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)
The Millennium Development Goals (MDGs)Status of MDGs in Sri Lanka at a Glance
(Contd.)
The Millennium Development Goals (MDGs)Status of MDGs in Sri Lanka at a Glance
(Contd.)
Goal
Targ
et
Indicator1990 or closest
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
Indicator1990 or closest
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)
The Millennium Development Goals (MDGs)Status of MDGs in Sri Lanka at a Glance
(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)
The Millennium Development Goals (MDGs)Status of MDGs in Sri Lanka at a Glance
(Contd.)
Goal
Targ
et
Indicator1990 or closest
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)
The Millennium Development Goals (MDGs)Status of MDGs in Sri Lanka at a Glance
(Contd.)
Goal
Targ
et
Indicator1990 or closest
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)
The Millennium Development Goals (MDGs)Status of MDGs in Sri Lanka at a Glance
(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)
The Millennium Development Goals (MDGs)Status of MDGs in Sri Lanka at a Glance
(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)
The Millennium Development Goals (MDGs)Status of MDGs in Sri Lanka at a Glance
(Contd.)
Goal
Targ
et
Indicator1990 or closest
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
The Millennium Development Goals (MDGs)Status of MDGs in Sri Lanka at a Glance
(Contd.)
Goal
Targ
et
Indicator1990 or closest
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
The Millennium Development Goals (MDGs)Status of MDGs in Sri Lanka at a Glance
(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
42
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WELCOME TO SRI LANKA
STHOOTHIESTHOOTHIE
THANK YOUTHANK YOU
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