Declining trend in Lankan poverty

Ruwanthi Abeyakoon

POVERTY: Poverty in Sri Lanka has decreased although the progress has been slow. In 1990 it was estimated that 26 per cent of the population earned less than 1$ as their daily income. By 2015 it should be brought down to 13 per cent in order to reach development, Director, Regional Development, Department of Central Bank of Sri Lanka, W. M. Karunaratne said.

"Poverty is mostly seen in the plantation sector. The statistics in the year 2002 showed 30 per cent of poverty in the plantation sector, 24.7 per cent in the rural sector and 7.9 per cent in the urban sector," Karunaratne explained.

He also added that the above statistics does not involve North and East. "Many people in these areas are affected with poverty because of the conflict situation. Private banks and the Central Bank should work together in poverty alleviation. This can be done through micro financing," he said.

"Access to finance will be enhanced in poverty alleviation and the income of the middle class will also be enhanced as it is the mostly affected segment," Karunaratne said.

He pointed out that poverty is an obstacle in the way to development in Sri Lanka as well as in several South Asian countries. "The international community is aware of this problem and poverty is considered as a major calamity. Micro Financing started in Bangladesh in 1970.

Sri Lanka should also adapt rural banking project to provide the poor with loans. It is one of their human rights. We should also build confidence in people in obtaining loans," Karunaratne said.