Sri Lanka, a nation known for its breathtaking landscapes, rich cultural heritage, and resilient people, is also grappling with a critical issue: poverty. Despite its progress over the years in various sectors such as healthcare, education, and infrastructure, poverty remains a persistent challenge that affects a significant portion of the population.
In this blog, we will explore the current state of poverty in Sri Lanka, its root causes, and possible solutions that can empower the nation to tackle this issue effectively.
The Current Landscape of Poverty in Sri Lanka
Poverty in Sri Lanka is not a monolithic issue. It manifests in various forms, from rural to urban poverty, each with its own set of challenges. Rural areas, where agriculture remains the primary source of livelihood, are particularly vulnerable. Farmers, especially small-scale producers, face inconsistent income due to factors like unpredictable weather patterns, limited access to markets, and outdated agricultural practices.
Urban poverty, while different, is also significant. In cities like Colombo, there is a stark contrast between the affluent urban elite and the working poor, who often face insecure employment, overcrowded living conditions, and limited access to essential services. Additionally, the rapid urbanization of the past few decades has led to the growth of informal settlements, where millions of people live in substandard housing with inadequate access to sanitation, clean water, and education.
The COVID-19 pandemic exacerbated these disparities, leading to widespread job losses and a rise in inequality. The crisis highlighted the vulnerability of marginalized communities, making it clear that poverty reduction needs urgent attention.
Root Causes of Poverty in Sri Lanka
Several factors contribute to the persistence of poverty in Sri Lanka:
- Economic Inequality: While Sri Lanka’s economy has grown steadily over the years, wealth distribution remains highly uneven. The gap between the rich and the poor continues to widen, and many marginalized groups remain excluded from the benefits of economic progress.
- Rural-Urban Divide: As mentioned, rural areas remain disproportionately affected by poverty. The lack of infrastructure, limited access to modern technology, and inadequate healthcare and educational facilities prevent rural communities from accessing opportunities that would improve their livelihoods.
- Unemployment and Underemployment: A significant portion of the working-age population in Sri Lanka faces either unemployment or underemployment. Many people, especially youth, struggle to find stable, well-paying jobs. This leads to a reliance on low-wage and informal sector work, which provides no long-term security or benefits.
- Education and Skill Gaps: Although Sri Lanka has made strides in improving access to education, quality remains uneven, particularly in rural areas. Lack of access to vocational training and skills development prevents many from securing better-paying jobs or starting their own businesses.
- Environmental Vulnerabilities: Sri Lanka’s economy is heavily dependent on agriculture, which is particularly vulnerable to climate change. Droughts, floods, and other natural disasters disproportionately affect low-income communities, pushing them further into poverty.
Solutions: Reducing Poverty in Sri Lanka
While the problem of poverty in Sri Lanka is complex, there are several steps the nation can take to reduce poverty and improve the living standards of its people.
- Inclusive Economic Growth
To reduce poverty, Sri Lanka must focus on fostering inclusive economic growth that benefits all segments of society. This can be achieved by promoting small and medium enterprises (SMEs), ensuring better access to credit for rural and low-income communities, and creating jobs in sectors like technology, tourism, and renewable energy. Additionally, supporting micro-businesses and promoting entrepreneurship can empower people to lift themselves out of poverty. - Enhancing Education and Skills Development
Investing in education and vocational training is crucial for breaking the cycle of poverty. Ensuring that all children have access to quality education is vital, but so is equipping the youth with relevant skills for the job market. The government should partner with the private sector and international organizations to develop training programs that teach not only technical skills but also entrepreneurship, digital literacy, and soft skills. - Improving Rural Infrastructure
A significant portion of the poverty in Sri Lanka is concentrated in rural areas. Improving rural infrastructure, such as access to electricity, water, roads, and healthcare services, will help reduce inequality. The government should prioritize investments in rural development, promoting sustainable farming practices, improving market access, and providing farmers with tools to increase productivity and resilience against climate change. - Social Safety Nets and Welfare Programs
Sri Lanka can further strengthen its social safety nets to ensure that those in extreme poverty receive adequate support. Expanding access to healthcare, nutrition programs, and direct financial support can help reduce the vulnerability of the poorest households. Conditional cash transfers and universal basic income could be explored as tools to alleviate immediate poverty and provide people with the resources to improve their livelihoods. - Encouraging Sustainable Development
Given the significant environmental vulnerabilities Sri Lanka faces, adopting a more sustainable development model is crucial. Investing in green technologies, promoting renewable energy, and supporting climate-resilient farming can create new job opportunities while mitigating the impact of climate change. Furthermore, encouraging eco-tourism can help provide income to rural communities while protecting Sri Lanka’s unique biodiversity. - Strengthening Public Health Systems
Health is both a cause and a consequence of poverty. Poor health leads to lost income and increased medical expenses, which can keep people trapped in poverty. Strengthening the public health system, providing affordable healthcare services, and addressing malnutrition can improve productivity and reduce the long-term impact of illness on families. - Community-Led Development
Poverty reduction should not only be a top-down process. Community participation is essential to ensure that policies and programs meet the specific needs of local populations. Engaging communities in decision-making processes and empowering them to identify and implement solutions can lead to more sustainable and impactful outcomes.
Conclusion
Poverty in Sri Lanka is a multifaceted issue, but with the right policies, investments, and collaborative efforts, it can be reduced. By focusing on inclusive economic growth, improving education, building infrastructure, and addressing the environmental challenges the country faces, Sri Lanka can take meaningful steps toward poverty reduction. However, this requires a collective effort—government, private sector, civil society, and citizens—working together for a more equitable and prosperous future for all.
In the words of Mahatma Gandhi, “Poverty is the worst form of violence.” It is up to Sri Lanka’s leaders and people to find a path toward reducing poverty and building a more just and sustainable society for future generations.
Penned by : Rtr. Sandithi Dias


