vulnerability of inconsistent earnings with limited private coping mechanisms and restricted access to social protection. The impact of severe supply shortages and elevated inflation had disproportionate effects on households headed by women, the elderly, children, the disabled, and other vulnerable groups. While inflation has subsided to single digits, prices continued to be elevated, with the average index 91.8% higher in 2023 than in 2021. Wages have failed to keep up with rising prices, prolonging the squeeze on purchasing power and pushing more people into poverty. Rising maternal and child malnutrition poses a serious threat to human capital development and growth.

The near-term priority during economic recovery is to lay institutional and structural frameworks for an inclusive social protection system. In the absence of a cohesive social protection strategy and governance mechanism, programs in the past have been fragmented, with low coverage, poor targeting, high inclusion and exclusion errors, and low payments. In 2023, however, the government introduced the Aswesuma program to consolidate over 25 state-sponsored cash-transfer programs that were previously managed by several government agencies. The new social protection program covers nearly 40% of the population at various income levels and includes a self-registry database for a more objective and streamlined selection process aimed at minimizing leakage. This program can be further strengthened with increased individual support, better forward planning and an effective graduation mechanism with technical and life skills training, better financial literacy education, and enhanced social and financial inclusion. The government must establish a comprehensive long-term strategy for poverty eradication that monitors progress and incorporates regular social dialogue to ensure the representation and participation of all stakeholders.

Addressing gender inequality is a key priority. In an economically active population of 8.5 million in 2022, female labor force participation was only 32.1%, down from 33.6% in 2018 prior to the economic crisis. Key reasons for this include a lack of safe and affordable childcare facilities, inadequate provision for flexible working hours, onerous household responsibilities and care duties socially imposed on women, and public transport inadequacies for women. While the private sector has addressed these shortcomings to some extent, the government can tackle gender inequality through a more supportive framework for female labor participation by introducing flexible work hours and mandating equal pay. Reforming labor laws is also essential to formalize informal employment and protect workers from exploitation. Given the absence of an employment-linked support system, a contributory unemployment insurance scheme and related laws may be considered.

The government should enhance access to public services to mitigate inequalities and better target poverty alleviation efforts. The integration of social protection programs with other public services such as education and health care would ensure universal access to essential services, improve targeting and coverage, and expand social inclusion. In this regard, government efforts to revamp education policy with updated curricula, improved teacher training, and digitalization are welcome. While the state-sponsored universal health-care coverage and subsidized medicine provide considerable support to the poor, the government can better leverage the health-care system for more targeted measures and promote health insurance programs to protect the poor and vulnerable. The government should intensify efforts to train and retain health and care staff, particularly considering significant outmigration by professionals. Given fiscal constraints, expanding access to services could be achieved by enabling greater private sector participation in essential services. Investments in infrastructure for water supply, road connectivity, and energy are needed to address inequality in income and opportunity, and in access to resources.

Creating jobs and fostering sustainable livelihoods would go a long way toward alleviating poverty. This can begin by improving workforce productivity, particularly in agriculture, which employs 27% of the labor force but contributes little to GDP. The government must prioritize modernizing agriculture by resolving issues regarding farmland, investing to improve land productivity, and promoting greater value addition and diversification in agricultural exports. Policies targeting structural economic transformation—by promoting investment in manufacturing and technology, digital inclusion, the adoption of global best practices in industry, and skill enhancement—would ensure increased job creation outside of agriculture with high productivity and thus bolster worker earning capacity across the economy. To catalyze economic expansion, development, and job creation, the government should promote private sector participation through consistent policies and the regulatory, legal, and institutional support necessary for private sector development. Embracing pro-poor tourism policies by providing the necessary regulatory support and capacity building would ensure optimal transfers of benefits to local communities.

Source: Asian Development Bank. 2024. Asian Development Outlook (ADO) April 2024


Manager - Equity Analytics
Manager - Equity Analytics

We see the rise of billionaires worldwide. Similarly, gap between rich and poor has increased more quickly.

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum