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COUNTRY REPORT SRI LANKA

R.M. Ariyaratne S.P.Sandanayake M.F.K. Nissa

INCOME GENERATION AND POVERTY REDUCTION FOR DEVELOPMENT

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Outline of the presentation

Country background Administration pattern Social Condition Poverty Reduction Strategy

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Sri Lanka National FlagSri Lanka National Flag

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Government CrestGovernment Crest

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Introduction# Ceylon was under Foreign Occupation from

16th century to 1948(Portugese, Dutch and British)# Sri Lanka gained an Independence in 1948# The country was renamed as “Democratic

Socialist Republic of Sri Lanka” in 1972

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Total Area 65 610 sq. km

Land Area 62 705 sq. km

Inland water 2 905sq.km

Maximum length 435km

Maximum width 225km

Temperature

Over the lowlands 30.0 C

Highlands 18.0 C

Geography in brief _ SRI LANKA

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DemographyDemography

Races Sinhalese 74%Races Sinhalese 74% Tamil 18%Tamil 18% Other 8%Other 8%

Religions Buddhist 70%Religions Buddhist 70% Hindu 15%Hindu 15% Christian 8%Christian 8% Islam 7%Islam 7%

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PopulationPopulation

EstimatedEstimated mid year population (2008) 19.9 millions mid year population (2008) 19.9 millions

Population density 310 per sq. kmPopulation density 310 per sq. km

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Administrative UnitsAdministrative Units

Number of ProvincesNumber of Provinces 9 9

Number of Administrative Districts 25Number of Administrative Districts 25

Number of Divisional Secretariats Number of Divisional Secretariats 325 325

Number of Grama Niladhari Divisions 14013 Number of Grama Niladhari Divisions 14013

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KEY SOCIO INDICATORSKEY SOCIO INDICATORS

Infant mortality 12 (per ‘000 live births)Infant mortality 12 (per ‘000 live births) Maternal mortality 0.2 (per ‘000 live births)Maternal mortality 0.2 (per ‘000 live births) Average household size 4.3Average household size 4.3 Expectation of life at birth: Male 71.7 yearsExpectation of life at birth: Male 71.7 years Female 77.0 yearsFemale 77.0 years Literacy rate: Overall 92.5%Literacy rate: Overall 92.5% Male 94.5%Male 94.5% Female 90.6% Female 90.6%

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Key Economic IndicatorsKey Economic Indicators

Key Economic IndicatorsKey Economic Indicators 19901990 20042004 20072007

GDP Growth Rate (%)GDP Growth Rate (%) 6.46.4 5.45.4 7.47.4

Unemployment Rate (%)Unemployment Rate (%) 15.915.9 8.38.3 6.56.5

Investment/GDP(%)Investment/GDP(%) 22.222.2 25.025.0 28.728.7

GDP(Normal) Per Capita ($)GDP(Normal) Per Capita ($) 473473 10301030 16171617

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Sri Lanka at a GlanceSri Lanka at a Glance

Agricultural countryAgricultural country Manufacturing sector contribution is comparatively Manufacturing sector contribution is comparatively

lowlow Service sector is becoming significantService sector is becoming significant The economy was liberalized in 1977The economy was liberalized in 1977 Private sector is now promotedPrivate sector is now promoted Government plays regulatory and facilitating rolesGovernment plays regulatory and facilitating roles Main sources of foreign exchange: Foreign Main sources of foreign exchange: Foreign

employment, Garments, Tea, Rubber, Coconut and employment, Garments, Tea, Rubber, Coconut and Minor exports. Minor exports.

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WHAT IS POVERTY?WHAT IS POVERTY? Lack of access to human needsLack of access to human needs Inability to satisfy minimum needsInability to satisfy minimum needs In general, a poor person is defined as someone who In general, a poor person is defined as someone who

suffers from significant economic, social and human suffers from significant economic, social and human deprivationdeprivation

World Bank sees poverty as deprivation of material World Bank sees poverty as deprivation of material wellbeingwellbeing

Econimists focus on material deprivation while Econimists focus on material deprivation while sociologists and anthropologists consider deprivation of sociologists and anthropologists consider deprivation of social, cultural and political rightssocial, cultural and political rights

In defining poverty, the importance of a holistic In defining poverty, the importance of a holistic approach must be emphasized. approach must be emphasized.

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Poverty Measurement and Poverty Poverty Measurement and Poverty Profile In Sri LankaProfile In Sri Lanka

Population below US$1a day(1990-2004) - 5.6%Population below US$1a day(1990-2004) - 5.6% Population below US&2 a day(1990-2004)- 41.6%Population below US&2 a day(1990-2004)- 41.6% Human Development Index(2004) – 0.755Human Development Index(2004) – 0.755

(Ranking among 177 countries: 93)(Ranking among 177 countries: 93) Access to safe drinking water - 92.5%Access to safe drinking water - 92.5% Access to pipe-born water - 38.9%Access to pipe-born water - 38.9% Households with electricity - 78.1%Households with electricity - 78.1%

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Recent Poverty Reduction Policy Recent Poverty Reduction Policy FrameworksFrameworks

Vision 2010(2000)Vision 2010(2000) Regaining Sri Lanka(including PRS paper) (2003)Regaining Sri Lanka(including PRS paper) (2003) Country Forward – “Rata Perata” (2004)Country Forward – “Rata Perata” (2004) Poverty Reduction Srategy – Discussion Paper (2005)Poverty Reduction Srategy – Discussion Paper (2005) ““Mahinda Chintana” – A Vision for New Sri Lanka, Mahinda Chintana” – A Vision for New Sri Lanka,

Ten Year Development Horizon- Discussion Paper Ten Year Development Horizon- Discussion Paper (2007) (2007)

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Mahinda Chintana: A Ten Year Mahinda Chintana: A Ten Year Development Horizon (2006- 2016) Development Horizon (2006- 2016)

10 year Development Plan for Sri Lanka10 year Development Plan for Sri Lanka Development based on the ‘Mahinda Chintana” A Development based on the ‘Mahinda Chintana” A

Vision for New Sri Lanka, the Election Manifesto Vision for New Sri Lanka, the Election Manifesto (Nov. 2005) of H.E. the President Mahinda (Nov. 2005) of H.E. the President Mahinda RajapakshaRajapaksha

Main policy is to achieve 6-8% growth in the medium Main policy is to achieve 6-8% growth in the medium term and 8-10% growth in the long term, while term and 8-10% growth in the long term, while uplifting the life standard of the people by reducing uplifting the life standard of the people by reducing poverty, regional disparities and achieving MDGs poverty, regional disparities and achieving MDGs

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Summary of Poverty Lines at Summary of Poverty Lines at 2002 National Prices2002 National Prices

1.FOOD Poverty Line1.FOOD Poverty Line Rs. 973 per cap/monthRs. 973 per cap/month

2.LOWER Poverty Line2.LOWER Poverty Line Rs. 1267 per cap/month Rs. 1267 per cap/month

3.UPPER Poverty Line3.UPPER Poverty Line Rs. 1579 per cap/monthRs. 1579 per cap/month

4.OFFICIAL POVERTY 4.OFFICIAL POVERTY LINE LINE

Rs. 1423 per cap/month Rs. 1423 per cap/month (Now this has increased to (Now this has increased to Rs.2945)Rs.2945)

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Poverty Reduction Programs/ProjectsPoverty Reduction Programs/Projects

Samurdhi ProgramSamurdhi Program

““Gamidiriya” Livelihood Development ProjectGamidiriya” Livelihood Development Project (world bank funds)(world bank funds)

““Gamaneguma” Rural Infrastructure Gamaneguma” Rural Infrastructure Development ProgramDevelopment Program

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Interventions of Social Safety Net Interventions of Social Safety Net

Samurdhi ProgramSamurdhi Program

School Midday Meal ProgramSchool Midday Meal Program

Free Education FacilitiesFree Education Facilities

Free Health FacilitiesFree Health Facilities

Gamaneguma Programme Gamaneguma Programme

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Main activities of Samurdhi Main activities of Samurdhi ProgrammeProgramme

_ Samurdhi Releif Programme

Nutrition Allowance Programme

Milk Subsidy “Glass of Milk” Programme

Samurdhi Social Security Fund

Infrastructure Development

Social Development

Micro Financince

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Samurdhi Relief Programme

Implemented for poor families to maintain their family living standards without further deterioration

Income < poverty line

Samurdhi Stamp No. of members

in the family

National LevelTotal Beneficiary families = 1.6 Mn

Allocation = 9600 Rs’Mn’

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Nutrition Allowance Programme

To improve the nutritional status of lactating mothers in low income families

Rs.200/=

“Mahinda Chinthanaya “ Programme

Target Group

Pregnant and Lactating mothers

Rs.500/=

Collaborating with Ministry of Health and Nutrition

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Samurdhi Social Security Fund

IncidentIncident Payment (Rs)Payment (Rs)

DeathDeath 10,00010,000

HospitalizedHospitalized 3000 * 3000 *

MarriageMarriage 3000 **3000 **

1000 ***1000 ***

BirthBirth 5000 #5000 #

2500 ##2500 ##

* Rs.100/- per day, Maximum 30 days

** Marriage of the Beneficiary

*** Marriage of the Other member of Beneficiary Family

# Maiden Birth

## Second Birth

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Infrastructure Development Programme

I. Gampubudu Program

II.II. Program for Upgrading Living ConditionProgram for Upgrading Living Condition

•Sanitary ProgramSanitary Program -“Gami Suwasetha”-“Gami Suwasetha”

•Drinking Water Progra-“ Gami Suwasetha”Drinking Water Progra-“ Gami Suwasetha”

•Housing Program – “DiriyaHousing Program – “Diriya Piyasa”Piyasa”

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1.Human Development Activities1.Human Development Activities Anti Narcotic ProgramsAnti Narcotic Programs Anti Smoking ProgramsAnti Smoking Programs Programs for Protecting Child Abusing Programs for Protecting Child Abusing Women Development ProgramsWomen Development Programs Scholarships ProgramsScholarships Programs Cultural Development ProgramCultural Development Program

Social Development Program

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Microfinance (Samurdhi Banks)

SavingsSavings Micro Loans Micro Loans Other Support ServicesOther Support Services Income Generation ProgramsIncome Generation Programs Janapubudu ProgramJanapubudu Program

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Some Key Issues on Poverty Some Key Issues on Poverty in Sri Lankain Sri Lanka

Though free Education and free Health Though free Education and free Health Services have benefited, major Services have benefited, major poverty poverty alleviation programs do not seem to have had alleviation programs do not seem to have had desired effectdesired effect on the poor people of this on the poor people of this country.country.

Inappropriately targetingInappropriately targeting the welfare benefits the welfare benefits for poor. (Most deserving households are not for poor. (Most deserving households are not receiving Samurdhi) receiving Samurdhi) (p. 33)(p. 33)

Huge Huge disparitiesdisparities between the rich and the poor. between the rich and the poor. ( p. 18).( p. 18).

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Poverty Maps show that Poverty Maps show that lack of proper road lack of proper road network and geographical isolationnetwork and geographical isolation are highly are highly correlated with the incidence of poverty.correlated with the incidence of poverty.

Those who are depending only on Those who are depending only on agriculture agriculture are are vulnerable to any natural disastersvulnerable to any natural disasters such as such as floods, droughts etc.floods, droughts etc.

In the In the poorest DSDspoorest DSDs , around , around 75%75% of the of the Heads of Households (HOHs) are engaged in Heads of Households (HOHs) are engaged in own account work, mainly in own account work, mainly in agriculture agriculture and and 90% HOHs 90% HOHs have not reachedhave not reached even even G.C.E.(O/L).G.C.E.(O/L).

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Inadequate water in dry zone.Inadequate water in dry zone. More than 70% of the Major Industries are located in More than 70% of the Major Industries are located in

the Western Province.the Western Province. High intervention of middlemen for agriculture High intervention of middlemen for agriculture

products marketing.products marketing. Daily wage salaries for estate workersDaily wage salaries for estate workers Project implementation issues in Conflict- affected Project implementation issues in Conflict- affected

areasareas High interest rates for micro-financingHigh interest rates for micro-financing On going warOn going war

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A New Approach…A New Approach…“Jathika Saviya – Gama Neguma”“Jathika Saviya – Gama Neguma”

Identified 119 villages in poorest 119 DSDs using Identified 119 villages in poorest 119 DSDs using the Poverty Map done by the Census & Statistics the Poverty Map done by the Census & Statistics Department.Department.

Aim is to build a micro enterprise village with Aim is to build a micro enterprise village with comprehensive facilities, such as access roads, comprehensive facilities, such as access roads, schools, health centers, ICT centers, industries, schools, health centers, ICT centers, industries, agricultural facilities, micro-finance etc.agricultural facilities, micro-finance etc.

Integration of all rural development and poverty Integration of all rural development and poverty reduction programsreduction programs

A Top – bottom & Bottom – up ProgramA Top – bottom & Bottom – up Program

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A New Approach…A New Approach…“Jathika Saviya – Gama Neguma”“Jathika Saviya – Gama Neguma”

Project identification by – Village CommitteeProject identification by – Village Committee (at village level)(at village level)

Project steering by – People’s CommitteeProject steering by – People’s Committee (at DSDs level)(at DSDs level)

Project implementation by – Ministries & DepartmentsProject implementation by – Ministries & Departments Project Supervision by – Vigilance CommitteeProject Supervision by – Vigilance Committee (at village level)(at village level)

Overall Coordination and Supervision by – Ministry of Overall Coordination and Supervision by – Ministry of Nation Building & Estate Infrastructure DevelopmentNation Building & Estate Infrastructure Development

Policy Guidelines by – Ministerial level Steering Committee Policy Guidelines by – Ministerial level Steering Committee

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Formulation of Village Organization

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Group Economic Activities

Nursery of Pepper

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Thank YouThank You