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  1. A Y U B O W A N

  2. Sri Lanka Country Report Colombo

  3. National Development Priorities for Poverty Reduction By Nadika AmaratungaAssistant Director , Department of National Planning Ministry of Finance & Planning

  4. Sri Lanka- Country Profile Geography Sri Lanka is an Island situated in the Indian Ocean, off the base of the Indian Sub Continent • Total Land Area is 65,610 • 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

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

  6. 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.

  7. Socio–Eeconomic Indicators

  8. Socio–Eeconomic Indicators

  9. Government Activities Monitoring and Evaluation Mechanism Ministry of Finance + Other Ministries Provincial councils District secretariat Municipalities and Pradesia sabas Divisional secretariat Grama Niladari division = Village level PEOPLE

  10. 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.

  11. Poverty Headcount Index (percentage) by Province & District

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

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

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

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

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

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

  18. The Millennium Development Goals (MDGs)Status of MDGs in Sri Lanka at a Glance(Contd.) * U- Urban Sector, R- Rural Sector, E- Estate Sector

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

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

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

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

  23. Poverty Ratio by Sector

  24. 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. Challenges Priority Actions • Reform and synergize existing poverty alleviation programmes - Area-based consultative and participatory poverty reduction programmes. • Increase investment in infrastructure in less developed regions that have potentials for value creation. • Diversification of agriculture with rural industrialization. • SME development. • Improving regional food security & quality. • Nutritional support programmes for poorest families.

  25. 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.

  26. 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

  27. 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

  28. Key economic indicators at national level

  29. Regional disparities in development (2007)

  30. 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.)

  31. 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%

  32. 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

  33. 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. . Major Income Generating Projects funded through National Budget

  34. 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 engage People 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

  35. 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.

  36. 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

  37. 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

  38. 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

  39. 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

  40. 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.

  41. 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