1. Sri Lanka Country Report Colombo National Development Priorities for Poverty Reduction By Nadika Amaratunga Assistant Director, Department of National

1

Sri Lanka Country Report

Colombo

National Development Priorities for Poverty

Reduction

By Nadika AmaratungaAssistant Director ,

Department of National Planning

Ministry of Finance & Planning

GeographySri Lanka is an Island situated in the

Indian Ocean, off the base of the

Indian Sub Continent

Total Land Area is 65,610 sq.km

It is 435 km long and 240 km wide

Highest elevation is 2500+ meters

Commercial Capital - Colombo (Population - 800,000 approximately)

Other large cities - Jaffna, Kandy, Galle

Ports - Colombo, Trincomalee, and Galle

International Airport – Katunayake

Sri Lanka- Country Profile

History

• Recent excavations show that even during the Neolithic Age, there were food gatherers and rice cultivators in Sri Lanka. Very little is known of this period

• Recorded history begins in the 6th century B.C. with the arrival of Indo Arians (For more details: visit www.lk)

• There is evidence to show that direct trading between the west and Sri Lanka began towards the end of the 1st century.

ClimateTropical monsoon climate. Climatically Sri Lanka has no off seasons- bright, sunny & warm days are the rule and are common even during the height of the monsoon. Temperature Low country:

min. 24.4oC;

max.31.7oC

Hill country: min. 17.1oC;

max. 26.3oC

Rainfall Annual (average) : 1,630 mm.

Socio–Eeconomic Indicators

CategoryCategory YearYear Measurement Measurement Total Population 2008 19 (Million) 1.0 (Rate of

growth)

GDP( Market Price) 2008 40,714 (US $ ) 6.0 (Rate of growth)

GDP Per capita 2008 2014 (US $)

Unemployment 2008

5.2 (Total rate)

3.6 (Male rate)

8.5 (Female rate)

Literacy 2008

90.6 (Total Percentage)

92.2 (Male Percentage)

89.1 (Female Percentage)

Life Expectancy 2008

72 Year (Total)

70.1 Year (Male)

74.8 Year (Female)

Socio–Eeconomic Indicators

CategoryCategory YearYear Measurement Measurement Unemployment 2008 3,94,000 (No) 5.2% Rate

Life Expectance at Birth

2008 73.4 (Years)

Literacy Rate 2008 90.8%

Access to Safe Drinking Water

200878%

Pipe- Born water 2008 34.5%

Electricity of H/H 2008 83%

Road village coverage 2008 95%

Women Population 2008 10,105 (Thousand)

Employed Women 2008 2,511 (Thousand)

Public Service Women 2008 548(Thousand)

Women Unemployment Rate

20088%

9

Government Activities Monitoring and Evaluation Mechanism

Ministry of Finance + Other Ministries

Provincial councils

District secretariat

Divisional secretariat

Grama Niladari division = Village level

PEOPLE

Mun

icip

aliti

es a

nd P

rade

sia

saba

s

Causes of Poverty in Sri Lanka

(i ) Lack of assets, especially land (ii) Imperfect property rights and miniature holding size (iii) Shortfalls in access to water, particularly in the non-irrigated areas of the dry zone (iv) Weak institutional arrangements and practices, especially with regard to land (v) Non competitive product markets for farm produce (vi) Limited technology adoption and utilization in rural industries (vii) Poor production standards and low product quality in rural industries (vii) High capital costs (ix) Raw material and resource bottlenecks (x) Limited access to production and marketing information (xi) Shortfalls in physical infrastructure such as inadequate power, energy and communications (xii) The absence of high mobility roads and a transport network linking villages, towns and cities.

Sector/Province/ District Poverty headcount index (percentage) by survey period

1990/91 1995/96 2002 2006/07Sri Lanka 26.1 28.8 22.7 15.2

Province

Western 19.1 16.3 10.8 8.2

Central 30.7 36.2 25.1 22.3

Southern 30.2 32.6 27.8 13.8

Eastern 10.8

North-Western 25.8 27.7 27.3 14.6

North-Central 24.5 24.7 21.5 14.2

Uva 31.9 46.7 37.2 27

Sabaragamuwa 31.0 41.7 33.6 24.2

District

Colombo 16.2 12.0 6.4 5.4

Gampaha 14.7 14.1 10.7 8.7

Kalutara 32.3 29.5 20.0 13.0

Kandy 35.9 36.7 24.9 17.0

Matale 28.7 41.9 29.6 18.9

Nuwara-Eliya 20.1 32.1 22.6 33.8

Galle 29.7 31.6 25.8 13.7

Matara 29.2 35.0 27.5 14.7

Hambantota 32.4 31.0 32.2 12.7

Batticaloa 10.7

Ampara 10.9

Kurunegala 27.2 26.2 25.4 15.4

Puttalam 22.3 31.1 31.3 13.1

Anuradhapura 24.4 27.0 20.4 14.9

Polonnaruwa 24.9 20.1 23.7 12.7

Badulla 31.0 41.0 37.3 23.7

Monaragala 33.7 56.2 37.2 33.2

Ratnapura 30.8 46.4 34.4 26.6

Poverty Headcount Index (percentage) by Province & District

The Millennium Development Goals (MDGs)Status of MDGs in Sri Lanka at a Glance

Goal

Targ

et

Indicator

1990 or

closest

Year

Latest

year

MDG Target

for 2015

Status

GO

AL 1

1 Proportion of Population below National Poverty line (%)

26.1(1990/91

)

15.2(2006/0

7) 13.0 On Track

Poverty Gap Ratio 5.6(1990/91

)

3.1 (2006/0

7)2.8

On Track

Share of Poorest quintile in National Consumption (%)

8.9(1990/91

)

7.1(2006/0

7)NA

2 Prevalence of underweight children under-five years of age (%)

38.0(1993)

21.6(2006/0

7) 19.0

On Track

GO

AL 2

3 Net enrolment ratio in primary education

95.7(1996)

97.5(2006/0

7)100.0 On Track

Proportion of pupils starting Grade 1 who reach Grade 5

68.1(1990)

99.6(2006/0

7)100.0

Almost achieved

Literacy rate of 15-24 year olds 95.6

(2001)95.8 (2006)

100.0 On Track

Goal

Targ

et

Indicator1990 or closest

Year

Latest

year

MDG Target

for 2015

Status

GO

AL 3

4 Ratios of girls to boys in Primary (grade 1 to 5) Secondary (grade 6 to 13) Tertiary (GCE A/L and above) Education

94.291.2107.7(1996)

99.0105.7187.0(2006)

100…100…100…

On Track

Ratios of literate women to men 15-24 years old

100.9(2001)

101.8(2006)

100.0Achieve

d

Share of women in wage employment in the non-agricultural sector

30.8(1993)

34.1(2008)

NA

Proportion of seats held by women in National Parliament

5.8(1994)

5.8(2007)


(Contd.)


(Contd.)

Goal

Targ

et


Year

Latest year

MDG Target

for 2015

Status

GO

AL 4

5 Under-five mortality rate (per 1000 live births)

32.0(1983-1993)

20.8

(1990-

2000)

14.0

(2005)

10.7On

Track

Infant mortality rate (per 1000 live births)

19.8(1990)

11.3(2003)

6.6On

Track

Proportion of one year-0ld children immunized against measles (%)

84.0(1990)

97.2(2006/07)

100.0On

Track

GO

AL 5

6 Maternal mortality ratio (per 100,000 live births) 42.3

(1991)

23.6

(1995)

19.7

(2003)

10.6On Track

Proportion of births attended by skilled health personnel

87.7

(1987)

94.1

(1993)

97.6 (2006/07)

100.0On

Track

Goal

Targ

et


Year

Latest year

MDG Target

for 2015

Status

GO

AL 6

7 HIV prevalence among 15-24 years old pregnant women

Not screened due to low

prevalence NA

Percentage of Population aged 15-24 with comprehensive correct Knowledge of HIV/AIDS

NA 35.3(2006)

Contraceptive prevalence rate

61.7

(1987)

66.1

(1993)

68.0(2006/07)


(Contd.)

Goal

Targ

et

Indicator

1990 or

closest Year

Latest

year

MDG Target

for 2015

Status

GO

AL 6

8 Prevalence (per 1000 population) and death rate (100,000 population) associated with malaria

16.8

0.7(1990)

0.39

0.0(2006)

0.0

0.0

On Track

Achieved

Proportion of population in malaria risk areas using effective malaria prevention and treatment measures (%) ( Children<5 yrs, * - slept under mosquito nets; # - slept under treated mosquito nets)

12(1990)

64.0*3.8#(2006/0

7)

Death rates (per 100,000 associated with tuberculosis)

3.5(1990)

1.7(2005)

On Track

Proportion of tuberculosis cases detected and cured under directly observed short courses

80.8(1998)

82.9(2005)


(Contd.)

Goal

Targ

et


Year

Latest year

MDG Target

for 2015

Status

GO

AL 7

9 Proportion of land area covered by forest (%)

33.8(1992)

29.9(2005)

33.0

Ratio of area protected to maintain biological diversity to surface area

15.5(1990)

17.2(2005)

Already achieved

Proportion of population using solid fuels

89.0(1994)

79.0(2006)


(Contd.)

Goal

Targ

et


Year

Latest

year

MDG Target

for 2015

Status

GO

AL 7

10

Proportion of population with sustainable access to an improved water source, urban and rural - *

SL

U

R

E

68.0

(1990)

82.0

96.0

81.0

61.0(2001)

84.7

95.4

84.6

57.8(2006/07

)

84.0 Already achieved

Proportion of urban and rural population with access to improved sanitation

SL

U

R

E

69.0

(1990)

67.5

77.8

67.5

43.2(2001)

93.9

91.5

94.8

85.1(2006/07

)

84.5 Already achieve

d

11

Proportion of households with access to secure tenure(1 minus the percentage of population live in slums)

NA 95.2(2006)


(Contd.)

* U- Urban Sector, R- Rural Sector, E- Estate Sector

Goal

Targ

et

Indicator

1990 or

closest

Year

Latest

year

MDG Target

for 2015

Status

GO

AL 8

13

Net ODA as % to total (Gross ODA)

Net ODA as % to GNI of DAC countries (donors’)

67.1%(1985/86

)

0.33%(1985/86

)

64.9%

(2005/06)

0.32%

(2005/06)

Proportion of total bilateral, sector-allocation ODA of OECD/DAC donors to basic social services (as % to total ODA)

13.8%(1992)

17.2%

(2005)

Proportion of bilateral ODA of OECD/DAC donors that is untied

2.9%(1992)

1.5%(2005)

ODA received in landlocked countries as proportion of their GNIs … …

ODA received in small island developing states (recipient’s) as proportion of their (Donors) GNIs

Average for DAC countries

5.0% (1992)

0.31(2005)

3.0% (2006)

0.33(2006)


(Contd.)

Goal

Targ

et

Indicator

1990 or

closest Year

Latest year

MDG Target

for 2015

Status

GO

AL 8

14

Proportion of total developed country imports from developing countries and LCDs, admitted free of duties (as a % to total exports)

91.7% 68.7%(2006)

Agricultural support estimate for OECD countries as percentage of their GDP (as a % to total ODA)

26.1%(1992)

11.0%(2005)

Proportion of ODA provided to help build trade capacity (as a % to total ODA)

0.02%(1991)

0.39%(2005)


(Contd.)

Goal

Targ

et


Year

Latest year

MDG Target

for 2015

Status

GO

AL 8

15

Debt relief committed under HIPC initiative (Debt relief as a % total ODA loans)

0.6%(1997)

17.1%(2006)

Debt service as a percentage of exports of goods and services

17.9%(1990)

12.7%(2006)

16

Unemployment rate of 15-24 year-olds, each sex and total

Both 34.9Male 29.9

Female

42.2(1993)

Both 19.0Male 15.1

Female

25.9(2008)

17

Proportion of population with access to affordable essential drugs on a sustainable basis

80.0(1990)(MoH)

NA


(Contd.)

Goal

Targ

et


Year

Latest year

MDG Target

for 2015

Status

GO

AL 8

18

Fixed Telephone lines per 100 population andCellular subscribers (per 100 population)

0.8(1991)

9.5(2006) On

Track0.0(1991)

27.0(2006)

Percentage of households using personal computers

3.8(2004)

8.2(2006/07)

On Track

Percentage of households (all) using internet

0.7(2004)

2.4(2006/07)

On Track

Percentage of households (all) using e-mail

0.9(2004)

2.3(2006/07)

On Track

Percentage of households (having personal computers) using internet

19.2(2004)

28.6(2006/07)

On Track

Percentage of households (having personal computers) using e-mail facilities

24.7(2004)

27.3(2006/07)

On Track


(Contd.)

Poverty Ratio by Sector

19901990

(%)(%)20022002

(%)(%)2006/2002006/200

77

NationNationalal

2626 232315.2

UrbanUrban 1616 0808 6.7

RuralRural 2929 2525 15.7

PlantatPlantationion

2121 3030 32.0

24

ChallengesChallenges

• Sharp regional variations in the poverty incidence.• Low productivity and wages in the agriculture and service sectors.• High vulnerability of the poor in relation to seasonality of income,

exposure to external shocks and degradation of natural resources.• Low quality of rural infrastructure.• Mismatch between skills, employment opportunities and aspirations.

Priority ActionsPriority Actions

Reform and synergize existing poverty alleviation programmes - Reform and synergize existing poverty alleviation programmes - Area-Area-based consultative and participatory poverty reduction programmes.based consultative and participatory poverty reduction programmes. Increase investment in infrastructure in less developed regions that Increase investment in infrastructure in less developed regions that

have potentials for value creation.have potentials for value creation. Diversification of agriculture with rural industrialization.Diversification of agriculture with rural industrialization. SME development.SME development. Improving regional food security & quality.Improving regional food security & quality. Nutritional support programmes for poorest families.Nutritional support programmes for poorest families.

Vision of the Ten Year Development Framework (2006-

2016)

• While maintaining the growth rate of GDP between 8%-10%, graduating the economy to the category of middle income, with per capita income of US$ 3960. (Rs. 485,000) by 2016.

Major Socio-economic objectives• Maintain a higher economic growth• Reduce regional disparities in development• Reduce poverty incidence • Minimize regional variations in poverty• Maintain the fiscal deficit at tolerable level• Transform the economy to a knowledge and

technology based one• Transform strategic public enterprises to efficient

and pro-active entities• Achieve MDG targets within the targeted

framework

Macro Level Strategies

• Maintain a liberal economy• Strong government intervention • Promote value added products• Expand export market • Promote private investments• Improve connectivity and mobility• Develop human capital• Promote public-private partnerships• Augment public investment

Key economic indicators at national level

2008 2009 2010 2011

Growth Rate 6.0 3.5 6.0 6.5

Investment rate 27.5 25.4 28.3 31.5

Savings rate (domestic)

14.1 18.2 21.3 24.2

Inflation rate 16.3 8.0 8.0 7.0

Fiscal deficit/GDP (7.7) (-7.0) (6.0) (5.0)

Trade balance/GDP (-14.0) (-8.0) (-8.2) (-8.4)

Regional disparities in development (2007)

Province GDP% Poverty ratio

Samurdhi index

Unemployment rate

Western 48 8.2 66.1 4.4

Central 09 22.3 52.9 5.9

Southern 10 13.8 51.6 8.1

Eastern 05 10.8 44.2 7.7

North Western 10 14.6 49.7 4.3

North Central 04 14.2 48.3 3.9

Uva 05 27.0 47.8 5.0

Sabaragamuwa 06 24.2 48.4 5.2

Northern 03 - 43.6 -

Sri Lanka 100 15.2 52.7 5.2

Strategies to reduce regional disparities in development/poverty• Area specific development• Improvement of rural infrastructure• SME development/Micro finance• Rural industrial development• Rural electrification• Technology to villages• Community/Rural water supply and sanitation• Primary health care and nutrition programmes• Rehabilitation of minor tanks• Income generating projects under Samurdhi

Movement & Gemidiriya Programme• Special rural focused projects(Gemidiriya, Gama

Neguma etc.)

Objectives of the Development Strategy for Regional Development

• Maintain the growth rate of regional GDP at 13% on average

• Maintain the sector growth rates in the following manner

Agriculture 10%Manufacturing 18%Services 12%

• Reduce poverty ratio from the present level of 15% to 12% by 2012

• Generate 100,000 new job opportunities in all sectors by yearly

• Develop the all Provinces on par with the rest of the country

• Ensure harmonious and peaceful living pattern in the region

Major Income Generating Projects funded through National Budget

Project

• Janapubuduwa

• Gemidiriya

• Dairy Villages

• Dahasak Maha Wev

• Industrial Villages

• SMID

• Gam Pubuduwa

Objective• Provide concessionary credit facilities to

Samurdhi beneficiary families• Promote gainful economic activities among

poor families• Promote milk production at village level through

farmer managed societies.• Rehabilitation of minor tanks and augment

water supply facilities for cultivation purposes

• Provide common services, infrastructure facilities, capital goods and market facilities for small industrialists.

• Provide credit facilities to small scale industries and enterprises.

• Improve rural infrastructure facilities with community participation to create a conducive environment for entrepreneurial activities.

.

• Vidatha Programme Establish IT centers at village level to improve computer literacy.

• Yovun Diriya Provide tool kits for skilled persons like masons and carpenters.

• Vocational Training for Differently Abled Train differently abled persons to engagePeople in gainful employment.

• Kantha Diriya Train poor women to engage in handloom industry or other crafts at village level.

• All these projects will be coordinated at village and divisional levels under the proposed Grama Sabas and Jana Sabas of the “Gama Neguma” Progarmme (Prosperous Village)

• The existing livelihood cluster meeting attended by all the relevant Secretaries and chaired by the Secretary to the Treasury will be further strengthened to review the progress of the Gama Neguma at national level

Micro Financing and SME Development

• Micro Financing

Provision of small concessionary loans to low income families to cover working capital of their own income generating projects. (Average loan size is from Rs,25,000 to Rs.50,000)

• SME Development

Provision of fairly big loans for small and medium scale enterprises. According to World Bank classification, enterprises with less than 50 employees are considered as small enterprises. Enterprises with employees between 50 to 100 are considered as medium scale enterprises.

The Mega projects contained in the Investment Programme will focus

on• Restoration of socio-economic stability• Revitalization of livelihood activities• Expansion of productive sectors• Improvement of economic infrastructure• Upliftment of the rural economy• Full exploitation of marine resources• Improvement of skills in the labour force• Boosting the industrial development • Strengthening of institutional capacity and

quality of the public service

Major thrust of the investment strategy

• Social Protection

– Supporting self-income generating activities

– Provisioning basic needs and relief assistance

– Alleviating poverty

– Caring destitute and vulnerable groups

Economic Infrastructure

• Upgrading economic infrastructure through different financing mechanisms

• Attraction of private investments

• Ensuring connectivity with the rest of the country

• Facilitating transport of goods and passengers

• Revitalization of the provincial economy

Social Infrastructure

• Establishment of healthy labour force

• Establishment of a knowledge based society

• Establishment of a skillful manpower-base

• Strengthening of cultural ties among different social groups

• Active involvement of the youth in the development process

Suggestions• Better co-ordination of micro finance programmes at

local level in order to avoid duplication works, geographical over lapping and wrong practices in selecting target groups.

• Regulation of micro-finance programmes by a national level authority in order to create a level playing field and avoid discriminatory practices.

• Establishing an effective monitoring system at divisional level to evaluate the progress of the poverty reduction projects and take prompt actions accordingly.

• Divert more private and public investments to remote and lagging behind regions through appropriate incentives and other government interventions in order to avoid mismatch between the macro-economic policies and pro-poor growth policies. Anchor projects which have strong linkage effects and high value addition are suggested to be implemented in less developed districts.

A Village in 2020 Comprises

Self Sufficient Villagers Modern Road NetworkComfortable HousesProper Transportation NetworkAdvanced Network Connection Health Centre and School with all facilitiesGreen BeltHigh Quality Living SpacesSports ClubOne stop Administration CentreAdvanced Medical Care SystemRecreation Centre Daycare centres for children and Elders Vocational Training Centre Contended Civil Society with Religious, Cultural and Spiritual Values

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WELCOME TO SRI LANKA

STHOOTHIESTHOOTHIE

THANK YOUTHANK YOU

Documents

1. Sri Lanka Country Report Colombo National Development Priorities for Poverty Reduction By Nadika Amaratunga Assistant Director, Department of National