JANUARY

TO

JUNE 2016

DIGEST

Global Goals:
Is Sri Lanka Ready?

Balancing the
Scales: Taming
Supermarket
Buyer Power

page 06

Attracting Foreign
Direct Investment
to Sri Lanka: The
Need for Proactive
Investor Facilitation
page 12

Can Sri Lanka

Eradicate Poverty
and Reduce Income
Inequality
by 2030?
page 27

Sri Lankas Invisible

Children: The Need
for Inclusive Education
for Children with
Special Needs
page 32

08

16

04

46

36

42

04
06

Brexit: The Not-So-United Kingdom

08

Opening Up the Skies: Benefits of Air Services Liberalization

What We Can Learn from the India-Sri Lanka Experience

10

Re-orientation of External Trade Towards Global Production

Networks An Urgent Need for Sri Lanka

12

Attracting Foreign Direct Investment to Sri Lanka: The Need for

Proactive Investor Facilitation

14

Will TPP Lead to Trade Diversion from Sri Lanka?

16

2016: Ratifying the Trade Facilitation Agreement and the Year of

Digital Customs

18
20

Chinas One Belt One Road Initiative: Implications for Sri Lanka

22
23

Implementing Green Goals in SDGs in Sri Lanka

24

Making a Better Place for Her: Gender Equality for Sustainable

Development in Sri Lanka

26
27

Expert Insights: Interview with Dr. Nagesh Kumar

29
30

IPS Publications

32

Sri Lankas Invisible Children: The Need for Inclusive Education

for Children with Special Needs

34

World Cancer Day: Prevention is better than Cure: A Role for

Everyone to Play

36
38

Beat Diabetes in Sri Lanka: Too Much Sugar is Not that Sweet

Executive Director
Saman Kelegama, DPhil (Oxon)

Balancing the Scales: Taming Supermarket Buyer Power

From Millennium Development Goals to Sustainable Development

Goals: Is Sri Lanka Ready for the Next Step?

Inside IPS

Can Sri Lanka Eradicate Poverty and Reduce Income Inequality

by 2030?

Can We Produce Better Estimates of Urbanization in Sri Lanka?

World Kidney Day 2016: What More Can Sri Lanka Do To Save
Lives?

Deputy Director
Dushni Weerakoon, PhD (Manchester)

On 25th Sept, 2015, 193 member states of the United Nations including Sri Lanka adopted the 2030
Agenda for Sustainable Development. In effect, they agreed to: end poverty and hunger, combat
inequalities, build peaceful, just and inclusive societies, protect human rights, promote gender
equality and empower women and girls, protect the planet and its natural resources, and to balance
the economic, social and environmental dimensions of sustainable development. This comprehensive
agenda contains 17 Sustainable Development Goals (SDGs) and associated 169 targets, which are to
be achieved by 2030, requiring action by the international community and national governments.
The new development agenda builds on the achievements of the Millennium Development Goals
(MDGs), which were adopted in 2000 and guided development activities during the last 15 years. The
MDGs proved that goal setting can lift millions out of poverty, and improve living conditions, including
peoples access to education, health, safe & adequate water and sanitation, etc.
Achieving SDGs by 2030 could be a difficult task unless all stakeholders work in unison. In this
regard, proper awareness and coordination between Ministries, Departments, other government
agencies, and stakeholders (private sector, civil society, and people) are important. In fact, every
single person in each country has a role to play. In the feature article, From Millennium Development
Goals to Sustainable Development Goals: Is Sri Lanka Ready for the Next Step? Wimal Nanayakkara
emphasis this point and highlights further steps Sri Lanka can take to ensure that the country
successfully achieves the agreed goals.
The Digest also contains three other articles, which look closely at some of the SDGs relating
to poverty and inequality, gender, and environment. Reducing incidence of poverty by half and
eradicating extreme poverty, are two of the important targets expected to be achieved by 2030, and
the article, Can Sri Lanka Eradicate Poverty and Reduce Income Inequality by 2030? explores what
Sri Lanka can do to achieve these targets in time.
Environment goals also take prominence in SDGs, with several related indicators cutting across
many goals. Therefore, effectively reporting on these goals becomes a challenging task, according to
Kanchana Wickramasinghe in the article, Implementing Green Goals in SDGs in Sri Lanka.
In terms of gender equality, there are many crucial steps Sri Lanka needs to take in order to face
the challenges and successfully reach SDG Goal on; Achieving Gender Equality and Empowering
All Women and Girls. Sunimalee Madurawala explores this issue in Making a Better Place for Her:
Gender Equality for Sustainable Development in Sri Lanka.
These articles are supplemented by an interview with Dr. Nagesh Kumar, Head of UN-ESCAP South
and South-West Asia, in which he highlights key policy priorities for South Asia to achieve these
targets. In the interview, he stresses the world cannot achieve the SDGs without the South Asia
Region.

40

Healthy Oceans, Healthy Planet: Cleaning up Marine Debris from

Natural Disasters

42

Better Water, Sustainable Agriculture and Better Lives for

Sri Lanka

44

Transforming Manpower Employment to Decent Work of

Greater Quality

46
48

World Elders Abuse Awareness Day

IPS News

Like previous issues, the Digest is a compilation of articles written by IPS research staff over the
first half of 2016, covering a range of contemporary and critical national, regional, and international
economic policy issues. These were written and published electronically as well as in print with an
objective of contributing to public debate. The Digest is also interspersed with the Diary of Events of
the Institute, information on IPS Latest Publications, and Fun Facts documenting developments in the
country during this period.

50

Authors

We welcome your feedback and hope you find the Digest interesting!

52

Fast Facts

24

30

Editorial

Janaka Wijayasiri
Research Fellow
janaka@ips.lk

Talking Economics Team

Janaka Wijayasiri
Dishnika Perera
Bilesha Weeraratne
Kithmina Hewage
Charmaine Wijesinghe
Contributing Authors
Athula Senaratne
Bilesha Weeraratne
Chantal Sirisena
Chatura Rodrigo
Janaka Wijayasiri
Kanchana Wickremasinghe
Kithmina Hewage
Nipuni Perera
Pamokya Marambe
Priyanka Jayawardena
Raveen Ekanayake
Samanthi Bandara
Sunimalee Madurawala
Suwendrani Jayaratne
Wimal Nanayakkara
Yolanthika Ellepolla
IPS Photo Credit
Roshan Kaluarachchi
Nalaka Liyanapathirana
Institute of Policy Studies of Sri Lanka
100/20, Independence Avenue
Colombo 07, Sri Lanka
Tel: +94 11 2143100, +94 11 2665068
URL: www.ips.lk
Blog: Talking Economics
Web: www.ips.lk/talkingeconomics
Twitter: www.twitter.com/TalkEconomicsSL
DESIGN/LAYOUT
Shiran Sabar
Copyright and Disclaimer
All material published in the Talking Economics Digest
are copyright of the Institute of Policy Studies of
Sri Lanka (IPS), unless otherwise specified. It cannot be
quoted without due acknowledgement to the IPS
and the author. It cannot be reproduced in whole or
in part, without the written permission of the IPS.
The content, comments and posts of the Talking
Economic Digest and the IPS blog represent the views
of individual authors and do not necessarily represent
the views of the IPS.

September 2016
The Institute of Policy Studies of Sri Lanka (IPS) is an autonomous institution that aims to promote policy-oriented economic research and to strengthen the capacity for medium-term policy
analysis in sri lanka. Its mission is to contribute to the socio-economic development of the country through informed, independent and high quality research that seeks to influence the
policy process. With over two decades of substantial research expertise, IPS has emerged as a regional centre of excellence and the most influential think tank in Sri Lanka.

required to re-accept previous conditions, at the least. In 2014, total UK

trade accounted for nearly 900 bn Euros with EU countries accounting for
53% of UK imports and 48% of UK exports.

Access to Other Markets

Brexit: The
Not-So-United Kingdom
By Suwendrani Jayaratne, Kithmina Hewage, and Chantal Sirisena

On June 23rd 2016, Britain became the first country to vote to leave
the EU, following a tense referendum and fierce campaigning on both
sides. The final result saw the Leave campaign win by a small majority:
51.9% to 48.1% and hours later, the UK Prime Minister David Cameron
announced his resignation from office by October 2016. What follows
will be significant political and economic upheaval. After 59 years of the
blocs history, this is a watershed moment and much uncertainty remains
over what form the break up will take and the implications for not only
the UK, but also its many trading partners, including the rest of Europe.

A Tragic Split
The EU referendum came about as a result of David Camerons
campaign pledge for his second term as Prime Minister. He promised
to reform the European Union and put it to a referendum before the end
of 2017. Voters had been dissatisfied for many years by the continued
transfer of power to the EU, immigration issues and the contribution of
funds to a region that was struggling to emerge from the global financial
crisis. The issue was gaining considerable traction in the UK and led
to the increasing power of the UK Independence Party (UKIP) who won
the most votes in the European elections in May 2014 and ultimately
spearheaded the Leave campaign alongside prominent Conservative
Party MPs such as Boris Johnson and Michael Gove.
In February of this year, Cameron finally struck a deal with the EU
that would change the terms of Britains membership to take effect
EU Referendum Vote by Age Groups

80

25%

90

56%

60
50
40

61%

44%

Percentage of vote

70

little to tackle high immigration and taking back powers from Brussels.
Ultimately, it was too little, too late.

Demographic Divide
The final result saw a split in voting outcomes across the UK with
Scotland (62.0%), Northern Ireland (55.8%) and London (59.9%) voting
overwhelmingly to Remain in the EU. As expected, there was also a
resounding vote from those under 24, voting to Remain by 75% to 25%.
Areas with higher incomes and higher levels of education also had a
greater tendency to vote Remain.

Rules for Exit Article 50

The rules for exit contained in Article 50 of the Treaty of Lisbon are
very brief. According to its provisions, the member state needs to notify
the European Council of its intention to exit the Union and the two parties
will negotiate a withdrawal agreement. Issues pertaining to financial
regulations governing the City of London, trade tariffs, and movement
rights of EU citizens and UK nations are likely to be included in this
agreement. This agreement has to be ratified by the UK Parliament
as well as the European Parliament and any member can veto the
agreement if they do not agree to the conditions.
Treaties governing the Union will cease to be relevant to the UK at a
date agreed in the withdrawal agreement or after two years of notifying
the intent to withdraw. In fact, Jean-Claude Junker, the President of the
European Commission was quite clear that Out is Out and no further
negotiations about its status will take place if the UK decides to leave
through the referendum. Therefore, in order to provide some policy
direction and minimize confusion over the UKs status in the EU, it is
likely that Prime Minister Cameron is asked to trigger Article 50 almost
immediately.

Trade with EU

30

25-49

50-64
Age group

39%

18-24

44%

56%

10

75%

20

65+
Remain

Leave

Source: YouGov exit poll

immediately if Britain voted to Remain in the EU. The deal addressed

many contentious issues including, denying migrants in-work benefits
for four years and an exemption from ever closer union. However,
critics of the deal said that it fell short of what was promised and did

The UKs trading position with the EU will be a matter of much

discussion during negotiations on the withdrawal agreement between
UK and EU officials. Upon leaving, the UK will be required to negotiate
trade agreements with the remaining 27 members of the EU. These
negotiations are likely to be arduous and require considerable political
capital, especially from the UK. The Leave Campaign was particularly
critical of EU regulations and product standard requirements. Therefore,
a new UK-EU trade agreement will have to revisit this issue and if the
UK wishes to continue trading with the EU, it is likely that they will be

In addition to negotiating trade agreements with the EU, the UK will

also be required to negotiate new agreements with other trading
partners on a bilateral basis. In context, only 15% of UK total trade
currently takes place with countries that are not members of the EU
and are not covered by a trade agreement with the EU. The EU has
existing Preferential Trading Agreements (PTAs) with 52 countries, and
is negotiating agreements with another 72 countries. Therefore, the UK
will be required to effectively re-negotiate or start negotiations with 124
countries. During the campaign period, the pro-Brexit movement noted
that the UK could continue to trade under WTO rules without the need
for agreements. However, the UK does not possess its own schedule of
tariffs, commitments on services, and agricultural subsidies at the WTO.
Therefore, while agreements are not required to engage in international
trade, they set out rules and regulations that protect UK companies from
disputes and arbitrary actions from other countries.

It is important to note that Scotland conducted its own independence

referendum in September 2014 and narrowly decided to remain in the
UK. However, political sentiments are likely to have shifted considerably
with the overwhelmingly divergent directions envisioned by the UK and
Scotland. While the direction of these movements is not immediately
clear, they appear to be moving towards demanding independence.
Overall Result
Key:

Majority leave

Majority remain

Tie

Undeclared

British Politics
The political ramifications of the referendum are already taking place
with the announcement by Prime Minister David Cameron that he will
Who would Britain have to negotiate a trade deal with?
Number of countries Britain would need to agree trade deals with to replicate its
EU trading Agreement
0

50

100

150

EU member states

EU member states
plus countries with
which the EU has
free trade agreements

All WTO members

Source: Financial Times

be resigning from his post by October. The Premiers resignation will

catalyze a leadership battle within the Conservative Party with former
Mayor of London Boris Johnson positioned as one of the favourites
to take over. It appears that while David Camerons gamble to hold
the referendum backfired, Boris Johnsons gamble to break rank
with his party leader and support the Leave Campaign is about to
pay dividends. EU officials, in particular, will be keenly following the
leadership battle since the new Prime Minister will be the leading exit
negotiations for the UK.
In addition to the leadership battle, regional politics in the UK have gained
a new lease of life following the referendum as well. The issue of Scottish
Independence from the UK will undoubtedly be revisited after all 32
local authorities in Scotland voted in favour of remaining in the EU. The
likelihood of another movement towards Scottish independence gained
momentum when in response to results, the Scottish First Minister and
leader of the Scottish National Party (SNP) stated that, the people of
Scotland see their future as part of the European Union. The Deputy First
Minister of Northern Ireland Martin McGuiness made a similar statement
by calling for a border poll on uniting Northern Ireland and the Republic
of Ireland.

Sri Lankas Exposure to Brexit

Brexit is likely to slow down the economic activities of both the UK and
other members of the Union. This will impact Sri Lankas exports, given
the countrys dependence on both the UK and EU. EU is currently the
largest export destination of the country with 28.8 per cent of Sri Lankas
total exports going to the EU (US$ 3 bn). UK accounts to 10 per cent of
total exports from Sri Lanka (US$ 1 bn) and 34 per cent of the countrys
total exports to the EU. In terms of imports, UK accounts for just 1.9 per
cent of Sri Lankas total imports and as such Sri Lanka enjoys a trade
surplus with UK. Garments (HS 61 & HS 62) are the main export products
from Sri Lanka to the UK, accounting for about 80 per cent of Sri Lankas
total exports to the UK.
Furthermore, if Sri Lanka is successful in regaining EU GSP Plus, the
country will only be able to use the concessions util UK withdraws from
the EU. Subsequent to that, if Sri Lanka wants preferential access to the
UK market it will have to negotiate a bilateral agreement with the UK,
which is likely to take years given all the negotiations that are likely to
take place in the aftermath of the exit.
Sri Lanka will also be affected through the volatility in the capital
markets. Given that the country is looking at raising capital in the
international market, falling investor confidence may hinder its ability
to raise funds. Investors have fled to the safety of gold and dollar
investments, raising the price of gold to the highest in two years.
Much of the current political and market volatility can be expected to
settle over the coming weeks as Britain and Europe provide a clearer
direction of proceeding with Brexit. The multidimensional nature of the
EU and the significance of the British market are likely to influence the
global political economy. Therefore, Sri Lanka needs to closely watch the
post-Brexit developments both in the UK and EU and accordingly adjust
policies to maximize gains to the country.

Balancing the Scales:

Taming Supermarket Buyer Power

By Raveen Ekanayake & Pamokya Marambe

giving them more market share. Thus buyer power and retail power
are both mutually reinforcing. From a consumer welfare perspective,
reduction in retail prices is seen as positive. However these benefits may
only accrue in the short run. The abuse of buyer power at the detriment
of suppliers would in the long term adversely impact consumers as
ultimately both consumers and suppliers are connected.

Abuse of Buyer Power and Supplier

Abuse of buyer power is financial in nature and/or creates uncertainty
for suppliers. Listing fees to be on a list of suppliers, delisting/threat of
delisting upon refusal to reduce prices or failure to make other payments,
slotting fee to gain access to shelf space, demanding extra or unforeseen
discounts or payments from suppliers and retrospective discounts
on agreed price, changes to quantity and/or specification without
compensation are some of the common forms of abuse by supermarkets.
The rise of retailers own brands, commonly known as private labels or
home brands has exacerbated buyer power abuses. As supermarkets
have started to acquire more market share and presence in the mind of
consumers, they have begun to develop their own brands as a means of
bolstering market share and profits. Thus in addition to their traditional
role as purchasers, they have become direct competitors to their
suppliers, which in effect has led to the increase in abuse of buyer power
in their bid to thwart competition.

Impact on Consumers

The most common form

of regulations imposed
by countries across the
world is the strengthening
of the role of Supplier
Agreements, and the
creation of relevant
institutions by which
the agreements are
enforceable

Accompanied by the rise in per capita incomes and overall improvements

in living standards, supermarkets are increasingly accounting for a growing
share of grocery trade in many developing countries around the world. The
trend is such that, in many of these instances, a large share of these grocery
markets are increasingly being concentrated amongst a handful supermarket
chains, which in effect has led to an imbalance of power in the groceries supply
chains, in favour of supermarkets. The experience from developed countries
in particular suggests that as supermarkets have been able to consolidate
their dominant market position, they are seen restoring to abusing their
buyer power at the detriment of suppliers. Whilst the abuse of buyer power
may not immediately affect consumers, such abuses overtime are bound to
adversely impact consumers. Over the past decade or so, Sri Lanka too, has
witnessed a proliferation of supermarkets chains. With the emergence of
supermarket home brands in Sri Lanka over the last couple of years and the
local industry well positioned to expand in to the future, regulators must guard
against the possibility of buyer power abuses in the interest of both suppliers
and consumers. Against the preceding backdrop, this article discusses how
the abuse of buyer power takes place, their impact on consumers and what
regulators could do to curb such practices, drawing on international best
practices.

Supermarket Buyer Power

Supermarkets buyer power arises from their retailer power: bigger buying
volumes command better buying prices, as such both buyer power and retail
power are mutually reinforcing. As the retail power of supermarkets expands as
a consequence of growing market share, so will their ability to bargain for better
deals from their suppliers. Likewise, as buying prices fall, retail prices also fall

Whilst consumers may benefit from lower prices in the short term, in the
long term, if buying prices are held down to unsustainably low levels over
a long period, there is a risks to the survival of suppliers. As such supply
may dry up leading to higher buying prices, which in consequence would
translate into higher retail prices in the long run
Supermarkets claim that their own brands mean additional choice for
consumers; however, evidence suggests that retailers own brands tend
to drive out branded goods. Limited shelf space means that branded
goods are increasingly replaced by own brands. Furthermore, own
branded goods are more often than not, more profitable for supermarkets
given that their promotion costs can be carried as part of their corporate
overhead, while tight control over their own brand suppliers helps
to reduce direct costs as well. As such for a long term perspective
supermarkets would seek to stock home brands over branded products
and thereby limiting the range of brands consumers can choose from.

Regulators in the United Kingdom and Australia have taken a more active
role against buyer power abuse. The United Kingdom introduced the
Groceries Supply Code of Practice to explicitly address the negative
effects of the power asymmetry between supermarket retailers and
their suppliers. The Code covers areas such as supplier agreements,
promotions and fees, and dispute settlement mechanisms. Australia has
no compulsory regulations in place, but rather has introduced a voluntary
industry code, dedicated to supply practices, enforceable under the
Consumer and Competition Act. The Code requires certain standards of
conduct that cover the life cycle of the relationship between retailers or
wholesalers and suppliers, and aims to deliver more contractual certainty
in trading relations between suppliers and supermarkets, encourage a
sharing of risk and reduce inappropriate use of market power across the
value chain.
The most common form of regulations imposed by countries across the
world is the strengthening of the role of Supplier Agreements, and the
creation of relevant institutions by which the agreements are enforceable
and/or the creation of a dispute settlement mechanism.

Way Forward
The fast growth of supermarkets in Sri Lanka has seen the organized
retail industry concentrated among three main private sector fast-moving
consumer goods (FMCG) retail chains. The three industry leaders account
for approximately 15 per cent of modern retail trade in the country.
With the emergence of home brands and the gradual concentration of
market power in the hands of supermarkets, the scope for buyer power
abuses are set to become more prevalent. In light of the experience in
the developed and other developing countries, there is a risk that as
the industry grows, consumers would be indirectly affected. Whilst Sri
Lanka has already in place a set of regulations outlawing anticompetitive
practices, there are no specific legislation to govern the interaction
between suppliers and retailers. As such, in light of growth potential
of the industry and the consequences it poses on consumer welfare,
regulators must look to incorporate such provisions within the existing
regulatory framework.

What are Regulators Doing?

Few countries around the world have taken measures in various degrees
to counteract the imbalances of buyer power. In South Asia, supermarkets
account for a very low component of its retail market, and as such,
have not required state intervention. Others such as the United States
of America and several other Latin American countries do not possess
explicit regulatory measures dedicated to the industry, and instead have
integrated relevant measures to curb anticompetitive practices on both
demand and supply-side of supermarkets within existing antitrust laws.
The Robinson Patman Act in the USA, for example, regulates vertical
relations between suppliers and retailers and protects small suppliers
by prohibiting the retailers from charging different fees, requiring
different services, or requesting discounts from the producers, if that
differentiation has negative effects on the competition.

ARTICLE TO MARK WORLD CONSUMER RIGHTS DAY

15TH MARCH 2016

By Raveen Ekanayake

Connectivity within South Asia

Despite clear benefits of enhanced air connectivity, many countries and
regions of the world are plagued by poor air connectivity. Outdated rules
and regulations often prevent fit, willing and able airlines from fully serving
passengers and shippers, severely inhibiting air connectivity in these regions.
South Asia is one such region; its countries are better connected with
countries outside the region, than within, mainly due to regulatory barriers on
airline operations. In many instances, there is a lack of direct capital to capital
air connectivity (e.g. Sri Lanka Nepal, Sri Lanka Bhutan, Afghanistan- Sri
Lanka, and Afghanistan Bangladesh etc.). Traveling to these destinations
requires a transit either via a Middle Eastern or a Southeast Asian destination,
leading to additional travel time and costs. The limited regional air connectivity
is widely seen as a critical barrier stifling the growth of intra-regional trade
and investment.

With the end of the war in Sri Lanka, there has seen a noticeable uptake
in tourist arrivals from the West. However, tourist arrivals from India still
play a crucial role. The peak tourist season for European tourists run from
September to January during winter months in the Western Hemisphere,
whereas the peak season for Indian tourist runs
Table 1: Route Map & Frequency between Sri Lanka and India per week, by Carrier as at November 2015
between March to April and June to August during
school holidays and the summer season in India.
Sri Lankan
Route/Airline
Spice Jet Jet Airways Mihin Air India Air India Total
Airlines
Lanka Express
As such tourist arrivals from India support the
Chennai Colombo
28
7
7
42
local tourism industry during the lean seasons
Bangalore Colombo
11
11
between February and August each year.

enhanced (from an equivalent of 27 weekly frequencies to 49 weekly

frequencies per designated airline for metropolitan destinations and
unlimited weekly frequencies to secondary destinations in India).
Frequencies were further enhanced in 2011 to 112 weekly frequencies.

Delhi Colombo

14

Mumbai Colombo

14

14

Cochin Colombo

14
5

Tiruchirapalli Colombo

14

Trivandrum - Colombo

12
7

102

12

14

12

154

In addition to pleasure travelers, there has also

been an increase in business travelers between
the two countries. This has been a notable
feature in the wake of the India-Lanka Free Trade
Agreement being operationalized in 2000, an
indication that air connectivity is facilitating more
business to business interactions between the
two countries.

Closer inspection of the composition of Sri

Lankan tourists arrivals to India also suggests
that in addition to pleasure tourists and business travelers, there has
been a notable growth of Sri Lankans travelling to India for medical
purposes as well as for education, which has been facilitated by better
air connectivity; an indication that air connectivity is also facilitating the
trade in services.

Source: Compiled from data obtained from respective airline websites *Seasonal Flights

More Frequencies, More Destination, More Airlines

As noted in the table below, liberalization has led to an overall

improvement in connectivity in terms of frequencies and routes between
the two countries. Whilst a number of private Indian airlines have started
operating between the two countries, the two airlines in
Figure 1: Passenger Traffic Movements between India and Sri Lanka, 2000 - 2014
Sri Lanka, (i.e. Sri Lankan and Mihin Lanka), account for
1800000
the lions share (74%) of the market. In the immediate
aftermath of liberalization, a downward revision in
1600000
airfares was observed. However in the absence of
1400000
sufficient competition on these routes, air fares have
1200000
gradually crept up to pre-liberalization levels.

Facilitating the Movement of People

Amongst the South Asian countries, Sri Lanka and India are by far the best
connected (See Table 1) and this could be linked to the extensive liberalization
of the air services regulations between the two countries, which took place in
2003. The most pertinent liberalizations in this respect were in the areas of
pricing, competition, capacity and new routes. Market forces were allowed to
determine prices as opposed to being set by the two governments. Following
the deregulation of the domestic aviation market in India, private Indian
airlines were allowed to operate between the two countries and there was
a shift in regulating capacity from a regime based on the number of weekly
seats, to one based on the number of weekly frequencies. In addition to the
opening up of a number of metropolitan (Mumbai, Delhi) (7) and secondary
destinations (18) in India, frequencies (capacity) to these destinations were

The benefits of liberalization are clear, as noted in

Figure 1 below, passenger traffic between the two
countries more than doubled in the immediate wake
of liberalization in 2003 and has since increased. The
bulk of the new traffic being generated is a result of
the relaxation of capacity constraints on metropolitan
destinations.

Liberalization of Air Services between India and Sri

Lanka

14

Kolkata - Colombo
Total

14

Gaya Colombo*
Madurai Colombo

21
28

Varanasi Colombo*

No. of Passengers

Opening Up
the Skies:
Benefits of
Air Services
Liberalization
What we can
learn from the
India-Sri Lanka
Experience

Air connectivity plays a pivotal role in unlocking a countrys long term

economic growth potential, and has been recognized as doing so over the
recent decades. Air connectivity is an indicator of a networks concentration
and ability to move passengers and goods from a point of origin to another
destination with ease and efficiency. The level of air connectivity a country
possesses is believed to have a significant impact on its economic growth.
In addition to the direct and indirect contribution of the aviation sector to
aggregate output, enhanced air connectivity leads to many spin off impacts
on the wider economy. It enables business travelers to meet new customers
and suppliers in order to expand their operations on a global scale. It is also
considered a fundamental prerequisite in unleashing a countrys/regions
tourism potential.

1000000

To

800000

To

600000

Fr

400000
200000
0

Source: Complied using published data from Annual Statistical Reports (Various Years), The Directorate General of
Civil Aviation, The Government of India

The improvement in air connectivity has facilitated the movement of

people to forge trade, investment, and cultural linkages between the
two countries. The tourism industry in Sri Lanka in particular has been
a major beneficiary. The adverse security situation, which prevailed up
to 2003, saw tourist arrivals from Sri Lankas traditional sources in the
West dry up. India with its growing middle class, close geographical
proximity and its people being less sensitive to the adverse security
situation in Sri Lanka, was seen as the ideal market to tap. Improved air
connectivity with India ensured that the void left by the hollowing out of
Western tourists filled and in the process ensuring that the hotel sector in
particular was kept afloat during these turbulent times. During the early
2000s, India in terms of volume was the 3rd top source of tourist arrivals
to Sri Lanka after the United Kingdom and Germany. By 2004, India had
jumped to the 2nd place and by 2005, India become the top source of
tourists to Sri Lanka, surpassing the United Kingdom by as much as 20%
in terms of tourist numbers. Since then India stands as the top source of
tourist arrivals to the island.

The Way Forward

As highlighted above, the liberalization of air services between Sri
Lanka and India has brought about a number of tangible benefits to
the Sri Lankan economy by way of facilitating the movement of people
and business between the two countries. Despite the improvements in
connectivity, further scope for improvements in air services between
the two countries exists. The lack of competition could be attributed to
the prevalence of high airfares. In this regard, both countries must seek
to enhance competition amongst the airlines operating on the route to
ensure that air travel is made much more affordable.
Finally, South Asia is a fast growing region with a growing middle class
and Sri Lanka must look at undertaking similar liberalization with other
South Asian member states to forge deeper trade, investment and
cultural linkages in the interest of further unleashing the potential of the
domestic economy.

Re-orientation of External
Trade Towards Global
Production Networks:
An Urgent Need for Sri Lanka

manufacturing as it links domestic manufacturing to

dynamic global industries. Thus, participation in GPS
also has the potential to yield spillover effects through
the transfer of technology and managerial knowhow, skill development and atmosphere creation
effect. Thirdly, as GPS trade accounts for a larger and
increasing share of world manufacturing trade, there
can be considerable gains from economies of scale
and scope that arise in larger markets.

How Does Sri Lanka Fit into GPSs?

By Kithmina Hewage and Raveen Ekanayake

Innovations in telecommunications and transportation have shrunk the distances that once
separated nations through enhanced speed, efficiency and economies of coordination,
allowing firms to geographically disperse production activities in line with increased
specialization. Consequently, international trade and investment patterns have undergone
significant change in recent decades, with the reorganization of production processes.
Rather than move through traditional mechanisms of industrialization, developing
countries are now afforded the opportunity to take part in manufacturing in high value
added production. Sri Lanka however has failed to reorient itself to these global dynamics
and continues to focus on traditional means of industrialization. This article explores the
opportunities and challenges faced by Sri Lanka in successfully adapting to this new global
environment.

What is Global Production Sharing?

as part of the outward-oriented development strategy

for the following reasons. Firstly, GPS opens up
opportunities for countries to participate in a finer
international division of labour, to specialize in
different slices (tasks) of the production process in
line with their relative cost advantage in a labour
abundant economy; assembly activities within global
production networks tend to be relatively more
labour intensive (and hence pro poor) compared
to conventional manufacturing (production from
start to finish in just one country) of the given final
product. Successful integration of the manufacturing
sector into production networks has played a key role
in employment generation and poverty reduction in
China and other high-performing East Asian countries.

Global Production Sharing (GPS), the cross-border dispersion of production processes within
vertically integrated global industries, has been a defining facet of economic globalization
Secondly, participation in GPS is likely to have a
over the past few decades. This process of international division of labour opens up
favourable atmosphere creation effect on domestic
avenues for countries to specialize in different slices (tasks) of the production process in
line with their relative cost advantages as opposed to the
Table 1: Share of GPN products in manufacturing exports, 2012-13 (%)
need for engaging in the entire production processes of
particular final good from start to finish.
The expansion of GPS trade has spread to encompass
developing countries and includes industries such as
sports goods, footwear, electronics, electrical goods,
automobiles, aerospace and medical devices to name a
few. As could be observed from Table 1 below, GPS trade
accounts for close tohalf of world manufacturing trade
and over two-thirds of manufacturing exports from China
and other high-performing countries in East Asia.
The phenomenon of GPS deserves particular attention

10

Sri Lanka
India
Indonesia
Malaysia
Thailand
Viet Nam
South Asia
Developing Countries
World
Source: UN Comtrade (2016)

Table 2: GPN products in manufacturing exports from Sri Lanka

Parts and
Components

Final Assembly

Total

6.2
11.6
20.1
63.5
46.9
20.1
11.2
34.1
29.2

---11.3
13.2
9.8
22.8
10.3
11.2
28.0
17.9

6.2
22.9
33.3
73.2
69.7
30.5
22.5
62.0
47.1

Total Manufacturing
(US$ million)

Parts and Components

US$ million

Share (%)

1990

896.8

35.3

3.9

1995

2121.2

89.0

4.2

2000

35958.9

246.8

6.9

2005

41968.2

307.5

7.3

2010

51367.9

346.4

6.7

2014

69708.2

472.1

6.8

Source: UN Comtrade (2016)

As a low-middle income nation, Sri Lanka faces a
crucial dilemma regarding its position in international
if the outlet is overburdened. In fact, the currently unused Mattala
trade and economic growth. On one hand, Sri Lanka finds it difficult to
International Airport (MIA) provides a viable alternative. Rather than
compete against low-cost labour in countries such as Bangladesh and
continue to pursue a failed strategy in promoting MIA as a passenger
Vietnam. On the other hand, the country is not sufficiently developed to
destination, the airport can be used almost exclusively for transport
compete against the upper-strata of middle-income countries such as
of cargo, if the necessary infrastructure (e.g., industrial parks) can be
Malaysia, in producing technologically advanced services. To its credit,
established in its vicinity. A combination of relevant logistical support
however, Sri Lanka benefits from locational advantages as a transitory
and access to efficient transport infrastructure will incentivise firms to
hub between Europe and the rest of Asia, as well as close access to the
consider Sri Lanka as a preferred investment destination.
rapidly expanding Indian market. In this regard, trading agreements with
expanding markets that reflect modern trends in international trade and
address the elimination of non-tariff barriers with trading partners is
Property Rights Protection
crucial. The availability of such agreements can be used to successfully
leverage investors with an opportunity to access large and growing
In addition to logistical and structural factors, investors are particularly
markets with immense potential.
concerned by the economic climate of countries. Intellectual property
protections and mechanisms associated with enforcing these protections
Firms are keen to invest in locations that possess trainable unskilled
are especially important for global production networks. The global
labour, and middle-level (supervisory) technical manpower. With very
production process is such that generally design and innovation occurs
high literacy rates, across genders, Sri Lanka possesses a labour force
in developed nations while manufacture and assembly take place in
that complements these requirements adequately. Moreover, with a
developing economies. Therefore, firms require stringent measures
relatively small labour force, the country is unlikely to have the resources
that protect their respective intellectual property in any country where
to establish fully-fledged manufacturing to a scale that can replicate
manufacturing takes place. Sri Lanka is ranked 161st in Enforcing
the industrialization process of certain other countries. A focus on
Contracts on the Doing Business Index. If Sri Lanka is to establish itself
specialising in parts and components manufacture, therefore, allows
as a preferred destination for foreign investment, be it in parts and
the economy to make more realistic changes and simultaneously gain
components trade or otherwise, urgent attention is required to reform the
through international trade.
relevant judicial processes and strengthen its intellectual property rights
regime.

What Needs To Be Done?

A pertinent factor in determining Sri Lankas successful participation

in GPSs is its service link costs the costs involved in coordinating
production tasks across borders. The service link costs of a country
depend on a plethora of factors including infrastructure and trade
logistics, property rights protection (including enforcement of contracts),
political stability and policy certainty, and the liberalization of trade and
investment regimes. These challenges are reflected through current
levels of manufacturing in Sri Lanka. GPS trade in the country continues
to be dependent on a handful of medium sized investments that were
setup during the 1990s. As Table 2 demonstrates, the manufacture of
parts and components is significantly low compared to other countries
and the countrys share does not appear to be increasing adequately in
order to keep pace with the rest of the world.

Connectivity
Participating in GPSs depend on the ability of firms to transfer goods
rapidly across borders and therefore requires efficient access from the
manufacturing plant to the port, often an airport rather than seaport.
Currently, air-cargo flows almost exclusively through the Bandaranaike
International Airport and capacity constraints may create bottlenecks

Policy Outlook
One of the fundamental features in creating a conducive investment
environment is policy certainty and stability. The conclusion of the
three-decade long conflict should have in theory ushered in significant
amounts of foreign direct investment into the country. However, barring
foreign investments geared towards state sponsored infrastructure
projects; foreign investment flows into the country have been weak. One
of the main factors deterring investments is the lack of policy certainty
in Sri Lanka. Successive governments in recent years have contributed
to this uncertainty through the implementation of ad-hoc policies such
as the Land (Restrictions on Alienation) Act in 2014 and the imposition of
retrospective taxes in 2015. The country has already failed to fully realize
the investment potential of a post-conflict economy and continued policy
uncertainty will only exacerbate the situation.
Sri Lankas complicated tariff structure, which also includes a plethora of
para-tariffs, undermines the potential of integrating into GPSs. Given how
GPSs are organized, parts and components may cross multiple borders,
multiple times and the absence of a uniform tariff structure increases
the costs of production as even a minor tariff accumulates and erodes
competitiveness.

11

financing, location choice, property, recruitment, training, and postinvestment facilitation all play a key role in investment facilitation.

Investment Facilitation in Sri Lanka: What

More Can Be Done?
The Board of Investment (BOI) of Sri Lanka is the central facilitation point
for investors seeking to invest in Sri Lanka. IPS selectively interviewed
a number of BOI facilitated investors to gain in-depth insights into how
current services can be improved, in view of attracting more investors
and improving post-investment services. The following areas for
development were identified based on their feedback and should be
considered given that the current Government has placed a significant
emphasis on driving FDI and aims to attract FDI amounting to US $ 5
billion within the next three years.

Greater Authority to Mandate Agencies

Limited power and influence of the BOI in mandating the relevant
agencies has made the BOI more of an intermediary than a facilitator.
Investors are often referred to the relevant ministries/agencies and the
investors have to get the relevant approvals from these authorities. More
clout over agencies to negotiate on behalf of investors would make
services of the BOI more attractive.

Attracting
Foreign Direct
Investment
to Sri Lanka:
The Need
for Proactive
Investor
Facilitation

Today almost all countries around the world, in their bid to create jobs and sustain
economic growth, compete fiercely to attract foreign investment. In addition to
liberalizing trade and investment policies, opening up sectors to foreign investors
and undertaking reforms to create a more business friendly environment, countries
are also seen to be undertaking proactive investment promotion measures.
Investment promotion and facilitation are also considered to be vital pull factors
to attract investment, though not a substitute for having the basics in place. Over
the past two decades or so dedicated Investment Promotion Agencies (IPAs)
have emerged at both national and sub-national levels to engage in investment
promotion. Investment promotion covers a wealth of services, including investor
outreach, facilitation, after care, and strategy.

Investment Facilitation Best Practices

Investment Facilitation is widely seen as the most basic and cost effective activity
supporting foreign investment promotion. Through investment facilitation, IPAs
provide support to prospective investors during the investors location selection and
decision-making processes. Good facilitation can influence an investors location
choice. By providing fast, up-to-date, and accurate information about its location,
an IPA can encourage potential investors to consider lesser-known investment
destinations and reduce their perceptions of risk. Delivering consistently highquality facilitation helps to make the location more competitive.

If designed correctly, IPAs can deliver substantial savings in time and costs for
investors by providing seamless, integrated and easily accessible points of contact.
Many host governments seek to alleviate the administrative burden on potential
investors through a one-stop shop, which provides information on the necessary
By Suwendrani Jayaratne steps to start a business in a country in effect a tourist office for investors.
and Raveen Ekanayake In addition to helping investors navigate administrative barriers, once investors
are seriously interested in investing in a country, the process of country visits,
negotiations, advice, legal and regulatory matters, meeting existing investors,

12

To start the company I had to visit only one location and

handover the documents. In 2 weeks I got the temporary
approval to run the business and after 6 months received
the document to conduct the business on a permanent basis.
The submission of documents was to a regional office and
I didnt have to make a single visit to the capital, which was
400kms away to get any approvals. Everything was handled
internally. Investor recalling his experience in another developing country

Negotiating on Behalf of BOI Companies

Policy stability is crucial for investors as predictability and clarity of
policies translate into trust for many. The need for the BOI to negotiate
on behalf of the existing investors with the government especially
when there are changes to policies affecting the BOI companies, their
investments and decision-making was highlighted, as ad-hoc policy
changes can be counter-productive.

Its alright for governments to set a minimum wage in a

country. This is practiced in a lot of countries. But its not
reasonable to ask companies to increase wages by an x
amount as this depends on a companys financial situation.
This puts companies in a precarious situation with the
workers as well. In these situations the BOI should be able
to intervene and advice the government. - Investor in Sri Lanka

Availability of Comprehensive Information

The ability of the relevant agencies to provide detailed and
comprehensive investment-related information in a short time span was
identified to be crucial for potential investors. These information needs

are not limited to common macro-economic and other data which are
publicly available, but more importantly on project-specific information
such as the availability of raw material, availability of related technology,
and information on possible joint-venture partnerships. Furthermore,
having both the promotional material as well as the supporting
documents (i.e., brochures on environment clearance, etc.) in key foreign
languages (i.e., Chinese, Japanese) would be beneficial. This applies
to the BOI website content as well, which is currently available only
in English. The timely publication of Annual Reports would be another
source of rich information for potential investors.

Supplying Potential Workers to BOI

Companies
The BOI has a contractual obligation of providing employees to some of
the companies. However, the BOI job bank is currently not functioning
and as a result companies have resorted to alternative sources to hire
workers. According to companies, hiring workers is a challenge due to
the dearth of workers, new trends in youth employment (i.e., preference
for temporary jobs compared to permanent jobs) and preference for
desk jobs. The need to restart the BOI job bank as well as the necessity
of providing more incentives to attract workers to the zones were
underlined as key in attracting more investors.

Conducting Opinion Surveys and Creating

Platforms for Discussion
Consistent feedback on services provided by the BOI and relevant
agencies would provide better insights into service areas that can be
improved. At least an annual company survey on the BOI services and
areas for development would be beneficial. While the operations staff of
companies maintain communication with BOI officials especially in the
zones in their day-to-day operations, the platform for communication
between the managerial staff and the BOI was identified to be minimum
and one that was necessary.

Encouraging Consortiums of Investors for

Larger Projects
There was a perception among some interviewed companies, that in
the past, some countries were overlooked due to larger investments
offered by others. In the long-term, it would be important for Sri Lanka
to consider the geo-politics in the region and offer large projects to a
consortium of investors from different countries, where possible.

Other Areas for Development

The need for a well-researched promotional plan, identifying unique
methods of attracting investors, having up-to-date and advanced data
bases, and continuous and pro-active follow-up with investors are some
of the other areas that Sri Lankas investment promotional agency can
focus on. Furthermore, capacity building of officials including proficiency
in key languages where business meetings can be carried out with
little help from translators, and keeping abreast of investor facilitation
services offered by competitor countries would help the agency be more
competitive in the services it offers.

13

Figure 1: Trade Diversion Effect of the TPP on Sri Lanka

11,295,549,000

Will TPP Lead

to Trade
Diversion
from Sri Lanka?

By Janaka Wijayasiri and Nipuni Perera

Canada:
2.26 mn

$3,781,549,000
Sri Lankas exports to world
USA
32.2 mn

Mexico
3.52 mn
Peru
0.08 mn
Chile
0.2 mn

Sri Lankas exports to TPP-12

Japan
0.68 mn

Vietnam
0.15 mn
Singapore
0.02 mn
Malaysia
0.36 mn

Trade diversion due to TPP

Australia
0.16 mn

$39,800,000
NZ 0.08 mn

US$39.8 mn
Exports diverted
from Sri Lanka due to TPP

Top Product Losses

in USA

Textiles & apparel

Rubber & articles

Note: Brunei not shown due to negligible export loss in that market. Source: IPS

After more than five years of negotiations behind closed doors, the
Trans-Pacific Partnership (TPP) Agreement reached a conclusion on 5th
October, 2015 in Atlanta, US and was signed on 4th February 2016 in
Auckland, New Zealand. The completion of this deal was a landmark
given that it is the first mega trade agreement of its kind. TPP brings
together 12 countries, both developed and developing nations in the
Asia-Pacific region including Australia, Brunei, Canada, Chile, Japan,
Malaysia, Mexico, New Zealand, Peru, Singapore, US, and Vietnam. The
region accounts for more than one-third of worlds GDP, and one quarter
of world trade. Since the signing Agreement in February 2016, the TPP
will now undergo a two year ratification process in all the 12 countries.
The size and scope of this trade deal makes it a pertinent trade policy
issue for both members and non-members like Sri Lanka. TPP is
anticipated to transform current global trade patterns and affect all
countries, particularly those that rely on the US as an export market
and share a similar production/export structure to member countries.
The potential for trade diversion that is, diverting trade away from a
more efficient supplier outside a trading block towards a less efficient
supplier within the block - is a pressing concern in the rapidly evolving
international trade and investment environment. In November 2015,
Prime Minister, Ranil Wickremesinghe stressed the need for an urgent
review of the TPP in his Economic Policy Statement:
When reviewing the garment sector, we need to carefully address the
Trans-Pacific Partnership Agreement under which tax free garment export
opportunities have been given to countries such as Vietnam. This has
enabled them to engage in competitive markets and supply the American
and Japanese markets at low rates. This may also affect exports from Sri
Lanka in the future. TPP must therefore be reviewed further.

14

Magnitude of Trade Diversion

Duty free market access provided under the Agreement for member
countries would result in cheaper prices for goods traded among TPP
countries. This can in turn have a significant impact on trade flows of
countries that are outside the TPP including Sri Lanka, as trade would
be diverted towards TPP countries where buyers can benefit from
purchasing cheaper goods.
Preliminary estimates by the Institute of Policy Studies of Sri Lanka (IPS)
indicate that the level of trade diversion/market loss for Sri Lanka due to
exclusion from the TPP is about US$ 39.8 million (Figure 1). This amount
is negligible in the context of Sri Lankas total exports of US$ 11 billion
in 2014. A country-wise analysis shows that the biggest loss in exports
for Sri Lanka would be in the USA (81 per cent). To a much lesser extent,
export loss will also take place in Mexico (8.8 per cent), Canada (5.7 per
cent) and Japan (1.7 per cent).
Given that the majority of Sri Lankas loss in exports owing to TPP would
occur in the US market, the biggest loss in exports include textiles and
apparel: product codes HS 61 and 62 (Articles of apparel, accessories,
knit or crochet and not knit crochet), which account for around 90 per
cent of total export loss in USA. HS 40 (Rubber and articles thereof) will
also experience losses, albeit to a lesser extent. Much of the trade loss
will be diverted to Vietnam, which is a signatory to the Agreement and
competes with Sri Lanka in the US market in a similar range of products.
About one-fourth of Sri Lankas exports are similar to Vietnams exports
to the USA, and in these products Vietnam is almost twice as competitive
to that of Sri Lanka. This is not surprising, as Vietnam has been touted

as the biggest winner of TPP, and it is expected to boost exports to the

U.Salready Vietnams largest export market.
Nevertheless, the overall loss of earnings in exports of textiles and
apparel to the US of approximately US$ 24 million is very low relative
to current total exports earnings of US$ 4.9 billion in 2014. However,
trade diversion effect might be lower than estimated due longer tariff
liberalization period, safeguards, and restrictive rules of origin, etc.,
specified under the Agreement to protect import sensitive products like
textiles and apparel, which would affect the utilization of the Agreement
by member countries. For example, TPP requires a yarn forward rule of
origin. It means that all stages of production, starting with yarn spinning,
moving to fabric formation and the final garment assembly, must be
done using yarns and fabrics from TPP countries. The yarn forward
rule is adopted to prevent third party countries outside the agreement
from benefiting from TPP tariff reductions as well as to safeguard the
textile and apparel industries of some countries such as the US. Under
the yarn forward rule, the ability of countries such as Vietnam to export
clothing to TPP made from Chinese yarns and fabrics for instance will be
constrained. In the short to medium run, these factors will mitigate the
trade diversion risks, by limiting the immediate markets access of the
USA by Vietnam under the Agreement.

Feasibility Study
While the magnitude of loss from trade diversion due to TPP would be
negligible for Sri Lanka in the event of TPP coming into force, which
is most likely to happen after 2018, the TPP is a living agreement and
membership will be open to other countries including those in the Asia

Pacific Economic Forum (APEC) at a future date. Countries such as

Korea, Taiwan, the Philippines, Colombia, Thailand, Indonesia, etc., have
expressed an interest in joining the mega regional grouping. Therefore,
the risks of trade loss/diversion are likely to increase with time given that
Sri Lanka is also not part of the other mega-regional trade agreements
under negotiations.
Sri Lanka too has cast its eyes on TPP and is currently conducting a
feasibility study to determine the pros/cons of the Agreement. The
country needs to weigh-in the costs and benefits of the Agreement in
light of its current position and development needs. While there are likely
to be great benefits involved in joining the Agreement, there are a lot
of political and economic investments that will have to be made by the
country to be ready to enter into such an Agreement at a later date.
TPP is a comprehensive and high-standard agreement going beyond
enhancing trade in goods and current multilateral commitments. In
fact, only 6 of the 30 chapters in the Agreement covers trade in good
issues while the majority of the chapters deal with e-commerce,
government procurement, competition policy, state-owned enterprises,
intellectual property, labour and environmental protection, etc. Some of
these aspiring countries will have trouble in meeting TPPs ambitious
requirements, due to their protectionist stance toward agriculture and
industry.
Meanwhile, Sri Lanka should strive to improve the competitiveness of its
own exports by creating competitive infrastructure services, promoting
export oriented foreign investment, facilitating goods across borders
effectively, addressing export market issues through trade agreements,
and improving access to inputs of materials, capital, and technology for
the export sector.

15

TFA has provided the country and its relevant

stakeholders a renewed interest in trade facilitation, vital
for developing trade and investment in the country

Article to Mark World Customs Day 2016 -26th January

The category A commitments for Sri Lanka a set of provisions that need to
be implemented on the date the Agreement comes into force - were notified
to the WTO on the 31st July 2014, while other category commitments (those
which can be implemented after a transition period following entry into
force and with assistance and capacity building) have also been identified.
Subsequent to a validation of the self-assessment process of the relevant
commitments by the World Bank in 2015, Sri Lankas category A commitments
will be as listed in Table 2. Having received the approval of the cabinet, Sri
Lanka is now ready for the ratification of the Agreement.
Table 2: National Trade Facilitation Committee Members

Provision
7.2
9

This blog is written to commemorate World Customs Day,

the reforms and preparations undertaken by Sri Lanka to ratify
the WTO Trade Facilitation Agreement and some key initiatives

2016: Ratifying the

Trade Facilitation Agreement and
the Year of Digital Customs

slogan, Digital Customs: Progressive Engagement.

By Suwendrani Jayaratne
the participation of the main border agencies, private sector and WTO
experts to identify the countrys commitments under different categories
and to identify the time, technical assistance and capacity building needs
of the country (Based on a presentation titled WTO-TFA Sequencing
Reforms and Preparing up for Ratification by S. Rajendran, 2015).
A National Trade Facilitation Committee with 13 members of key border
agencies and private sector representation has now been formalized,
filling a long-felt lacuna (see Table 1). The Committee is chaired by
the Director General-Customs and co-chaired by the Director GeneralCommerce.

Sri Lanka is in the process of ratifying the Agreement, with Sri Lanka
Customs (SLC) taking the lead in it. A national need assessment
workshop on the WTO-TFA was conducted in early 2014 in Colombo with

16

10.6

Use of Customs Brokers

10.7

Common Border Procedures and Uniform

10.8

Rejected Goods

10.9

Temporary Admission of Goods and Inward

and Outward Processing

11

Freedom of Transit

TFA has provided the country and its relevant stakeholders including the border
agencies, a renewed interest in trade facilitation, which is vital in developing
trade and investment in the country. It sets out a list of trade facilitation
measures that can be implemented at a relatively low cost and technical
know-how, as well as areas which can be developed with the support of donor
countries, international institutions as well as the private sector. The SLC has
already initiated several programmes including key projects which are in line
with this years theme.

The Year of Digital Customs

Use of improved systems and technologies will transform

the Customs landscape by improved compliance,
enhanced coordination, increased transparency and
enhanced detection of irregularities

Table 1: National Trade Facilitation Committee Members

Director General Sri Lanka Customs

Director General Department of Commerce
Director General - Trade and Investment Policy
Director General - Health Services
Director General - Agriculture
Director General - Sri Lanka Standards Institute
Controller General - Import & Export Control
Controller - Exchange Control
Chairman - Sri Lanka Ports Authority

The Status of Sri lanka in Ratifying the Agreement

Movement of Goods Intended for Import

Documentation Requirements

undertaken by the Sri Lanka Customs in line with this years

TFA is unique compared to other WTO agreements due to the flexibility

it offers to the developing nations and LDCs in terms of implementation.
While implementation is not mandatory until the necessary capacity is
acquired, countries are able to assess for themselves the current status
of trade facilitation, when they will implement each provision in the
agreement and the type of assistance they need to implement them. TFA
comes into force once two-thirds of the WTO members (108 members)
complete the domestic process and ratify the agreement with the WTO.
Mali is the latest country to ratify, becoming the 68th country to do
so. Countries that have ratified the TFA so far include a diverse group
including 10 African nations, the EU, USA, China, Japan, Vietnam and
from the South Asian region, Pakistan.

While the efforts of agencies should be acknowledged, ambitious

projects such as the Single Window require the full commitment
of the government, the border agencies and other relevant
stakeholders. The support of a range of stakeholders will be needed
to push the initiative forward by ensuring that complementary
systems and policies are in place (i.e. required legal framework,
public key infrastructure, etc). As highlighted by the WCO, the use
of improved systems and technologies will transform the Customs
landscape by improved compliance, enhanced coordination,
increased transparency and enhanced detection of irregularities,
the benefits of which will trickle down to the trading community,
consumers and to the nation as a whole.

under Customs Control

which falls on January 26th 2016. The focus of this article is

WTO Members reached consensus on the Trade Facilitation Agreement

(TFA) in December 2013, marking a significant milestone in multilateral
trade negotiations, which has been in deadlock for over a decade. This
Agreement contains provisions for expediting the movement, release and
clearance of goods across the borders; sets out measures for effective
cooperation between customs and other authorities on trade facilitation
and compliance with customs requirements; and includes provisions
for technical assistance and capacity building of developing and least
developed countries (LDCs).

Title
Electronic Payment

SLC is also now using social media such as Facebook to facilitate

trade. The SLC will use the page as a platform for customs alerts,
to share documentation among traders, shipping lines, freight
forwarders and clearing agents, and also as a platform for the trading
community to share their knowledge and ideas.

Chairman Airport and Aviation Authority

Secretary General - Ceylon Chamber of Commerce
Director General National Intellectual Property Office
Chairman Export Development Board

The World Customs Organization has dedicated this year to the digitalization
of Customs process with digital customs referring to any automated or
electronic activity that contributes to the effectiveness, efficiency, and
coordination of Customs activities, such as automated Customs clearance
systems, the Single Window concept, electronic exchange of information,
websites to communicate information and promote transparency, and the use
of smart phones.
SLC too has embarked on several projects, including the initiation of the
Single Window where the objective is to bring all trade related and border
agencies into one platform, leading to a state of paperless trade. According to
a presentation made by the SLC recently, it has been successful in connecting
so far, about 15 agencies to a central system. In the second phase the SLC
plans on increasing the number of agencies connected, and on simplifying
processes and procedures, conducting and reviewing data harmonization and
standardization among others.

17

Milestones along the Journey

Chinas enthusiasm and active promotion of OBOR is reflected in the
recent upturn of trade and economic ties between China and partner
countries. Chinas trade with countries along the Maritime Silk Road
has been growing at an average of 18.2 per cent annually over the past
decade, and accounts for 20 per cent of the countrys total foreign trade
volume. Chinese direct investments in OBOR countries increased from
US$ 240 million to US$ 9.27 billion during the past decade, representing
annual growth of 44 per cent.
So far, a number of projects have been embarked as part of the OBOR
initiative. For example, the first cargo train from China to Iran, known as
the Silk Road Train, arrived in Teheran in February 2016 after a 14 day
journey travelling a distance of 10,399 kilometers through Kazakhstan
and Turkmenistan from Chinas Eastern Zhejiang province.
Chinas efforts to restore the ancient silk route in South Asia include the
US$ 46 billion China-Pakistan Economic Corridor (CPEC) linking Kashgar
to Gwadar; Bangladesh-China, India, Myanmar Economic Corridor (BCIM)
and the US$ 1.5 billion Colombo Port City Project in Sri Lanka, amongst
others.

Chinas One Belt One Road

Initiative: Implications for Sri Lanka
By Nipuni Perera

Trade along the Ancient Silk Road can be traced back to historical times
when land and sea routes between China and Europe were vibrant
with the movement of a range of goods including silk, spices, precious
stones, etc., as well as cultural exchanges. Sri Lanka too played an active
role in the ancient Silk route of the ocean. Situated strategically in the
middle of the ancient Silk route of the ocean between East and West, Sri
Lanka functioned as an entreport of trade for exchanging commodities.
Archaeological excavations in many parts of Sri Lanka have unearthed
large hordes of Roman and Chinese coins, which indicate that merchants
from West and East met in Sri Lanka and exchanged wares.
Potential trade and economic gains from greater connectivity along the
Silk Road have resulted in various efforts to revive the ancient Silk Road.
Efforts of UK and France to connect South Asia, South East Asia, and
Far East during colonial times and more recently, the Asian Highway
proposed by Economic and Social Commission for Asia and the Pacific
(ESCAP) are some initiatives taken to develop intra-Asian and Euro-Asian
connectivity. More recently, China aims to reclaim the past glory of the
ancient Silk Road through its own One Belt One Road initiative and it is
one of the boldest initiatives taken by China since becoming the second
largest economy in the world

Reinventing the Past Glory: One Belt One Road

(OBOR) Initiative
OBOR initiative was first announced during Chinese President, Xi
Jinpings visit to Central Asia and Southeast Asia in 2013. Subsequently,
the document Vision and Actions on Jointly Building Silk Road Economic
Belt and 21st-Century Maritime Silk Road, released in March 2015
outlined that OBOR and its aims to connect Asian, European and African

18

continents and strengthen partnerships among the countries along the

Belt and Road towards promoting diversified, independent, balanced, and
sustainable development.
OBOR includes both land and sea routes. The land route called The Silk
Road Economic Belt focuses on bringing together China, Central Asia,
Russia, and Europe (the Baltic). This includes linking China with the
Persian Gulf and the Mediterranean Sea through Central Asia and West
Asia whilst connecting China with Southeast Asia, South Asia, and the
Indian Ocean. The Belt would be complemented by the sea route, called
the 21st-Century Maritime Silk Road, which would stretch from Chinas
coast to Africa and Europe via the South China Sea and the Indian Ocean
in one direction, and to the South Pacific in the other direction.

Navigating Through the Silk Road

OBOR initiative includes five key cooperation priorities: policy
coordination, connectivity, unimpeded trade, financial integration, and
people-to-people bonds.
OBOR aims to achieve Policy Coordination through Inter-governmental
cooperation on macro policies and strengthen Connectivity between
the three continents through soft infrastructure ranging from customs
cooperation to trade and investment cooperation. Financial integration
will be achieved through joint efforts to establish the AIIB and BRICS New
Development Bank, signing of MOUs on cooperation in bilateral financial
regulation, establishing an efficient regulation coordination mechanism
in the region, etc. Promoting cultural and academic exchanges,
personnel exchanges and cooperation, media cooperation, youth and
women exchanges and volunteer services, tourism promotion, etc., are
suggested as means of enhancing People-to-people bond.

Other key initiatives include Chinese investment in Central Europe such

as the China-Belarus Industrial Park, a special economic zone in the
Republic of Belarus; signing of 33 deals in Kazakhstan, amounting to US$
23.6 billion covering mining, engineering, processing, transport, oil, gas,
etc.
The establishment of the Asian Infrastructure Investment Bank (AIIB), a
multilateral development bank of the 21st century, is another significant
development. AIIB, launched with 50 signatories, will focus on the
development of infrastructure and other productive sectors in Asia,
including energy and power, transportation and telecommunications, rural
infrastructure and agriculture development, water supply and sanitation,
environmental protection, urban development, and logistics. Launched
with an initial capitalization of US$ 100 billion, AIIB is expected to lend
up to US$ 10 billion-US$ 15 billion a year for the first five or six years
and approve about US$ 1.2 billion of financing in 2016 to fund related
infrastructure projects.

Challenges Ahead

observers curious of how OBOR will function in this context. Regional

Comprehensive Economic Partnership (RCEP) could help in this regard
but has thus far shown slow progress. Without a binding commitments or
a formal coordinating body, the implementation and more importantly the
monitoring of the initiative, could prove to be difficult.
Third, despite the initiative encompassing five broad policy priorities,
existing efforts so far have been geared towards enhancing infrastructure
connectivity, while others have been given relatively less prominence.
Fourth and needless to say, the success of the initiative will depend by
and large on geo- political factors. Indias security concerns in relation to
Chinas activities in the Indian Ocean Region (IOR), rising military tensions
in the South China Sea and President Obamas Asian pivot policy basically
intended to maintain US hegemony in the region are factors at play.
Mutual recognition and trust, which has been stressed by China to be
at the center of OBOR, will be important in addressing some of the
challenges at hand.

Implications for Sri Lanka

Sri Lankas strategic position in the middle of the maritime Silk Road
offers the opportunity of promoting the country as a trading hub in the
Indian Ocean. It is with this view that the Government has pledged to
support Chinas OBOR initiative.
Sri Lankas relations with its second largest trading partner, China, have
been improving over the years. Linked closely with the OBOR initiative,
China has invested in developing Sri Lankas infrastructure and has
emerged as one of Sri Lankas top 5 investors. Latching on to the OBOR
initiative could further improve trade and investment linkages with China
and other OBOR partner countries including East Asia and Europe.
However, there is still very little awareness of the initiative in Sri Lanka.
So far, the countrys experience with OBOR has been strongly linked to
infrastructure connectivity, with less emphasis given to other priority
areas of cooperation. Though OBOR appears to be promising, the lack of
a detailed plan makes it difficult to capitalize on the initiative fully and
assess its long-term benefits and implications for the country. Going
forward, Sri Lanka will benefit from greater information on the OBOR
to determine how best the initiative can be translated into concrete
outcomes for the country in the years to come.

OBOR initiative has raised suspicions on Chinas intentions behind the

ambitious plan. Some observers have viewed it as Chinas Marshall Plan,
aimed at addressing its growing excess capacity issue, especially in the
construction sector. Nevertheless, the initiative has been hailed by others
for its potential to stimulate Asian and global economic growth.
Despite its ability to contribute to Asias reemergence in a changing
economic order, several grey areas around the initiative remain. First,
more clarity is needed on the exact parameters of the initiative and
the exact mechanism of achieving the stated priorities. Cooperation
priorities are broad in scope and cover a range of critical activities.
However, a more detailed account of how these broad activities will be
undertaken at national, regional, inter-governmental levels is yet to be
spelt out.
Second, there are concerns regarding the initiative developing into
a formal binding agreement at some point in time. Proliferation of
mega-regional trade agreements with binding commitments have got

IPS Research Assistant, Nipuni Perera participated in the The First

Silk Road Dialogue and 2016 Annual Conference of Silk Road Think
Tank Association held in February 2016. The conference organized
by the China Center for Contemporary World Studies Shenzhen
Municipal Government Fudan University and Development Research
Center of Shenzhen Municipal Government, marked the launch of
the Silk Road Think Tank Association (SRTA), which intends to provide
intellectual support for Chinas One Belt One Road Initiative.

19

From Millennium
Development Goals to
Sustainable Development
Goals: Is Sri Lanka Ready
for the Next Step?

Figure 1: The Proposed SDGs

By Wimal Nanayakkara

To achieve SDGs by
2030, it is essential
to establish a high
powered coordinating
body, to direct,
coordinate and guide
all stakeholders
responsible for
planning and
implementation of
SDG strategies

The Sustainable Development Goals (SDGs), also known as the Global Goals came into
effect this year. The SDGs are built upon the achievements of the Millennium Development
Goals (MDGs), the eight goals that the world committed to achieve, by the end of 2015. The
MDGs, adopted in 2000, aimed at an array of issues that included reducing poverty, hunger,
disease, gender inequality and improving access to safe water and sanitation. Considerable
progress has been made on the MDGs, in most of the countries including Sri Lanka. According
to the MDG Country Report 2014 Sri Lanka, out of a total of 26 indicators, which had clear
targets, only two indicators were not on track to be achieved by 2015. Despite this success,
there are still disparities between regions, as well as socio-economic groups, which need to
be addressed, so that Sri Lanka can be proud of its achievements.
At the United Nations Sustainable Development Summit on 25th September 2015, world
leaders adopted the 2030 Agenda for Sustainable Development, which includes a set of 17
SDGs. To monitor the progress of these 17 goals, 169 targets have been identified and they
are to be achieved by 2030. The SDGs and associated targets, which came into effect on 1st
January 2016, will guide the decisions that will be taken on development over the next 15
years.

The 17 Proposed Sustainable Development Goals

The new SDGs (Figure 1), and the broader sustainable agenda, go much further than MDGs,
addressing the root causes of poverty and the universal need for development that works for
all people. Unlike MDGs, which had only 8 goals and 18 targets to be achieved within 15 years,
the SDGs have 17 goals and 169 targets to be achieved in 15 years, i.e., by 2030. As such, it
is not an easy task to implement and regularly monitor them, in order to keep them on track,
unless proper mechanisms are in place, to do so.

20

The above 17 Goals and the related 169 Targets, are expected to stimulate action
over the next 15 years in the following areas of critical importance for humanity and
the planet: People to end poverty and hunger, in all their forms and dimensions,
and to ensure that all human beings can fulfil their potential in dignity and equality
and in a healthy environment; Planet to protect the planet from degradation,
including through sustainable consumption and production, sustainably managing
its natural resources and taking urgent action on climate change, so that it can
support the needs of the present and future generations; Prosperity to ensure
that all human beings can enjoy prosperous and fulfilling lives and that economic,
social and technological progress occurs in harmony with nature; Peace to
foster peaceful, just and inclusive societies, which are free from fear and violence;
Partnership to mobilize the means required to implement the proposed agenda
through a revitalized Global Partnership for sustainable development, focussing
in particular on the needs of the poorest and most vulnerable and with the
participation of all countries, all stakeholders and all people.

be understood, mainly due to crosscutting issues, between

goals. As a large number of stakeholders will be involved,
in the implementation and monitoring process, they need to
have a clear knowledge on SDGs and understanding of their
responsibilities. The UNDP and other UN agencies may have to
take a leading role in implementing an efficient and effective
awareness programme, so that each and every stakeholder is
mindful of their responsibilities and knows what needs to be
done. Therefore, an effective awareness creation programme
needs to be implemented among relevant stakeholders.

The third important step is to develop an efficient monitoring and

evaluation mechanism and a proper plan for implementation.
Data gaps should be identified and action needs to be taken
to fill such gaps. Reliable and up-to-date data should be
collected, compiled, analyzed and maintained, preferably by
the Department of Census and Statistics, in collaboration
with other data producers, especially in the Ministries of
Next Steps - What Sri Lanka Needs To Do?
Environment, Health and Education. To monitor the progress
from 2016, it would be necessary to have baseline data, so that
While the government has a major role to play to get things moving in the right
the progress from the baseline could be monitored. It is also
direction to ensure that Sri Lanka successfully achieves the SDGs by 2030, the
government alone cannot do it without the cooperation of all stakeholders, including important to provide disaggregated data, which will ensure that
the people. The SDGs will require an efficient monitoring and evaluation framework the inequalities that may be hampering the progress of any
particular group or groups or regions, could be identified, so
and a properly planned programme for implementation.
that necessary corrective action could be taken to minimize or
eliminate such inequalities.
For this, the first step should be the establishment of an effective coordinating
mechanism, as activities related to SDGs cut across many Ministries, Departments
Further, additional funds required for the implementation
and a number of other state agencies. Therefore, the country needs to establish
of SDGs, may need to be allocated to relevant Ministries,
a coordinating body with the necessary authority to coordinate and monitor the
Departments and other agencies, responsible for the
process of the related activities.
implementation of SDGs. Achieving the SDGs will require an
unprecedented joint effort on the part of the government, civil
The second important step would be to develop an effective awareness
society, the private sector, as well as the people.
programme, as SDGs are still a new subject to many people and too complex to

21

Implementing Green
in Sri Lanka

Goals in SDGs

Meet Wimal Nanayakkara, Senior Visiting Fellow at IPS.

By Kanchana Wickramasingha

Sustainable Development Goals (SDGs) takes more of an integrated

approach when compared to the Millennium Development Goals (MDGs).
A number of environment goals have been included in the new set of
development goals, which is a major transformation from the MDGs.
Accordingly, environment related indicators and targets, takes prominence
in the SDGs.
In the MDGs, there was only one goal dealt with environmental
sustainability, which was measured by 10 indicators. In contrast, SDGs
address issues on biodiversity, climate change, ocean resources and
sustainable consumption and production aspects in separate goals. In
addition, energy resources, sustainable cities, water usage are some of the
aspects incorporated to some other goals. Environmental aspects are also
underpinned in most of other SDG goals, demonstrating inter-linkages with
other goals and environment related goals.
However, measuring the progress of SDGs seems a challenging task, given
the increased number of goals, indicators and targets and their crosscutting nature. Therefore, at the outset, it is important to identify their
national relevance and challenges to ensure that the progress of reporting
is conducted in an effective manner.

National Relevance
Environment related SDGs seems to be broadly in line with the National
Action Plan for Haritha Lanka, which highlights the short, medium and long
term targets in addressing the key environmental issues in Sri Lanka. The
ten broad missions/thrust areas covered by the programme are: (a) Clean
Air - Everywhere, (b) Saving the Fauna, Flora and Ecosystems, (c) Meeting
the Challenges of Climate Change, (d) Wise Use of the Coastal Belt and
the Sea Around, (e) Responsible Use of the Land Resources, (f) Doing
Away with the Dumps, (g) Water for All and Always, (h) Green Cities for
Health and Prosperity, Greening the Industries, and (i) Knowledge for Right
Choices. The Plan is also in the process of revision. The environment
related SDGs are in line with the broad missions of the environment sector
in Sri Lanka.
According to experts in the sector, certain indicators of these SDGs range
from a less relevant end to a highly relevant end. This however, is
normal as a single set of indicators cannot be practically developed to
suite the conditions of many countries.

Challenges
There are several challenges ahead in reporting the progress of the
environment related SDGs. They mainly include resource related
constraints and data issues.

Resources
Financing is viewed as a major barrier for implementing the SDGs and
relevant indicators, which are specially based on scientific and technical
estimations. Also the lack of expertise will be an obstacle for certain
indicators, which are not currently been implemented at national level.
For instance, when it comes to indicator under Goal 12 - Strategic

22

INSIDE IPS

Environmental and Social Impact Assessment Required, the Cabinet has

approved to carry out Strategic Environmental Assessments (SEAs) in
the case of Sri Lanka. SEAs takes a holistic approach when assessing
environmental impacts and is well ahead of the Environmental Impact
Assessments (EIAs), which are usedat present. Conducting SEAs
require a lot of expertise, and the lack of experts to carry out the tasks
has been a significant challenge in implementing the SEAs.

His research interests include poverty, inequality, human development, and

he is a specialist in Sampling and Survey Methodology. He was previously
working in the Department of Census and Statistics, where he functioned as
the Director General for 12 years. Wimal received his BSc in Mathematics and
Physics from the University of Peradeniya, and holds a Postgraduate Diploma in
Applied Statistics from the University of Reading, UK.

In addition, the lack of staff in certain institutes is also a constraint

in measuring certain indicators proposed along with the SDGs. For
certain indicators, data are not being collected at present due to
financial and staff limitations. Measurement of fish stocks (in relation
to indicator 14.5) is an example. Lack of required equipment is
a constraint in generating regular data for certain indicators. For
instance, regular air quality measurements for indicator 69 under
goal 11 have been largely constrained due to absence of required
equipment.

How long have you been with IPS and what is your role at
the Institute?

Lack of data
As per the current mechanism available in Sri Lanka, all the data
required to monitor SDGs are not being compiled by the National
Statistical Agencies such as the Department of Census and Statistics
(DCS), Central Bank, etc. Mostly, in the case of environmental sectors,
data are produced by the agencies, which handle the various related
subjects such as the Forest Department, Sustainable Energy Authority,
etc. As at present, there is no mechanism to measure, compile and
share the information, which are generated by a number of agencies.
Absence of baseline data for monitoring the progress also remains
a main issue with regard to a number of indicators under the SDGs.
The issue is mostly in indicators related to environmental aspects.
Therefore, when implementing SDGs, generating baseline information
should be the first step. Generating baseline data helps to understand
the gravity of the issue in relation to particular goals in achieving
sustainable development. Though some of the environmental issues
are considered as national priorities, most of such issues are explained
qualitatively due to absence of data.

Way Forward
As highlighted above, degree of relevance of SDGs, their targets and
indicators are different in the Sri Lankan context. While Sri Lanka takes
steps to measure SDGs to the maximum extent possible, the country
should also develop its own indicators for environmental sustainability.
This might require comprehensive stakeholder consultations.
A high degree of coordination is a must in relation to SDGs, as
environment related indicators are scattered under several goals.
Ministry of Mahaweli Development and Environment and the Ministry
of Sustainable Development and Wildlife have the mandate with regard
to environmental sustainability of the country. In addition, there needs
to be an effective coordination mechanism among other sectors, since
many economic sectors have various inter-linkages with environment
and natural resources.

Almost 9 years, and as a Senior Visiting Fellow/Consultant, I engaged in

research and preparation of reports related to poverty, inequality, MDGs,
SDGs, etc.

are made use of, by the planners and policy makers, in formulating
policies for the benefit of the voiceless, deprived and vulnerable
groups of the country.

What inspired you to choose Poverty as an area of

What advice can you give career starters who are keen
specialization and what aspects are you most passionate to explore this line of work?
about?
My real specialization is in statistics and not poverty. In around
mid-1980s while I was the head of the Sample Surveys Division
of the Department of Census and Statistics, we wanted to develop
a methodology to measure poverty in Sri Lanka, as there was no
acceptable methodology at that time. We had to a try a lot of different
methods before we were able develop a suitable methodology, which is
being used up to now to measure poverty in Sri Lanka. This inspired me
to continue my research on poverty and inequality, as the finding could
be used to improve the living conditions of voiceless and vulnerable
people in our country.

What are the most memorable related achievements in

your career?
Opportunity to influence policies related to poverty reduction strategies
and identifying the poorest areas in the country which were useful
in providing additional funds to reduce poverty and improve the
living conditions of the people of such areas. Another memorable
achievement,which I enjoyed very much was restructuring of the
Department of Census and Statistics, and upgrading almost every
professional/ technical post in the Department of Census and Statistics
in 2001. This helped in improving the efficiency of the entire department.

Why do you think poverty related research is important

to Sri Lanka?
Although Sri Lanka managed to reduce poverty to a very great extent,
still there are lagging areas and socio-economic groups, which need
special attention. Inequality is still very high. As such, it is extremely
important to continue research on poverty and inequality which should
help in eradicating poverty and reducing inequality.

What is IPSs role in this?

IPS should be able to influence policy for inclusive economic growth. IPS
should ensure that key findings of research done by the researchers,

They should learn to do in-depth analysis of survey data, if they really

want to do research on any subject area, not only poverty. Doing
research using only the published data is not adequate.

What aspects of your personal life help you do your job

well?
Dedication and taking responsibility for whatever I do. When I was
the Head of the Department of Census and Statistics I used to tell my
officers Do your work honestly, without any fear or favour. If anything
goes wrong I will take the responsibility. So they enjoyed their work
as a team and never let me down.

What are your thoughts on the Global Goals and its

relevance to Sri Lanka in terms of eradicating poverty?
The Sustainable Development Goal (SDG)-1, says, eradicate extreme
poverty [i.e., those below global poverty line US$ 1.25 (2005 PPP)] and
reduce present level of poverty, based on national poverty line, by half,
by the end of 2030. The SDG 10 recommends that inequality should
be reduced. Inequality is a major concern in Sri Lanka, as income
inequality is extremely high. As such, Sri Lanka should make every
effort to reduce income equality, which is an obstacle for inclusive
growth. The theme for SDGs is Leave no one behind.

What do you feel are the biggest poverty issues the

world is facing today, and how can they be tackled?
It is a fact that millions of people, including children, in developing
countries and least developed countries are affected by hunger. Around
800 million people in the world do not have enough food to lead a
healthy active life. Sub-Saharan Africa has the highest prevalence
of hunger, and one fourth of its population is undernourished. Two
thirds of the people affected by hunger are in the Asian region. Hunger,
inadequate shelter, lack of safe drinking water, adequate sanitation,
inadequate health facilities, etc., are the major issues faced by millions
of vulnerable people in the world.

23

Article to mark international womens day

Recognizing womens struggles, achievements, and contributions
in many spheres, the International Womens Day (IWD) is globally
celebrated on 8th March each year. IWD first emerged from the
activities of labour movements at the turn of the 20th century in
North America and across Europe. This year, the United Nations
celebrates IWD under the theme Planet 50-50 by 2030: Step It
Up for Gender Equality. The aim of the theme is to provide more
emphasis on the 2030 Agenda for Sustainable Development and
to build momentum for the effective implementation of the
Sustainable Development Goals (SDGs).

Making a Better
Place for Her:
Gender Equality for
Sustainable
Development in
Sri Lanka
By Sunimalee Madurawala
Box 1: Targets under SDG 5
Achieve Gender Equality and Empower all Women and Girls

2 Eliminate all forms of violence against all women and girls in the public
and private spheres, including trafficking and sexual and other types of
exploitation

3 Eliminate all harmful practices, such as child, early and forced marriage
4 Recognize and value unpaid care and domestic work through the

The Unfinished Agenda

5 Ensure womens full and effective participation and equal opportunities

Womens participation in the labour force has been low in Sri Lanka
for a considerable period of time. Limited job opportunities for
women, issues related to transport, social attitudes, personal safety
and housing, gender wage gap, and high work related costs are
some key reasons for this. Sri Lanka Human Development Report
2012 says political parties are the single biggest barrier to womens
greater participation in politics. Political parties as well as the voters
prefer males being nominated and elected. Violence involved in
the election process is also discourages interested females from
actively participating in politics.

24

and female genital mutilation

provision of public services, infrastructure and social protection policies

and the promotion of shared responsibility within the household and the
family as nationally appropriate

for leadership at all levels of decision making in political, economic and

public life

6 Ensure universal access to sexual and reproductive health and

Services, National Child Protection Authority and Childrens Secretariat

fall under this ministry.

With this unfinished agenda, achieving the SDG 5 to make a better

place for women and girls by 2030 is definitely a challenge. Among
the critical challenges the country has to face are coordination and
management of implementation process of SDG 5, awareness creation,
generating more sex-disaggregated data, and resource allocation.

Facing the Challenges

Given that the gender is a cross cutting issue, a well-functioning central
coordinating and management mechanism and a separate mechanism
to focus only on matters related to SDG 5 are essential elements of
successful achievement of SDGs. Proper coordination is required as
several parties (Ministries, INGOs, NGOs, CBO, etc.) carry out work
targeting women and girls. There may be duplication of work while
certain areas may get neglected. Awareness creation should cover all
stakeholders along with the encouragement of attitudinal and behavioural
changes. The Ministry of Women and Child Affairs could play a leading
role in this regard, as the Sri Lanka Womens Bureau, National Committee
on Women, as well as the Department of Probation and Childcare

Generating and disseminating more sex-disaggregated data is important

to reveal the differences between sexes and to reflect problems, issues,
and questions related to women and men in the society. Further, such
data will be essential for effective monitoring. In this regard, national
institutions like the Department of Census and Statistics should be
strengthened and encouraged to collect and disseminate more sexdisaggregated data.
However, the success of overcoming these challenges will depend on
the availability of resources and resource allocation. Financial as well
as non-financial (human resources, knowledge and skills) resources are
needed for the successful implementation of SDG 5. Sufficient resources
towards achieving gender equality must be ensured and allocated in the
national budget.
Given that investing in gender equality can guarantee the paths to
poverty reduction, inclusive growth and prosperity; giving emphasis and
priority to making a better place for the countrys women, will benefit the
entire nation, leading to sustainable development.

Table 1: Progress and Status of Indicators Related to Gender Equality and Empowerment under MDGs

1 End all forms of discrimination against all women and girls everywhere

SDG 5; Achieve Gender Equality and Empower All Women and

Girls, focuses on women and their empowerment. As a signatory
to the development agenda for post 2015: Transforming our World:
The 2030 Agenda for Sustainable Development, Sri Lanka has the
responsibility to work towards achieving the targets proposed under
the SDG 5 (See Box 1).

Although Sri Lanka was able to make remarkable progress in

achieving most of the Millennium Development Goals (MDGs) by
2015, the country was unable to attain some crucial indicators
related to gender equality and empowerment. Out of the main
three indicators under Goal 3 of MDGs, Promote Gender Equality
and Empower Women, Sri Lanka was able to see a satisfactory
progress only in one indicator (i.e., ratio of girls to boys enrolled in
primary, lower secondary, upper secondary and tertiary levels). The
other two indicators related to economic empowerment and political
participation of women in the country did not progress as desired
(Table 1).

The Challenges Ahead

Indicator

1995

2002

2006

2015
Target

Status of
Indicator

99.4

100

Achieved

102.6

100

Achieved

2012

Ratio of girls to boys (number of girls

per 100 boys) enrolled in :
Primary

94.2

94.6

99.0

Lower Secondary

91.2

94.8

105.7

Upper Secondary

107.7

101.8

75.4

113.8

N.A.

N.A.

100

Achieved

30.8
(1993)

32.8
(2001)

32.2
(2007)

32.0
(2011)

No
Target

Need to
increase

5.8
(1989/94)

4.2
(2000/04)

5.8
(2004/07)

6.8
(2010/14)

No
Target

Need to
increase

Tertiary
Share of women in wage employment in
the non - agricultural Sector (%)
Proportion of seats held by women
in national parliament
Source: MDG Country Report 2014, Sri Lanka

reproductive rights as agreed in accordance with the Programme of

Action of the International Conference on Population and Development
and the Beijing Platform for Action and the outcome documents of their
review conferences

Undertake reforms to give women equal rights to economic resources,

as well as access to ownership and control over land and other forms
of property, financial services, inheritance and natural resources, in
accordance with national laws

This article is based on the study by

IPS titled National Level Implications of
Implementation of SDGs: The Case of
Sri Lanka funded by the Southern Voice
Secretariat.

8 Enhance the use of enabling technology, in particular information and

communications technology, to promote the empowerment of women

and strengthen sound policies and enforceable legislation for the

9 Adopt
promotion of gender equality and the empowerment of all women and
girls at all levels

25

Expert Insights

Talking Economics spoke to the Head of UN-ESCAP South

and South-West Asia, Dr. Nagesh Kumar on Achieving
Sustainable Development Goals (SDGs): Key Policy Priorities and
Implementation Challenges for South Asia and Sri Lanka.

Several South Asian countries including Sri Lanka have

failed to achieve the MDGs that were set. How does this
translate to what the SDGs have set out for us, and is there
a disparity between the two agendas or is there more (of
an) overlap and how does it work?
SDGs build on Millennium Development Goals (MDGs); in fact, the first
seven goals are a continuation of the MDGs.
Various countries in the world have achieved many of them, and South
Asia can feel happy that many of the MDGs were actually achieved,
including the goal of poverty reduction. The first seven goals under the
SDGs are essentially MDGs with a higher level of ambition. The level of
ambition now is leaving no one behind. For instance, during the MDGs
time, the goal was to reduce extreme poverty by 50% and now it (is to
eliminate or end- extreme poverty).

consideration because unlike in the year 2000 when MDGS were

launched, there is a better appreciation of the risks of climate change and
environmental and ecological damages that development and growth can
bring about. So, we need to integrate the economic processes for growth,
production and consumption with such environmental considerations. These
are some of the key policy priorities which can help South Asia achieve
these goals in an accelerated manner.

Finally, what implementation challenges will South Asian

countries face with SGDs and how do we address them?
Well, I think the two critical implementation challenges, which most
countries in the world have to address are the financial resources and
the technology and capacity building. In South Asia, staggering amounts
of resources will be required for achieving these goals because there are
very wide infrastructure gaps to be closed - for example; education, health
issues, and social protection.

Within those 17 SDGs, there are 169 goals set out, which;
realistically speaking will require some prioritization on the The estimates that we made at ESCAP suggest that between 10% - 20% of
the GDP will need to be spent on achieving these goals. In money terms, this
part of policy makers. What sort of priority areas have you
translates to 2.5 trillion dollars of additional investments every year for Asia
identified for south Asia and particularly Sri Lanka?
When going through the list of 17 goals and 169 targets, one finds
that many of these goals and targets are interrelated. This suggests
that one goal is achieved when another is also achieved, and this
process becomes faster if the other conditions are there. These 7
key policy priorities include, for instance, a growth that creates jobs
because South Asia has had a relatively good growth and is currently
the fastest growing sub region in the world. However, this growth has
not been generating adequate jobs, so the employment elasticity of
jobs and employment elasticity of growth of South Asia has gone down
over time. The second key priority would be closing the infrastructure
gaps. For example, present in transportation, electricity and water.
One third of households in South Asia do not have access to water and
electricity. This is a poor situation because many of the achievements
for development goals are dependent on these infrastructures. The
third key priority would be to focus on universal access to health
and education to harness the youth bulge of South Asia, although Sri
Lanka is an exception in this respect and has already passed such a
demographic transition. However, other South Asian countries need
to harness this youth bulge through investment in human resource
development, education, and universal quality health care. The fourth
key priority would be taking care of poverty and inequality by extending
social protection and enhancing financial inclusion. The proportion
of people who do not have access to social protection is very large
in South Asia and this issue needs to be addressed immediately.
Additionally, harnessing the potential of gender equality and womens
empowerment through gender sensitive ecosystems for women can
unleash trillions of dollars of additional income and can be highly
productive. Further, there should be greater sensitivity to environmental

26

pacific and a large part of that will be for South Asia. But fortunately, there
are potentials for raising resources domestically, regionally and globally for
South Asian countries. For instance, South Asian countries have very low tax
to GDP ratios, which also means that they have greater potential of reaching
domestic revenue and enhancing the efficiency of revenue and expenditures.
So, one policy is introducing innovative taxation systems like some of the
South Asian countries are already doing. For example; Bhutan and Maldives
have imposed green tourist taxes, and India has imposed a tax for funding
the universal education and literacy program, as well as a tax on sanitation
used to fund a sanitation program. So, there are possibilities of new and
innovative taxes.
Finally, from the technological aspect, a lot of technology and knowledge
is privately owned and concentrated highly in a few advanced economies.
Hence, a lot of global technology partnerships would be very desirable,
and promote the facilitation of technology for South Asian developing
countries. Also, South Asia has some strength in frugal engineering and
frugal innovation, which can be harnessed to develop low cost, low carbon
products and services and some of it can be done by pulling resources
through regional cooperation in technology. There are many opportunities
for regional cooperation from developing regional board markets to creating
resources and developing affordable low carbon services, and developing
regional value chains for creating jobs and manufacturing sectors. There
are many corporation opportunities for South Asia, as well as opportunities
for developing the regional capacity for generating data and statistics for
monitoring the achievement of these goals and targets.

You can watch this interview on our YouTube Channel IPS Sri Lanka

Can Sri Lanka

Eradicate Poverty
and Reduce
Income Inequality
by 2030?
By Wimal Nanayakkara

Although inequality in a society is not a new phenomenon, if inequality

persists, without proper attention, it could affect the overall economic
growth of the country and the efforts to reduce poverty. Reducing
incidence of poverty by half and eradicating extreme poverty, are two of the
important targets expected to be achieved by 2030, under the Sustainable
Development Goals (SDGs). Although many countries including Sri Lanka
managed to reduce poverty during the last two to three decades, inequality
is still a major concern. Inequality in income represents only one dimension
of inequality. Data on access to education and health, ownership of assets,
access to services such as water, electricity, improved sanitation, etc., can
also reveal inequality to be quite high, even in countries in which income
inequality is not particularly high. As such, due attention should also turn
to the disparities in education, health, nutrition, access to various services,
as well, to identify the possible inequalities, which may exist, so that
appropriate action could be taken to minimize such gaps. In this article, the
discussion is limited to only poverty and income inequality in Sri Lanka.

Eradicating Extreme Poverty

Free education and health services, and various social protection
programmes, implemented by successive governments, for more than six
decades have helped Sri Lanka achieve most important MDG targets, related
to education, health, poverty and access to services.

However, still there are regional variations, which need the attention
of planners and policy makers. The incidence of poverty in the
country, declined steadily from 26.1% in 1990/91 to 6.7% in
2012/13 (Figure 1), based on the national poverty line. The proportion
of population living below the global poverty line $1.25 a day [2005
Purchasing Power Parity (PPP)], which was used to measure extreme
poverty, until 2015, fell from 15.0% in 1990/91 to 3.5% in 2012/13.
The other global poverty line, which was also used for international
comparisons, was $2.00 a day . The proportion of population below
$2.00 a day, declined from 49.5% in 1990/91 to 19.6% in 2012/13.
However, the gap between these two poverty lines ($1.25 a day and
$2.00 a day) is still high, indicating that considerably high proportion
of the population is just above the extreme poverty line and therefore
could slip back to extreme poverty due to economic shocks, such
as increases in prices of basic essentials, loss of livelihood due to
natural disasters or any other reason.
Although incidence of poverty is low in Sri Lanka, bringing extreme
poverty to zero level, will be a challenging task. To achieve this,
proper identification and precise targeting of people in extreme
poverty, for social protection programmes is essential. In-depth
analysis of the data, of Household Income and Expenditure Surveys
(HIES) conducted by the Department of Census and Statistics (DCS),
shows that the poorest people in Sri Lanka are those living in
households headed by agricultural or non-agricultural labourers,
skilled agricultural workers and persons, who are disabled or too
old to work. As such, further reduction of poverty or eradicating
extreme poverty, will depend on precise targeting of most vulnerable
groups and on effective strategies to create suitable employment
opportunities, in all the regions. Analysis of HIES data, show that
some of the most deserving families are not covered in social
protection programmes like Samurdhi, while those not deserving,
continue to receive such benefits.
Bulk of the poor are largely rurally based and majority rely on
agriculture for their livelihood. Although agricultural sector show a
relatively slow growth, compared to industrial and service sectors
and the contribution to GDP is only around 10%, it does not mean
that the agricultural production is declining. It simply means that the
service and industrial sectors are growing at a faster rate.

27

Proportion of population below poverty line (%)

Figure 1: Proportion of Population below different Poverty Lines (Global PPP2005 and National)
- 1990/91 to 2012/13
90.0

"National Poverty Line "

corresponds to approximately
$1.45 a day (PPP2005)

80.0
70.0
60.0
50.0

49.5

46.7

40.0
30.0

26.1

29.1

22.7

23.8

15.2

20.0
10.0

39.7

28.5

16.3

15.0

14.0

7.0

0.0

1990/91
$1.25

1995/96
$1.45

2002
$2.00

2006/07
$2.50

$3.00

6.9

4.1
2009/10

3.5
2012/13

National Poverty Line

Source: Based on Household Income and Expenditure Surveys (DCS) and World Bank Povcalnet

The increase in income inequality does not

necessarily mean that the poor are getting
poorer and rich are getting richer. It is rather, the
rich getting richer, at a faster rate. As such, as
recommended by SDG targets, it would be necessary
to adopt suitable policies, to ensure progressive
achievement and sustained income growth of the
bottom 40% of the population at a rate higher than
the national average.

Figure 2: Share of Household Income by Household Income Deciles 1990/91 to 2012/13

Share of Household Income (%)

Importance of the Agriculture

Sector

19.6

8.9

in the richest 10 % of the households, who hold

the major share of household income. This pattern
has remained unchanged throughout the period
from 1990/91 to 2012/13. The Gini coefficient for
household income, which is one of the key measures
of inequality, increased from 0.43 in 1990/91 to
0.49 in 2006/07 and remained unchanged at around
0.48, thereafter.

Re-Definning Urban Areas in Sri

Lanka

Facilitating Trade Between India and

Sri Lanka

By Bilesha Weeraratne
JUNE 2016,
Working Paper Series No. 23

By Suwendrani Jayaratne and

Janaka Wijayasiri
MARCH 2016
Working Paper Series No. 22

The existing urban population estimate

in Sri Lanka fails to reflect the true level
of urbanization due to the inappropriate
definition that has been adopted. This
paper develops an alternative definition
for urban areas in Sri Lanka to reconcile the mismatch between actual
and existing estimates and makes an important contribution to Sri
Lankas policy and legislative arena to revise the existing definition of
urbanization.

45

Given the significance of improving

bilateral trade with India, this study
examines the main trade facilitation
related issues traders face when
importing and exporting under the India-Sri Lanka Free Trade
Agreement. The study aims at identifying these issues and potential
means of improving the identified areas through key informant
interviews carried out among 20 stakeholders including export and
import companies and key trade related institutions in Sri Lanka.

40

The share of household income of the poorest

It is important to note that around 30.0% of
10% of the households , remained less than
35
the employed population in the country are still
2%, while the corresponding share of the
30
engaged in agriculture and are producing food for
richest 10%, remained around 38%.
25
20.3 million people. This fact should not be ignored
20
when developing strategies to reduce poverty and
15
to eradicate extreme poverty. Pro-poor economic
10
transition cannot be achieved by abandoning the
5
agricultural sector. Instead, sufficient attention
0
need to be given to: increase agricultural
D1
D2
D3
D4
D5
D6
D7
D8
D9
D10
productivity by improving extension services,
Poorest 10%
Richest 10%
Household Income Deciles
introduce new technology and farming techniques,
1990/91
1995/96
2002
2006/07
2009/10
2012/13
which helps farmers; provide necessary advice
Source: Based on Household Income and Expenditure Surveys, DCS
and assistance to setup agro based industries,
which could create new employment opportunities
for rural youth; continuously improve rural infrastructure and marketing
facilities, so that the farmers could easily find markets for their produce.
Options to Reduce Income Inequality
Promoting sustainable agriculture is the key to achieve the SDG-2 End hunger, achieve food security and improved nutrition and promote
sustainable agriculture.
In addition to what has been already recommended above, it is necessary

Persisting Income Inequality could Harm

Economic Growth
High and growing inequality makes inclusive growth more difficult.
Beyond a certain threshold, inequality could harm growth and poverty
reduction. Although there was no specific goal on inequality, under MDGs,
for SDGs, Goal 10: Reduce Inequality within and among countries, is
specifically dedicated to inequality. The main target under this goal says,
By 2030, progressively achieve and sustain economic growth of the
bottom 40 percent of the population at a rate higher than the national
average.
This is not an easy task, as income inequality in Sri Lanka is high and has
remained more or less unchanged, for more than three decades. While
the share of household income of the poorest decile has remained less
than 2 %, the corresponding share of the richest decile has remained
around 38 % throughout the period from 1990/91 to 2012/13 (Figure 2).
Even in the 9th household income decile, the share of total household
income, is only 15%, while the share of the richest decile, is more
than twice the share of the 9th decile, indicating that it is the people

28

Latest Publications

to create more decent employment opportunities for youth in all regions,

especially for rural youth and women in general, to reduce income
inequality. Labour Force Participation Rate for women in Sri Lanka is
extremely low (around 35 %). This could be mainly due to non-availability
of suitable employment opportunities closer to their homes. Availability
of such employment opportunities, that do not require long distance
travel, makes it easier for them to balance child-care responsibilities
with work. Flexible working hours and/or facilitating working from home
may be attractive to women. This may help in increasing the labour force
participation of women, which will increase their family incomes.
At least one family member at a household being employed with a
decent, regular income increases the chance of improving the living
conditions of the entire family. Many individuals with low skills in
particular, remain trapped in precarious jobs, often in informal and
unregulated economic activities. In such jobs, even full-time employment
tends to be insufficient to lift households out of poverty. As such, well
designed active labour market policies aimed at improving skills to meet
the demand to reduce the present skills mismatch is important. Thus,
creating accessible, productive and rewarding jobs in all regions, without
any discrimination, is the key to minimize poverty and reduce inequality.

Visit our YouTube Channel IPS Sri Lanka for Interviews with the Authors.
For Details on IPS Publications Contact:
Amesh Thennakoon, Publication Officer, 011 214 3107 or 011 214 3100 | amesh@ips.lk or publications@ips.lk

Forthcoming Publications
Sri Lanka: State of the Economy 2016: Fiscal Policy for Growth: Sustainable Financing for Development

The IPS annual flagship report Sri Lanka: State of the Economy provides
a critical assessment of the countrys economic performance and near
term outlook for growth and macroeconomic stability. Each year, the
report also examines critical medium term policy priorities to achieve
sustained growth and better socio-economic development outcomes for
the country.
This years Sri Lanka: State of the Economy 2016 report focuses
on the many interrelated problems constraining investment and
productivity across the Sri Lankan economy owing to weak public
finance management. At the macro level, high fiscal deficits and public
debt generate macroeconomic instability, with adverse consequences
on growth and on an economys resilience to withstand shocks. At the
micro-level, tax and spending policies can have a bearing on investment
and productivity to influence the trajectory of economic growth and its
distributional impacts.
Under the overall theme of Fiscal Policy for Growth: Sustainable
Financing for Development, the report calls for fiscal consolidation
efforts aimed at broadening Sri Lankas tax base and minimizing
distortions, with expenditure measures aimed at rationalizing spending
and improving efficiency. The report argues for sound fiscal policy setting
as a priority for macroeconomic stability, a fundamental prerequisite
for sustained growth. At the same time, the report argues that the

effectiveness of fiscal consolidation efforts is likely to be enhanced when

reforms reinforce each other through a careful calibration of taxes and
expenditures to harness growth and improve economic outcomes across
key policy areas. The report discusses and recommends improvements in
public finance management related to:

Promoting Exports and FDI under Financing Constraints

Fiscal Policy and Labour Market Reforms

Advancing Sri Lankas Education System through Innovative

Funding

Health Care Financing in Sri Lanka: Challenges and Alternatives

Improving Efficiency and Mobilizing Resources for Poverty Reduction

Initiatives in Sri Lanka

Financing Urbanization

Sustainable Development under Economic Constraints: MBIs and

Environmental Fiscal Reforms

Role of Economic Incentives in Financing Agricultural Investments

29

employment ratio reflect ecological and economic elements, respectively.

However, until appropriate data becomes available this ideal definition
also fails to address the current issues of an urban definition and
estimates.
Nonetheless, the same study develops a more practical Alternative
Definition, which uses proxies for unavailable data and defines urban
areas as follows.

Alternative Definition:
If a GND has a minimum population of 750 persons, a population density
greater than 500 persons per km2, firewood dependence of less than 95
% households, and well-water dependence of less than 95% households,
such a GND is defined as an urban area.

The advantage of this alternative definition over the

AI is its appropriateness for Sri Lanka due to the use
of country specific characteristics and critical values

Can We Produce Better Estimates of

Urbanization in Sri Lanka?

Figure 2: Urban Areas as per Alternative Definition - 2012

Current Definition
As per the current definition, Municipal and Urban Councils are considered urban areas.
Until 1987, Town Councils (TCs) were also urban. With the 13th Amendment to the
Constitution, TCs were abolished and absorbed under the Pradeshiya Sabhas, which
are considered rural. The vertical line at 1987 in Figure 1 depicts this change and the

Definitions in Other Countries

Urban population

Lowess trend

2011

2001

1991

1981

1971

1961

1951

1941

1931

1921

1911

1901

1891

15
10

A forthcoming study by the IPS suggests an ideal

definition for urban areas in Sri Lanka, defined at
the Gramaseva Niladhari Division (GND) level, using
four indicators. Minimum population and population
density reflect the social characteristics of urban
population, while plot area ratio and non-agriculture

In this alternative definition, the cutoff values of proxies are justified

by data where over three-fourth of the GNDs have a well water
dependency less than 95%, and a half of GNDs have a firewood
dependency less than 95%. For population level and density, the critical
values are reasonable for Sri Lanka, compared with definitions in other
countries, and justified by data.

Alternative Estimates
Combining these criteria 3,659 GNDs can be identified as urban (see
Figure 2), which accounts for an urban population of 8,334,801 persons.
Colombo district has the highest share of urban population (90%)
followed by Gampaha and Kalutara (see Table 1).

Table 1: Alternative Estimates of Urban Population - 2012

In this context, as noted by DCS it is important to

introduce a realistic definition of urban areas taking
into account the characteristics of the population rather
than based on administrative considerations alone.

A New Definition

1881

% of Population

20

Figure 1: Urban Population Share Estimates 1881-20

associated urban population share estimates before

and after 1987.

There is no universally accepted definition for urban

and every country defines urban independently.
In 2011, out of the 231 countries reported in the
World Urbanization Prospects, only 28% used a pure
administrative definition, while most countries used
criteria such as urban characteristics, population size,
and population density to distinguish urban areas.
Some countries used a combination of population and
geographic characteristics with administrative criteria.
India, for instance, defines urban as areas which have
a minimum population of 5,000, a minimum density
of 1,000 persons per square mile and at least 75% of
the adult male population being employed in nonagriculture activities.

Similarly, the validity of cooking energy as a proxy for economic element

rests on the Energy Ladder hypothesis and the related nexus between
higher per capita incomes, increased urbanization and replacement of
traditional energy sources with modern ones. Studies show that Sri
Lanka as a whole is moving away from traditional fuels towards modern
ones, while relying on a portfolio of fuels, in which the type of energy
used is associated with income, where the use of firewood declines
when income increases.

This Alternative definition estimates 43.8% of the Sri Lankan population

to be living in urban areas, which is very close to the 48% quoted by the
Minister of Megapolis and Western Development, and the 47 % estimated
by the Agglomeration Index (AI).

By Bilesha Weeraratne

Sri Lanka has a visibly high rate of urbanization and ambitious plans for further urbanization
through the envisioned Western Region Megapolis Project. Nonetheless, the latest official
statistics indicate that only 18.2% of the population lives in urban areas. This does not
reflect the true level of urbanization in Sri Lanka. World Bank notes that while urbanization
data in Sri Lanka are much debated, there is consensus that the country is urbanizing faster
than the statistical figures suggest. Similarly, in many cities in Sri Lanka, the true extent
of the city extends beyond its administrative boundaries, while as much as one-third of the
population may be living in areas that ought to be classified as urban areas. Reinforcing
these views, the Department of Census and Statistics (DCS) confirms that the current
definition underestimates urbanization and that the urban population `would have been
much higher if the definitional issues were resolved.

pits, and 50% of households rely on well water).

District
Colombo
Gampaha
Kalutara
Kandy
Galle
Puttalam
Vavuniya
Batticaloa
Ampara
Kegalle
Trincomalee
Ratnapura

Urban Pop. %
90.51
67.32
62.09
56.98
50.31
42.77
41.87
39.47
37.53
34.29
34.02
30.40

SRI LANKA

43.80

District
Matale
Badulla
Mannar
Matara
Hambantota
Nuwara Eliya
Polonnaruwa
Kurunegala
Anuradhapura
Moneragala
Kilinochchi
Mullaitivu

Urban Pop. %
28.91
28.46
28.46
25.11
23.92
23.86
16.48
12.84
11.94
6.02
1.62
0.90

Note: Data not available for Jaffna district.

Source: Authors estimation applying the Alternative Definition to Census 2012 data.

Note: Data not available for Jaffna district.

Source: Authors estimates applying the Alternative Definition to Census 2012 data.

Advantages

In this instance, dependency shares are defined as the share of

households relying on firewood or well water as the principal source
of cooking fuel or drinking water, respectively. The existence of a well
indicates the availability of open space in a plot, hence a proxy for plot
area ratio. Its validity is justified based on building guidelines (minimum
distance of 18 meters between well and soakage pit of septic tank,
minimum distance of 5 meters between soakage pit and nearest building,
and minimum distance of 3 feet between well or septic tank and
boundary walls), and statistics (94% of households rely on septic tanks/

The advantage of this alternative definition over the AI is its

appropriateness for Sri Lanka due to the use of country specific
characteristics and critical values. This new definition also improves
on the rigidities of the existing definition, and can be applied to many
datasets such as the Household Income and Expenditure Survey to
obtain data with diverse variables to conduct in-depth research on urban
housing, health and employment, to name a few. Such research would
be invaluable for the success of the planned Western Region Megapolis
Project.

Source: 2012 Census of Population and Housing, DCS.

30

31

Sri
Lankas
Invisible
Children:
The Need for Inclusive Education for Children with Special Needs

By Yolanthika Ellepola

and intellectual disabilities abstain from

attending schools. This is because public and
private provision of education lacks expertise
and capacity to deal with such children.

students are unable to reach educational

institutions due to under-developed transport
networks and distant learning centres. While
such barriers affect all students in poorly
serviced communities,
Figure 1: Education Activities of Mentally and Physically Disabled Children
particular groups of
Aged 0-19 Years
learners in wheelchairs
for example, are more
severely affected
by these barriers.
This hampers their
education and is thus
totally excluded from
the education system.

SCHOOLING

62%

ABSENCE OF
EDUCATION

34%

OTHER
EDUCATIONAL
ACTIVITIES
VOCATIONAL
TRAINING

1%

Barriers to Learning for Disabled Children

exclusion of these children from education.
Limitations of census and general household
surveys to capture household disabilities;
absence of civil registries in most low and
middle income countries; underreporting due
to the stigmatization attached; unavailability of
disability assessment and health screening to
identify child disabilities and impairments, all
underlie this ambiguity.

Status of Child Disabilities in Sri Lanka

According to the Census of Population and

Housing 2012, within the age of 5-19 years,
53% of males and 47% of females are mentally
and physically disabled children. Visibility
impairments are the most common disabilities
seen in both gender groups. Most functional
disabilities are seen in the estate sector (9.3%)
followed by 8.9% and 7.2% in the rural and
urban sectors, respectively.

Reliable and comparable disability data are

under reported in most countries including
Sri Lanka. According to UNICEF South and
East Asian Regional Report, absence of
information on handicapped children is the
most significant factor contributing to the
invisible status, which often leads to the

Sri Lankas attention to provide education

to children with special needs dates back
to early 1970s when the Education Ministry
initiated increasing opportunities for differently
abled children through integration. More
recently, emphasis has been placed on
inclusive education with developments in

According to Figure 1, there are 88,740

mentally and physically handicapped children
between the ages of 5 -19 years, of which 62%
are receiving education through mainstream
schooling, and 34% have not received any form
of education. . These statistics indicate that
the severely handicapped children with multiple

32

This article takes a look at the status of child

disabilities in Sri Lanka, explores barriers to
realizing inclusive education and proposes
policy recommendations to integrate them into
mainstream economy.

the UN Convention on the Rights of the Child

(CRC). Although differently abled students
are presently allowed to receive education
in Government schools, either through
inclusion in mainstream classrooms or special
education units, due to choice or otherwise,
these students attend special needs schools
conducted by NGOs and the private sector.

Educators often
through inadequate
training fail to meet
the needs of some of
diverse learners. A
study by Hettiarachchi
et.al (2014) found that
most teachers lack
awareness and specific
knowledge on inclusive
methodologies to
support children with
special educational
needs, which
disempowers them
from supporting children with special needs
in their classroom. One off seminars and
workshops are insufficient and professional
development opportunities in an on-going basis
are urgently needed.

3%

Source: Census of Population and Housing 2012; IPS Database

Children with disabilities or special needs

often experience widespread violations of
their rights. The World Report on Disability
estimates one billion people in the world are
living with disabilities, of which 93 million
children aged 0-14 years experience moderate
or severe disabilities while 13 million children
experience severe disabilities. Merely 10%
of all handicapped children begin school yet,
many drop out due to unpleasant experiences,
and only 5% of children with disabilities
worldwide complete their primary education.
Inclusive education therefore recognizes every
childs fundamental right to learn. It provides
equal opportunities to all children and attempt
to alter school culture, policies and practices
to accommodate differences in learning and
physical abilities of children.

Inflexible
Curriculum

Societal Attitudes
Perceptions and attitudes towards different
types of disability vary among different
stakeholders. A recent UNICEF study found that
while handicapped children prefer to receive
an education in regular classrooms, they fear
reactions of peers towards their capabilities.
Similarly, parents have signaled mixed opinions
towards their support of special education,
while teachers reveal mixed opinions towards
including children with disabilities in regular
classrooms. Concerns for supporting inclusion
include lack of preparedness of schools,
inadequate skills training, and time for planning
and commitment. Many professionals are
skeptical of the idea of inclusion, and prefer to
provide education separately from the regular
classroom.

Lack of Access to Basic Services

Proper services and facilities that are key for
such children to participate in the learning
process do not exist in the country, restricting
their access to education. Differently abled

A study by Abeywickrama et.al (2013) found

the strong need for more material or equipment
essential for the learners education, functional
independence and interaction with others in
the learning environment. Low cost assistive
devices such as large print books, Braille
text books and talking books are unavailable
in many public institutions. Although poor
economic status of the country contribute to
this, a lack of exposure to information and
knowledge in adopting classroom practices
may be equally responsible. Furthermore,
learning breakdown also occur through
mechanisms used to assess learning outcomes.
Assessment processes are often found to be
inflexible and designed to only assess the
extent of information that can be memorized
rather than the learners understanding of the
concepts. Some due to their intellectual setback
are then compelled to repeat aspects of the
curriculum, which compel them to remain in
levels where the age gap between the learner
and peers are significant.

What can be done?

Overcoming Myths of Disability
Parents of children with disabilities are
psychologically, emotionally and socially
unprepared. They tend to feel isolated,
frustrated and guilty. Parents, like wider
society, may be ignorant about the causes
of disability. Thus, it is vital to create proper
awareness on early identification and
intervention support, medical and therapeutic
services, and early childhood education and
schooling. Deliberating with other parents has
proved valuable in helping them to gain new
perspectives. Families need to be given factual
information about the causes of disabilities and
how the child can be helped. Seeing examples
of children with disabilities involved in everyday
activities has proved effective.

Providing In-Service Teacher

Training
Continuous professional development
opportunities for educators handling disabled
learners would help overcome obstacles
entailed in inclusive education. In-service
training programmes coupled with multiple
components of professional development that
include training, implementation guides, and
classroom materials, instructional coaching,
and performance feedback for teachers are
vital. Workshops to equip teachers with
practical skills on instruction and on alternative
forms of evaluation, classroom management,
and on how to adapt the curriculum will
certainly assist in changing behaviors and
perceptions of educators.

Use of Information and

Communications Technology
The use of technology for differently abled
students has tremendous potential in alleviating
particular problems associated with specific
disabilities. Distance learning should be made
accessible to allow students with disabilities
to continue living at home while studying,
share documents, exchange ideas and make
presentations. Technology can also assist
students with intellectual visual impaired
disabilities, to follow educational courses via
digital and audio libraries, access material,
content and resources via the Internet.
A close consideration of these strategies will
certainly help secure a future for Sri Lankas
children with special needs and combat certain
limitations in promoting inclusive education.

33

World Cancer Day

Prevention is better
than Cure: A Role for
Everyone to Play

per cent by 2025, there has been a call for action in 9 targets (Figure 1)
including universal accesses to screening and early detection for cancer,
which is the focus of this article.

Incidence of Cancer in Sri Lanka and Causes

In Sri Lanka, the number of cancer patients has steadily risen in the past
few years to an extent where it has become the second highest cause of
hospital deaths in the country. According to the recently released data by
the National Cancer Control Programme (NCCP), this trend is observed
from 1985 onwards, as depicted in Figure 2. In 2009, deaths due to
cancers amounted to 11,286, an increase of 377 observed from 2008.

By Yolanthika Ellepola
The World Cancer Day is observed today, under the tagline We can.
I can. A three year campaign has been initiated by the Union for
International Cancer Control (UICC) from 2016 2018, to create
awareness on how everyone collectively or individually - can play a role
to reduce the global burden of cancer. Recognizing the fact that cancer
affects everyone in different ways, it emphasizes that everyone has the
responsibility to take various actions to reduce the impact of cancer on
individuals, families and communities.
Underlying this formidable task is that nearly 9 million people are likely
to die of cancer in the following year if left unchecked with mortality
increasing to 13 million per year by 2030. China too recently reported that
cancer is a major public health problem in the country; and that chronic
infections, smoking and pollution have contributed to skyrocketing cases
of cancer. According to the World Health Organization (WHO), tobacco use
is the most important risk factor for cancer, while more than 60 per cent
of total new annual cases occur in Africa, Asia and Central and South
America.
A large proportion of cancer deaths in low and middle income
countries have a lower survival rate, largely attributed to delays in
diagnosis leading to advanced stages of the disease. Despite the WHO
incurringapproximately USD 1.16 trillion on cancer treatments every year,
the global battle against cancer will not be won with treatment alone.
Effective preventive measures and a collective effort are urgently needed
to ward off cancer epidemic. In an attempt to reduce cancer deaths by 25

Figure 1: World Cancer Declaration: 9 Targets to be achieved by 2025

Source: UICC, 2014

34

Breast cancer is the most common cancer amongst Sri Lankan women,
accounting to 20 per cent of all cancer cases reported in the island, as
Figure 3 indicates. In the case of men, Lip, Oral Cavity and Pharynx
cancer is the leading type of cancer, and accounts for 20 per cent of
cancers found in Sri Lankan men.
Ageing population, urbanization, lifestyle and behavioural changes, and
lack of physical activity are some of main causes for the rise in cancer
cases reported in the country.

Barriers to Screening and Early Cancer

Detection
Lack of Resources
Both screening and early clinical diagnosis are vital interventions to
control cancer. The primary objective of cancer screening and early
clinical diagnosis through improved awareness and health service
infrastructure and accessibility is to detect cancer early to provide less
toxic and less expensive curative treatment to patients. Unfortunately,
there is a lack of measures undertaken towards promoting awareness,
screening and early diagnosis for cancer prevention, underlying the
dearth of resources and national efforts towards fighting cancer in the
country.

Inadequate Information
Most cancer patients in Sri Lanka seek treatment at advanced stages of
the disease at which point currently available treatments are of minimal
benefit. A study conducted by de Silva
et.al (2008) found that a large proportion of
patients had inaccurate information or was
misinformed of the disease. It was further
revealed that a considerable proportion
of patients obtained information on the
disease from non-qualified personnel such
as relatives and other patients. This signifies
that patients hold inaccurate information and
receives poor clarification on the disease.
The study also highlighted that there were
many misconceptions among patients
on the feasibility of various management
options. Although oncologists were involved
in imparting information on the management
of the disease to a certain extent, a large
proportion of patients were only aware of
how to manage the disease as they went
through the procedure but not at the outset.

While those exposed to better education, family income, healthy lifestyles

and healthcare schemes supported by employers that fund routine
checkups, demonstrate better awareness about cancer, the general
public at large is misinformed at every level of the treatment process.

Recognizing Cancer as a Major Public Health Problem

Sri Lanka is not adequately developed to deal with the increasing
demands of preventive, diagnostic, therapeutic and follow-up care
interventions needed to control the growing cancer epidemic. An
inadequacy of funding to invest in comprehensive national cancer
registries is evident. Thus, current statistics are based largely on figures
from hospital-based registries. However these are often incomplete and
the lack of accuracy is further compounded by the under-reporting of
cancer cases from those who do not come forward for treatment.
Figure 2: Incidence of Cancer in Sri Lanka 1985-2009

18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0

with the Department of Health and NHS England. A key component of the
campaign is working with primary care to support General Practitioners
to spot cancer symptoms earlier and refer patients to secondary care
appropriately. If Sri Lanka can launch a similar campaign, it will not
only motivate medical professionals to be involved in the fight against
cancer, but also nudge patients to screen for cancer. Mass media such
as television, radio, internet, newspapers, magazines, and billboards
could thus facilitate this initiative by educating the general public about
the importance of cancer screening. Talk shows on both radio and
television could be launched to speak about the implications of surviving
with cancer so that the stigmatization attached to the disease could be
reversed.
Given the rise of cancer in Sri Lanka and a shortage of medical supplies,
the Government should approach the WHO for essential medication and
vaccines at affordable costs. For example, Pan American
Health Organization (PAHO) has extended support to Brazil,
Chili and Mexico by providing Human Papillomavirus
Vaccine (HPV), used in the control of cervical and breast
cancers, at affordable prices to be introduced in their
national screening and immunization programs.

Employers could also play a role in promoting cancer

screening at the workplace. Employers can work with
their insurer to ensure that employees Health Risk
Appraisals (HRA) assess screening and provide information
about benefits coverage and resources for screening.
1985 1990 1995 2000 2005 2006 2007 2008 2009
Workplaces can also reduce barriers to screening by
allowing employees time to seek preventive care without
Sources: Annual Health Bulletin 2012; NCCP 2008/09
a reduction in pay or any other employee entitlements
which would decrease both the barriers and the out-of-pocket costs that
Today, both treatment and diagnostics for cancer are expensive and
prevent some workers from getting screened.
difficult to obtain in Sri Lanka. The costs of many targeted therapy
drugs are high. There are a few facilities for cancer prevention,
diagnosis and treatment, with weak referral systems,
Figure 3: Leading Cancer Types in Sri Lanka, 2009
limited access to surgery, radiotherapy and essential cancer
chemotherapeutic drugs. Numerous new drugs used for cancer
unknown primary
treatments are presently unavailable due to inefficiencies
Prostrate gland site 6%
3%
at the National Medicines Regulatory Authority (NMRA).
Breast
Despite hospital authorities requesting for stocks from the
20%
Thyroid gland
Health Ministry, there are delays in registering new drugs and
8%
the renewal of registration of old drugs. The Maharagama
Cancer Hospital has continued to experience a short supply of
approximately 25 varieties of anticarenogenic vaccines since
Colon and rectum
9%
2010. This has compelled patients to purchase such vaccines
Lip,Oral Cavity and
from the private sector at exorbitant prices.
Pharynx

Social and Cultural Barriers

A variety of noneconomic barriers impede the early detection
of cancer. These include cultural and ethnic beliefs and taboos.
Given the inefficiencies in the provision of healthcare delivery,
patients are likely to lose confidence and believe that cancer
cannot be cured. Thus, patients commonly resort to alternative
healthcare and traditional healers. Failure to recognize these
barriers can doom the success of any cancer prevention program.

The Need for Action

Although the government recognizes the impending issues associated
with the prevalence of cancer, there is a vital need for effective cancer
awareness campaigns. For example Be Clear on Cancer is a public
awareness campaign run by the Public Health England in partnership

20%

Trachea,
,Bronchus and
lungs
9%
Oesophagus
11%

Ovary
6%

Cervix Uteri
8%

Source: National Cancer Control Programme, 2009

World Cancer Day is a time to reflect on what each of us can do in

order to take action to make a difference on individuals, families and
the community. As highlighted, it is apparent that cancer prevention
is possible through commitment at all levels - including provision of
vaccines, undertaking health promotion and awareness campaigns;
integration of health services for access to early diagnosis, treatment and
care; as well as supporting development of effective policies and funding
mechanisms as observed in the Latin America.

35

Beat Diabetes
in Sri Lanka:

Too Much Sugar

is Not that Sweet

By Samanthi Bandara

nutrition transition. The harmful effects of this transition

are aggravated by other lifestyle including sedentary types of
entertainment.
In this transition, people tend to consume high energy dense
food (i.e., food with minimal water content, and rich in
saturated fats, trans-fats, free sugar or salt), instead of low
energy dense food (i.e., food rich in water, and fiber content,
and little fat).
Sugar is an important contributing factor to diabetes. While
it is an essential ingredient for energy, its excessive intake
has negative effects. To prevent and control negative health
effects of sugar among adults and children, WHO recommends
reducing daily sugar intake to less than 10% of total energy
intake (optional recommendation is to reduce below 5%). For
Sri Lanka, the recommended sugar consumption is about 25
grams/6 teaspoons of sugar per non-diabetic person per day.
However, an average Sri Lankan consumes 36 grams of sugar
a day. In fact, when a person consumes food from outside, this
amount can more than double.

Managing Diabetes is Costly

Controlling diabetes requires medication throughout life, and even
nursing care for disabled people. Accordingly, a high financial burden
is placed on individuals/families, leading to increase out of pocket
expenditure. Further, an excess burden falls on the national health
systems, and this leads to loss of productivity and substantial burden on
the economy. Therefore, prevention -- early intervention to control blood
glucose levels and other risk factors has higher chance of reducing the
prevalence and mitigating the severity of these conditions.
Figure 1: Facts about Diabetes

In addition, socio- economic status (e.g., aging, education,

income, working environment, living conditions, social life,
etc.) and heredity factors are also positively associated with
diabetes prevalence. Amongst these, advertisements on food
promotion inducing demand for unhealthy food products
such as processed / fast foods can play a major role, in
affecting healthy food habits, particularly among kids. As such,
advertisements can be seen as a driving factor for creating
an obesogenic environment that promotes unhealthy food
choices and minimizes opportunities for physical activities.

Sri Lanka too is seeing an increase in the cases of diabetes. According to recent
statistics by the International Diabetes Federation (IDF), (Figure 1), the prevalence
of diabetes among adults in Sri Lanka is 8.5%. At present, one in 12 adults in the
country suffers from diabetes, which totals to 1.16 million. Over the past five years,
approximately 1 - 1.4% of total diabetes patients have lost their lives due to the
disease.

Contributory Factors
Diabetes is a multifactorial disease, which emerges as an irreversible outcome
of a combination of metabolic and modifiable risk factors. It is mainly driven by
unhealthy diets, insufficient physical activity, obesity, and overweight.
With the pace in globalization and urbanization, peoples dietary patterns have
changed both quantitatively and qualitatively. This is phenomenon is called

36

Opening the Door for

Other Chronic Disease
Relative to non-diabetic counterparts, those who suffer from
diabetes are more likely to suffer stroke, myocardial infarction,
or heart failure, kidney failure and lower-limb amputation, eye
disease (retinopathy) nerve damage (neuropathy), and oral
issues. In addition, mothers with diabetes during pregnancy
have a higher chance of developing many complications for
both mother and baby. Studies find that a fetal exposed to
metabolic abnormalities (high blood glucose) in the womb
carries the same risks of developing type 2 diabetes later in
life.

Even though Sri Lanka has sufficient

resources and technical knowledge in
introducing convenient and nutritious
healthy food stuff, government support
including political interest needs to be
further enhanced

Diabetes can also be prevented by implementing lifestyle modifications

including maintaining an age-appropriate body weight, engaging in
physical activity, and consuming a nutritious diet. However, creating
public awareness about healthy
lifestyles such as through the
Super 8 concept is futile if the
government does not provide
prerequisites for such changes
(e.g., adequate spaces for
exercise and ban on unhealthy
food products).
Health experts recommend
people should opt for natural,
high fiber, and less sugar food.
The main issue here is the lack
of availability, accessibility, and
affordability of such food in the
market. For instance, only a
very few places sell rice/whole
grain flour based products,
and these outlets are limited to
urban areas. Even though Sri
Lanka has sufficient resources
and technical knowledge in
introducing convenient and
nutritious healthy food stuffs,
government support (e.g., trade
and fiscal facilitation) including
political interest needs to be
further enhanced.

In order to lead a healthy life, it is important to choose a

low-energy dense diet fruits, vegetables, grains, lean
meats (skinless meats), low-fat dairy products, and whole
grain foods. While reducing free sugars intake, it is also
recommended to at least consume five servings of fruits and
vegetables a day.

April 7, 2016 marks World Health Day, under the theme Beat Diabetes, with the
aim of scaling up prevention, strengthening care, and enhancing surveillance.
Diabetes is among the four leading Non Communicable Diseases (NCDs) that affects
morbidity, mortality, and disability in the world. It was the 8th leading cause of
global deaths in 2015, and is expected to advance to be the 5th cause by 2030.
Importantly, the low-and middle-income countries are more vulnerable to diabetes
and related deaths.

being implemented. In addition, the Ministry is carrying out essential

interventions in line with the action plan introduced by the WHO-SEARO
for NCDs prevention and control. For instance, these include introducing
8 risks factors through Super 8 concept, establishment of Healthy
Lifestyle Centers (HLCs) at primary health care institution for screening
people, introduction for Package of Essential NCD interventions (PEN) for
primary health care.

Source: IDF Diabetes Atlas, 7th Edition, 2015

What Needs To Be Done?

Prevention and control are two means to address diabetes. As per
the globally agreed targets towards halting the rise of diabetes and
obesity by 2025, increasing access to affordable treatment, including
insulin for those living with diabetes is crucial. It is important to note
that in Sri Lanka, the Ministry of Health prepared the national policy for
NCDs prevention and control about five years ago, and it is currently

In 2015, the government made

a decision to display different
colour labels for beverages,
with a red label to denote high
sugar content, but it is yet to
be implemented. However, a
proposal to hotels/tea shops
to serve sugar with tea/coffee
in a separate container has
seen the light of day. Further,
medical experts have appealed
to different food companies to
align their advertising with the national goals, and to be ethical in their
messages when targeting children. However, this has so far not seen a
positive response.
Finally, we as consumers have a major role to play in the prevention
and control of diabetes. Leading a healthy life style is one way to beat
diabetes. You can try simply by maintaining your weight, engaging in
regular physical activity, and having an eat-well plate. You can start
making this change at your home, as a step towards beating diabetes.

37

Although official statistics on the incidence are unavailable, the

Presidential Task Force established for the prevention of CKD
confirms approximately 20,000 patients are admitted to government
hospitals causing 2,000 deaths annually. The total number of deaths
is underestimated nationwide as home deaths are excluded in death
registries.

A cross sectional study conducted in 9 provinces by Jayasekera et.al

(2015) confirmed a remarkably higher number of CKD patients in
NCP alone, four fold greater than in other provinces. The study further
highlights that although other provinces were also affected, the etiologies
of the disease were primarily diabetes (30.6%) and hypertension (13.2%).
According to hospital information, CKD was found to be widespread
in areas where agriculture is the main occupation and are unrelated
to known causes commonly identified with kidney diseases such as
Diabetes, Hypertension or obesity. Currently, the root cause of the disease
is under investigation and subject to controversial and inconclusive
studies including the WHO report (2012) on the subject.

World Kidney Day 2016:

What More Can Sri Lanka
Do To Save Lives?

CKD in Sri Lanka

The outbreak and prevalence of CKD among
male farmers in the age category of 15-70 years
engaged in rice cultivation in the North Central
Figure 1: Prevalence of CKD in Sri Lanka

Burden of Disease

By Yolanthika Ellepola

Financial Costs

The World Kidney Day this year (10th March) is marked under the theme Kidney Diseases and
Children, Act Early to Prevent It. Acknowledging the fact that kidney diseases affect millions
of people worldwide including many children, the global awareness campaign is aimed at
encouraging and facilitating education, early detection and a healthy life style in children, from
birth, so that they are free from such health issues during old age.

Despite the fact that CKD is rising at an alarming rate, the exact extent
is difficult to determine given that many people may not receive hospital
treatment. The slow progressive disease with patients seeking treatment
at late stages when dialysis or transplantation is required leaves a high
economical cost to the patients, family and the government, which incurs
a colossal sum for the management of renal diseases. Presently, there
are a mere 185 renal-dialysis machines in government hospitals. Due
to limitations in dialysis machines and kidney specialists nephrologists;
dialysis is provided to patients only twice a week. Although approximately
4-5% of annual health budget is spent on the management of patients,
many more dialysis machines and other equipment are in need to meet
the growing demand.

Diabetic nephropathy and high blood pressure are the leading cause of Kidney Diseases in
Australia, Europe and North America. More than 661,000 Americans have kidney failure. Of these,
468,000 individuals are on dialysis and approximately 193,000 live with a functioning kidney
transplant. At present, 1 in 3 American adults are at risk of developing kidney diseases. In many
Low and Middle Income countries such as India, Sri Lanka, South American and Middle Eastern
countries, environmental pollution, pesticides and other chemicals, and unregulated food additives
have been attributed as causes of Chronic Kidney Disease (CKD).
In Sri Lanka, the cases of children affected by kidney diseases are low, while cases of CKD are
rampant. Therefore, this article predominantly focuses on the incidence of CKD, burden of the
disease, and highlights the importance of appropriate measures for early detection.

The Presidential Task Force established for the prevention of CKD

confirms approximately 20,000 patients are admitted to government
hospitals, and 2,000 deaths are reported annually
38

While the underlying causes for the disease are unknown and yet to be
identified, it is widely believed to be an environmentally induced disease.
Exposure to low levels of cadmium through food and to nephrotoxic
pesticides are considered to be underlying causes. Cadmium levels in
soil and the consumption of illicit alcohol and tobacco in endemic areas
are observed to be higher compared to non-endemic areas. Several
studies further indicate high levels of cadmium, arsenic and lead were
found in some samples of phosphate fertilizer and weedicides. Given
that disease related deaths are rising exponentially, CKD has currently
become one of the most burning environment related health issues of
national concern in Sri Lanka.

Source: Epidemiology Unit, Sri Lanka

Province (NCP) was first recognized in the early

1990s. While the cases were predominantly seen
in males, they are now also apparent in both
females and children. The disease was first found
in Padaviya, is spreading to neighboring districts
in the North Western, Eastern and Uva as well as
Northern and Central Provinces (Figure 1).

Social Implications
CKD is argued by some as a development induced disease prevalent
in areas with heavy agrochemical use. The social epidemiology of the
disease should be closely studied for effective interventions including
early diagnosis and raising public awareness. The vast majority of
patients are low income groups that have to forego some of the
procedures and medications that require payment. Dialysis patients
are compelled to travel bi weekly long distances to obtain medication.

The high cost of medical treatment leaves families to mortgage and

sell assets, request for kidney donations from the public at end stage
renal failure. Gunatilleke (2012) found that a kidney patient had to spend
approximately LKR 10,000 for dialysis and LKR 800,000 for a kidney
transplant. Since patients waited in agony for many years in search for a
donor with a matching kidney, the government in 2010 was compelled to
change policies to permit kidney donations by non-relatives. In addition,
when a breadwinner develops kidney disease and can no longer work,
the entire family runs into financial debt. The sudden disruption to
livelihood following the onset of the disease, moral panic concerning
the causes of the epidemic, disruption of childrens education, stigma
encountered by the patients and their families, and a lack of support
mechanisms for the affected families are some of the consequences.

Further Action
The Government has indeed shown continued commitment and support
towards prevention and control of CKD. Provision of clean drinking water
to 13 schools and villages in Northern, Eastern, and Uva Provinces;
promotion of organic farming of native Sri Lankan heirloom rice; banning
of certain agrochemicals are strategies presently implemented.
Transparent Flow of Data: Despite the progress made, the multifaceted
nature of this problem and the significant data gaps call for more
comprehensive research, and data-driven public policy discussion.
Continued strengthening of disease registries and standardization
of surveillance reporting will provide open and transparent research
exchanges.

Integrating Vital Institutions: Supporting institutional arrangements for the

implementation of inter- sectoral coordination, monitoring and evaluation
of pesticides and fertilizers are essential. Strengthening health care
service networks with models that ensure quality of care and patient
safety, availability of human resources, health technologies for prevention
and control, and, adequate financing are of vital need. In addition,
surveillance systems must be reinforced in order to assess disease
trends and intervention impacts so that funds can be channeled where
required.

Improving Public Awareness: Initiating health programmes to educate

farmers, vendors, and school children on the adverse health effects
of agrochemicals and the importance of applying safety and control
measures when using them would to a certain extent reduce the
incidences. For example, El Salvador is burdened with CKD in agriculture
communities. As such, Pan America Health Organisation (PAHO) is
committed to improving the social, environmental, occupational, and
economic conditions of the affected communities and to strengthen
surveillance and CKD-relevant health services.

Let us therefore take the initiative this year to advocate for more
enhanced and efficient infrastructure to better communicate and
educate the wider public on CKD; and endorse for the introduction of a
multidisciplinary care system for prevention, control and management
of the disease to ensure effective service delivery. Resources should
be mobilized and prioritized for sustainability of actions to promote
evidence-based public policies, and to reach the high level of
commitment to mitigate the health, social, and economic consequences
of this disease.

39

ARTICLE TO MARK WORLD OCEANS DAY 8TH JUNE 2016

Healthy Oceans, Healthy Planet:

Cleaning up Marine Debris from
Natural Disasters
By Athula Senaratne

The World Oceans Day was marked, under the theme Healthy Oceans,
Healthy Planet; at a time Sri Lanka is striving to recover from a major
natural disaster. While natural disasters cause sudden surges of ocean
debris, taking tonnes of garbage from land into the ocean, it is much
worse during floods, especially when populated areas adjoining the
coastal belt are affected - as it did during the recent floods in Sri Lankas
Western Province. As the country is still struggling to overcome from the
trauma in the wake of the disaster, the serious impact this has on oceans
is likely to be neglected, as more immediate problems on land naturally
take priority. In the usual havoc created by scattered debris after floods,
one might even be pleased if all of it gets washed off to the ocean, a
course of action often taken for granted to remove garbage and waste
from coastal areas. However, such thinking may be counterproductive,
causing long-term damages to the marine environment, leading to a
situation of Sick Oceans, Sick Planet, the opposite of the todays theme.
Marine pollution due to disasters that occur in the ocean such as ship
accidents, oil spills, chemical spills, etc., have been well recognized and
many countries are prepared to face these at least to a certain level.
Similarly, there is also awareness on marine debris from ships and
various land sources. However, comparatively, the knowledge of marine
pollution caused due to natural disasters on land areas is somewhat
limited. Studies show that natural disasters that occur on land can lead
to a heavy collection of ocean debris. Disasters such as hurricanes,

40

tropical storms, and tsunamis are usually associated with high winds,
heavy rains, storm surges, and flooding that can pull large amounts of
land debris into surrounding seas. Such debris include small to large
structures, household items, and garbage washed off from flooded
areas. Observations on such marine debris have been made after many
reported cases such as Hurricanes Katrina and Rita, and cyclone Sandy.
National Oceanic and Atmospheric Administration (NOAA) of USA has
carried out such studies on marine pollution associated with disasters.
The 2011 Tsunami in Japan and Fukushima disaster captured world
attention due to the possible involvement of radiation contaminated
marine debris. According to the estimates of the Government of
Japan, the disaster brought over 5 million tons of debris into the
sea. Sudden influx of debris flows caused by disasters could lead to
various unfavourable outcomes such as public safety and health issues,
problems for navigation due to obstruction of navigation channels and
threats to marine biodiversity and ecosystems. Studies have shown
that significant amount of debris breakup into parts and get sunk in the
sea, mostly in nearshore areas. However, there is floating debris that
could take different paths. Part of it is washed ashore sooner or later.
Observations indicate some floating debris may get carried over by
waves, scattering over the ocean, sometimes ending up in distant places.
Depending on the nature of float, the speed and distance travelled may
vary. For instance, some debris generated in Japans Tsunami disaster

has been reported in West coast of USA. Sometimes debris could get
caught up in a circular ride of currents (e.g., North Pacific Subtropical
Gyre), ending up in garbage patches where debris has accumulated.
Some materials in the disaster debris could stay in the environment
without being degraded for long periods of time (e.g., some types of
plastics).
Understanding about post-disaster surge of marine debris appears to be
limited in Sri Lanka. The only occasion that it could have captured the
public attention was the 2004 Tsunami. However, in the midst of a large
death toll, tremendous property damage, and large-scale displacements;
it escaped the public discussion that it deserved. The recent floods
in the Western province, especially in the Kelani River closer to its sea
entrance is likely to have resulted in some influx of flood debris to the
sea. This has so far not received sufficient public attention. Mitigating
disaster debris is a challenge for public agencies. It needs monitoring of
debris movement and accumulation of them. If accumulated debris is
causing obstructions to navigation channels or usual habitats of marine
animals, actions should be taken to for their removal. Establishing
procedures for reporting of debris washed ashore is necessary and this
should be followed up with a beach clean-up. Some countries have
resorted to calling for voluntary public support for reporting and cleaning
up. Whenever possible, recycling of some debris may be the best course
of action (e.g., metal cans, plastics). To achieve success from such
measures, there should be good awareness and education among the
public.
Sudden influx of marine debris from disasters is a problem that involves
inland areas, coastal zone and the marine environment. Hence, the
problem requires an integrated approach that combines all three
zones (land, coastal zone, and sea) of environment. Sri Lanka has
introduced the Marine Pollution Prevention Act (MPPA) in 1981 along
with the Coast Conservation Act (CCA) passed in the same year, just
one year after passing the National Environment Act (NEA). These three
acts are responsible in overcoming pollution problems in the ocean,
coastal zone and inland areas, respectively. Along with these Acts,
three national agencies, namely, the Marine Environment Protection
Authority (MEPA), Coast Conservation Department (CCD) and the Central

Environmental Authority (CEA) also were formed. This system was

further strengthened with the introduction of Disaster Management Act
(DMA) in 2005, establishing the Disaster Management Centre (DMC)
as the implementation agency. Hence, the necessary legal framework
and institutional arrangements are already in place to find an integrated
solution. What is needed is a coordinated effort by the relevant agencies
and effective enforcement.

The Indian Ocean Rim Association (IORA) whale and dolphin

watching workshop was held in Colombo in February, under
the theme Building Sustainable Whale and Dolphin Watching
Tourism in the Indian Ocean Region. The Workshop brought
together governmental policy makers and scientists to enable
IORA Member States to share experiences in managing whale
and dolphin watching tourism and gain access to international
whale and dolphin watching expertise. The workshop was
supported by the Australian Government - Department of
the Environment and was organized in partnership with the
Government of Sri Lanka the Ministry of Foreign Affairs, the
IORA Secretariat, International Whaling Commission (IWC),
Murdoch Universitys Cetacean Research Unit and the IPS.

41

Better Water, Sustainable

Agriculture and Better Lives
for Sri Lanka
By Chatura Rodrigo and Athula Senaratne

March 22nd marks the World Water Day 2016 under the theme Water and Jobs.
The theme focuses on how enough quantity and quality of water can change
workers lives and livelihoods - and even transform societies and
economies. In this article to mark the day, IPS Researchers Chatura
Rodrigo and Athula Senaratne explore the challenges faced by
agricultural livelihoods, which employ a majority of Sri Lankas rural
sector and identifies measures to overcome such challenges.
Water is vital in many forms of livelihoods. In agriculture too, theres
a tremendous need for the direct access to water. Water in terms of
quality and quantity has a great impact on agricultural production. In Sri
Lanka, agriculture accounts for a majority of employment. Better quality
water for agriculture in adequate amounts has been a main concern
in the country since ancient times, leading to various developments
in water resources management. A sufficient supply of quality water
leads to successful harvests, which results in good farm income and
increased quality of life. However, the quality as well as the quantity
of water for agriculture now seems to be reducing, threatening the livelihoods of
farmers. Therefore, it is important to understand the water quality and quantity
related challenges in agricultural livelihoods and identify measures to overcome
these challenges.

Decrease in the Water Quantity is a Major Concern

Demand for agricultural water is higher than industrial and municipal water
demands. Figure 1 shows the fresh water withdrawals in Sri Lanka. Approximately,
87.34% of freshwater withdrawals are used for agricultural purposes.
The share of agricultural water demand is higher in Sri Lanka when compared to
many other countries in the world. Figure 2 shows that Sri Lankas water demand
for agriculture is only second to India among the selected countries. The reasons
for the increase in demand for water could be the low efficiency of water use in
farms; poor adoption of water saving techniques; high losses associated with
storage, distribution and on-farm utilization of water; and the lack of incentives for
conservation due to free state supply of irrigation. In most developed countries, the
adoption of technological advances and market-based strategies has reduced the
water demand for farming.
According to current statistics, the total cultivated area in Sri Lanka is estimated at
1.86 million ha. About 632,000 ha of the area is irrigated and the rest is rain-fed.
Irrigated agriculture mainly comprises of major irrigation schemes. In addition, there
are numerous minor schemes, which can be identified as semi rain-fed systems.
They include over 15,000 village tanks scattered across the countrys dry zone areas.
Irrigated agriculture received a great deal of attention of policymakers over the
last several decades, which culminated in the accelerated Mahaweli Development
Programme in the mid-1980s. Many steps have been taken to rehabilitate and
restore ancient irrigation systems.
A majority of irrigated land in the country is used for paddy cultivation. The demand
for water is high in paddy cultivation compared to many other crops. Water is
essential for the preparation of land, and the planting and maintenance of the
crop throughout the planting-harvest cycle. On average, the water requirement for
irrigated rice is between 900-2250 mm per day. By 2025, paddy cultivation area is

42

projected to increase by 28%, with the annual growth in the

cultivated area of paddy rising to 1077 ha, compared to 836
ha in 1991. The dry zone is the main paddy producing area in
the country and some parts of this area will face an absolute
scarcity of water by 2025. Furthermore, research suggests
that paddy production will increase by 10% by year 2025 and
that additional amount will be totally irrigation-based.

There are many incidents of groundwater contamination reported from

various sources that reduce the amount available for agricultural and
domestic purposes. High concentrations of arsenic such as 35mg/L (WHO
standard 10mg/L) have been found in dug wells at a few locations in
the country. Sewage pollution has increased the nitrate concentration
up to the range of 122 to 174 mg/L in some areas of Point Pedro.

There is increasing evidence to suggest that water scarcity

is likely to be aggravated further by the inevitable reality of
climate change. The Intergovernmental Panel on Climate

Figure 1: Water Demand by Sector

24.53%

sodic water can be used in agriculture with the application of new

technologies. However, such strategies should be compatible with
country-specific needs and development agendas. With the emerging
technologies and private sector involvement, agricultural water
management has become increasingly complex. Countries such as the
USA, China, Japan and Germany appear to have placed more faith on
larger investments and modern technologies, while
developing countries are focusing on adopting an IWRM
approach.

Agricultural water withdrawal as a

% of total withdrawal
Industrial water withdrawal as a %
of total withdrawal

6.22%
6.42%
87.34%

Municipal water withdrawal as a %

of total withdrawal
Fresh water withdrawal as % total
renewable water resources

Source: Aquastat_Database

Change (IPCC) suggests that climate change affects all

components of freshwater systems. As a result, water
quality and availability will be major issues in the future.
The established patterns of rainfall have changed and the
distribution of rainfall in different parts of the country also
appears to be undergoing changes. While droughts cause
delays in planting seasons and are responsible for crop
damages - floods have been destroying mature crops awaiting
harvest.

Water Quality Cannot Be Ignored

Not only the quantity but the quality of water also affects
crop growth and harvest, which also determines the farmer
income. Both surface and ground water sources have been
affected by various pollutants and other contaminants reducing
the quality of water available for agricultural livelihoods as
well as domestic use of the farming community. The surface
water contamination in Sri Lanka is mainly due to agriculture
runoff, improper disposal of sewage; unmanaged waste from
industries, livestock, etc., and inadequate sanitary facilities.
The agricultural runoff, which comes from non-point sources,
consists of pesticides, nutrients, suspended solids and organic
material that makes the water unusable for agricultural
purposes.
Groundwater is available from both shallow and deep
aquifers. Shallow aquifers; generally located less than
50 feet below soil surface are the most intensely utilized
aquifers, and have a higher possibility of being exposed
to ground water contamination. Higher concentrations of
heavy metals, nutrients such as nitrate and phosphates
from agrochemicals and fertilizers, brackish water intrusion
as a result of uncontrolled abstraction of groundwater for
domestic and agricultural use, pathogenic bacteria from pit
latrines are among the main causes of ground water pollution.

Eppawla and Anuradhapura reported the highest fluoride

concentration as 9mg/L while 15% of tube wells
located in Polonnaruwa district have shown fluoride
concentrations above 2mg/L. Elevated concentrations
of chloride, nitrate and potassium are observed in many
irrigation wells in the Kalpitiya and Jaffna Peninsulas,
with nitrate concentrations of up to 40 mg/L due
to higher consumption of agro chemicals in crop
cultivation. About 40% of dug tube wells for domestic
and agriculture usage during last decade are abandoned
due to contamination with iron, manganese, fluoride and
subsidence of water level.

One innovative concept is virtual water. Virtual water

refers to the hidden or unobserved flow of water when
commodities are traded from one country to another.
The virtual water content of a commodity is the volume
of water required to produce the commodity, which
is measured at the original place of production. This
contains the quantity of water used for that commodity
at various stages of the production process. Therefore,
if a country with scarce water resources is producing
a particular commodity, which requires a large water
quantity, then they could potentially import that
commodity from another country that has relatively less
water issues, and save the water needed to produce that
commodity for alternative purposes that can be achieved
more efficiently.

Figure 2: Agricultural Water Demand for Some Significant Agriculture Based Economies

40.22%
87.34%
65.68%

Managing Agricultural Water to Ensure

Sustainable Livelihoods
64.61%

Country

Sri Lanka

India

China

Japan

USA

90.41%

Water management in agriculture involves many

different functions that are also closely associated with
Source: Aquastat_Database
the management of other natural resources. Accordingly,
water management depends on the actions of different
Both point and diffused sources of pollution can affect the quality of
users of water and other natural resources. For example, water
water. Typically, 50% to 90% of pesticide pollution in ground and surface
management for agriculture from an irrigation tank largely depends on
water comes from point pollution sources in agriculture - for example,
the management of the catchment area of the tank. The actions of users
spillages, incorrect cleaning of spraying equipment or illegal disposal
of the catchment area will affect water storage; thereby determining the
of leftover spray solutions. Diffused water pollution through pesticides
availability of water for agriculture. Therefore, integrated approaches are
necessary for managing scarce water resources for agricultural and other occurs due to spray drift, surface runoff, drainage losses or leaching to
groundwater. These incidents can be avoided through adopting Good
competing purposes (e.g., domestic, industrial). Such approaches are
Agricultural Practices. In all regions of the world, avoiding point pollution
broadly identified as Integrated Water Resource Management (IWRM).
sources is the first and most effective step to maintain water quality.
Implementing best practices, can evade pollution and a significant
Water-scarce countries can increase the efficiency of their water
improvement of water quality in agricultural catchments can be achieved.
management practices through new technological/institutional strategies
Adopting appropriate risk reduction measures such as establishing
and water conservation. They can use more efficient, economical, and
vegetated buffer strips alongside surface water bodies can further
environmentally-friendly approaches to prevent water pollution. It has
reduce risks.
been demonstrated that naturally unusable water such as saline and

43

Transforming Manpower
Employment to Decent Work of
Greater Quality
By Priyanka Jayawardena

I cant build a house.

I cant afford to go
for a family wedding.
We are cornered by
society.

This is how a manpower worker was voicing the uncertainty of his future. These workers and their
families lack stability and security to make long-term decisions and plan their lives due to the
uncertain nature of their jobs and low wages. The discrepancies faced by manpower workers are
evident by protests carried out by them in Sri Lanka. With the aim of exploring ways to transform
manpower employment to decent work of greater quality, this article explores some hidden
information in the manpower business, based on a recent IPS study titled Why People Choose to
Participate in Non-Standard Employment in Sri Lanka.

Manpower worker attached to a State Bank

Agency or sub-contractors enter into agreements with companies where they supply they cannot afford to stay at home. Some in the private sector
work long hours to earn more.
labour, but the terms and conditions of these agreements are not disclosed to the
manpower workers.
I get paid on monthly basis, a daily wage of Rs. 600 per
shift. My normal shift lasts 8 hours per day. But I have
I didnt have to sign a written contract when I was recruited. All I had to
the option of working another full shift (8 hours) and
do was submit an application form before starting work.
obtaining Rs. 1200, but this would mean that I have to
- Female manpower worker, Biyagama FTZ
work 16 hours at a stretch.
-- Female manpower worker, Biyagama FTZ
Some manpower employees work continuously at a particular factory while some
are hired on a daily basis. These daily hired workers are transferred from company
These manpower workers are in a vulnerable situation; they do
to company, depending on the available vacancies. This is entirely handled by the
not receive private sector social security benefits such as EPF,
manpower agency.
which even temporary workers are entitled to. It is revealed
that although deductions are made for EPF and ETF, there is no
The agency hired employees receive their wages through the manpower agency
transparency and most workers are unaware whether they are
after their commission is deducted, and are not given salary slips. Companies
even registered for EPF. They are afraid to voice their opinion as
prefer hiring manpower workers as it is convenient for them as there are no
it would jeopardize their employment. Any protest could lead to
direct obligations towards these workers. Most of the manpower workers are
a transfer or losing the opportunity to work at that company.
either from rural areas, less educated, or are school dropouts who have limited
job opportunities. Therefore, in most cases, these manpower workers do not
They also do not have any upward mobility and hold the
pay attention to their rights as they are helpless and have no other means of
same position for many years, without any incentives. The
employment.
nature of such employment not only negatively impacts these
employees but also the companies that hire them. Lack of
Public Sector Manpower Workers
accountability of these employees towards the employer, can
In recent times, many government service establishments too have begun widely
result in low quality production. Thus, an overwhelming number
recruiting manpower workers. For instance, manpower agencies supply labour to
organizations such as Sri Lanka Telecom (SLT), state banks, Ceylon Electricity Board of manpower workers in a company can lead to long-term
impacts in productivity, efficiency and economic growth. These
(CEB), the Water Board and Central Bank. A majority of them are recruited as office
assistants or janitors. For instance, in a leading state bank, 95% of office assistants workers also affect the permanent staff as they lose their
are recruited through manpower agencies. These workers are under the impression bargaining power and dilute their rights.
that they are employed at a reputed institute; however, in reality they are supplied to
these companies by manpower agencies.
Manpower workers are also known to be treated differently to their permanent
counterparts. For example, normal working hours in the public sector is 8 hours
but these workers have to work 9 hours per day. In the public sector, agency hired
workers are permitted only 7 days paid leave for the year. These workers are not
permitted 14 days annual leave, where an employee is entitled to under labour law
[Shop and Office Employees (Regulation of Employment and Remuneration) Act,
1954)]. Further, it is revealed that, to avoid the need to pay gratuity or the chance to
be made permanent, these manpower workers are transferred to a different agency
even without their knowledge.

Why Should We Worry About Manpower Workers?

Source: Daily Mirror.lk

Who are Manpower Workers?

Workers who are not directly hired by the organization they work for, but are hired by third party
agents or sub-contractors are referred to as manpower workers. Usually it is a disguised or
ambiguous employment relationship. They lack access to social protection, receive low wages,
and have substantial obstacles in joining a trade union or bargaining collectively. It is a part of a
global business strategy practiced by employers, to shift risks and responsibilities onto workers.
Manpower workers are not given a contract letter either by the company they work for, or the
manpower agency. It is a precarious work arrangement, and raises serious concern as it is often
unclear who is responsible and accountable for the rights and benefits of these workers. Due to the
ambiguous nature of manpower employee contracts, there is limited data available on the matter.

Recruiting Employees through Manpower Agencies

For around 10-15 years, it has been common practice in the private sector to use manpower
agencies to recruit employees to fill low-skilled, temporary and supplementary jobs (janitors,
security guards, etc.). This has now gradually moved into main business activities of the company
-- machine operators, cashiers, and sometimes even managerial levels.

44

Manpower workers are discriminated. The downside of manpower employment

is the lack of protection and the exploitation of labour. These agency hired workers
do not receive equal rights, despite handling similar workloads as their permanent
counterparts.
My starting salary was Rs. 12,000, after 4 years of working I receive only
Rs. 15,000. But permanent counterparts of the same position are paid over
Rs. 50,000.
- Manpower worker attached to a State Bank
Permanent staff members receive other perks like bonuses, office trips,
etc. As a manpower worker, I only get food and tea, which is also deducted
from my basic salary.
- Female manpower worker, Biyagama FTZ
Most agency hired workers in the private sector, are not given paid leave. They are
allowed to take leave at any point, but will have to forego that days salary. Thus,
most such workers are compelled to report to work even when they are sick, as

What Should Be Done?

It is difficult to completely eliminate this type of labour as it has

been integrated into the labour market. One option towards
transforming manpower employment to decent work is to
regulate manpower business, while safeguarding rights of the
workers.
Manpower workers are not protected by law; it is important to
have regulatory mechanisms to protect their rights, including
equality of employment conditions, and social protection.
Therefore, as a first step, issuance of employment letters to all
manpower workers should be made compulsory for companies
that use such hired labour. Also, the government can play an
exemplary role by ensuring the rights of manpower workers
attached to state enterprises in terms of job security, wages,
social security and other benefits, which permanent employees
are entitled to. In addition, government enterprises should take
immediate steps to stop recruiting agency hired workers for
main business activities.
The use of temporary workers must be limited to legitimate
needs for example, to meet the seasonal demand of
businesses, to provide supplementary services such as security,
and janitorial services, etc. The contract period of seasonal
workers should also be limited to a maximum of 6 months.
The plight of manpower workers points to the crucial need to
address the issues they face. The effective implementation of
these measures will be a step towards transforming manpower
employment to decent work of greater quality for these
employees.

45

World Elders Abuse

Awareness Day:
Sri Lankas Greying
Economy - An Impending
Problem
By Yolanthika Ellepola

population projections, at present, life expectancy of Sri Lankan females

at birth is 77.2 years and males 69.2 years. At the same time the
proportion of working age population will progressively decreasing in the
coming decades, thus abuse to elders will become a significant problem
due to increased life expectancy.
There is an absence of routine surveillance system related to elders and
neglect in Sri Lanka and official statistics unfortunately do not capture
the extent of abuse faced by elders. Thus, the magnitude of the issue
is under reported and elders are left voiceless. A recent cross-sectional
descriptive study at the North Colombo Teaching Hospital revealed that
38.5% of elders over 60 years attending the out-patient department were
at high risk of abuse. Either physical, psychological, verbal or neglect
was reported by 45% of elders while 5.6% of elders surveyed were
physically abused. Screening tests revealed that the study population
was vulnerable to psychological and financial abuse. According to the
most recent National Report on Violence and Health in Sri Lanka, physical
abuse is more likely to take place in institutions than at homes although
independent empirical studies highlight that none of the victims were
from institutions.
Figure 1: Empirical Study on Prevalence of Abuse faced by Elders in Sri Lanka

ABUSED

Underlying Causes
Evidence portray that unhealthy past relationships between the informal
caregiver- adult child and an older parent, characterized by actions
of child abuse, domestic violence, inappropriate discipline, physical
punishment and domestic violence could lead to elder abuse. Hughes
(1997) identifies the mental health status of older people and the history
of violence before caregiving had commenced as two main risk factors
for elder abuse.
Stress experienced by caregivers in fulfilling multiple roles in fulltime employment, raising children as well as taking care of an older
person could be extremely stressful to the caregiver. Although it is with
good intentions that care is provided, stress induced by other family
commitments may result in verbal and physical abuse towards the older
care recipient.
Studies onviolence against older people in domestic settings have found
that aggressors are more likely to have mental health and substance
abuse problems. Older people suffering from a cognitive disorder such
as Alzheimers disease and dementia may behave violently towards their
caregiver especially when the disease progresses. Violent behaviour
and failing to diagnosis the cognitive disease increases the incidence of
elder abuse. Vulnerability to elder abuse also exists amongst older people
with a memory impairment, which leads to their dependence on the
perpetrator.

Implications for Health Professionals

PHYSICALLY
EMOTIONALLY
FINANCIALLY

ELDERLY
FEMALES

ELDERLY
MALES

9.8%
28.3%
18.5%

4.1%
20.6%
75.3%

Source: Perera et.al (2010)

The United Nations marks 15th June as the World Elder Abuse
Awareness Day. Abuse of older people is either an act of
commission or of omission, which may be either intentional or
unintentional. The abuse may be physical, psychological, financial or
other material maltreatment. It is increasingly seen as a problem
that is likely to grow as many countries rapidly experiences an
ageing population. With a global population of people aged 60 years
and older more likely to double, from 841 million people in 2013 to
more than 2 billion in 2050, older persons are projected to exceed
the number of children for the first time in 2047.
Asian societies such as India, China, Japan and Singapore have
reported higher rates of elder abuse compared to high income
countries in the West. Hospital based studies from China and India
found that 20% - 25% of Indian and Chinese elders were financially
abused. It may be postulated that traditional Asian families are
hierarchical in nature, where authority and structure in the family
is defined by position and determined by age and gender. This then
leads to the expectation that children are to live with and provide for
elders later on in life. It is not a choice but rather a responsibility they
are expected to fulfill, as Asian cultures have traditionally assigned
the role of caregiver to adult children. However, when adult children

46

are forced to live up to these ingrained responsibilities or obligations,

the burden felt may cause them to turn around and abuse elders
instead, to relieve some of their tension and stress. It is increasingly
apparent that abuse against elders continues to remain a private
matter, well hidden from public domain. Although globally statistics
on the extent of abuse on elderly population is scant, population
based studies have predicted that approximately 4% to 6% of elderly
people have experienced a degree of maltreatment at home.
Elder abuse is a global social issue, which affects the health and
human rights of older persons and deserves the attention of the
international community.

Abuse of Elders in Sri Lanka

Sri Lankas ageing population is among the oldest in the nondeveloped world and also one of the fastest aging countries in the
world. The elderly population (defined as people above the age of
65 years) of 1.7 million in 2001, is expected to rise to 3.6 million
by 2021, and will comprise 16.7% of the total population. By 2041,
one in every four Sri Lankan is expected to be elderly. According to

Gender has been a defining factor in elder abuse on the grounds that
older women may have been subject to oppression and economically
disadvantaged all of their lives. A study by Perera et.al (2010) (Figure
1) in the Galle Medical Officer of Health (MOH) area found that a higher
prevalence of abuse is reported among females. This is not unexpected
as females tend to live longer and are more likely to be dependent on
their caregivers or children. Although the prevalence rate in this study
cannot be taken as the prevalence rate for Sri Lanka, it is an indication of
similar rates in other Asian countries.
Financial abuse was the most common type of abuse reported. Some
caregivers may suffer economic difficulties since they are compelled to
resign from their jobs to care for their elderly relatives. These caregivers
may then develop feelings of resentment because they have lost their
source of income. Those parents with large families are at risk of
psychological and financial abuse. This is in contrary to the traditional
expectation that larger families would protect elders since they would
have more to care for them. Given that most people expect to reside
with their children and grandchildren, changing socioeconomic realities
have resulted in young families adopting a nuclear family concept
excluding older elders. Although financially well off older people could
be vulnerable to financial abuse, frail older people with fewer financial
resources are at further risk of neglect.

Since Elders abuse is unreported most health professionals are

ill-experienced to screen for elder abuse and detect vulnerabilities.
Health professionals may be reluctant to report elder abuse because of
subtlety of signs, victim denial, and lack of knowledge about reporting
procedures. Other reasons include concern about losing physician
patient rapport, concern over potential retaliation by perpetrators and
perceived contradictions between mandatory reporting and a providers
ability to act in the patients best interests. A common misconception for
reporting elder abuse is that convincing evidence is needed to report.
Therefore, given that elder abuse victims often interact with health
systems, increased screening and treatment should be instituted
in healthcare settings. Primary care outpatient practices, inpatient
hospitalization episodes, and discharge planning and home health could
play pivotal roles in identifying potentially unsafe situations that could
jeopardize the safety and well-being of older adults. Early detection and
interventions, such as incorporating effective treatment of underlying
problems, providing community-based services, and appropriately
involving family, may help delay or prevent elder abuse.

What can be done?

A strong sense of community, spirituality and resilience, loyalty to family
and an appreciation of the elderly are factors that will mitigate abuse of
older people. A strong sense of community can thus be created through
the extended family, the religious community and neighbours, a source
of support during times of distress. Education of communities on the
aging process, promoting the needs and rights of older people, and
improvement in the coordination of policies are some of the initiations
that could be implemented to help constrain the extent of abuse on
elders.

47

South Asia: Shaping the New

Paradigm for Growth Conference

Discussion on Maritime Silk Route

and One-Belt One-Road initiative

IPS Research Fellow, Dr. Janaka Wijayasiri

made a presentation on Air Connectivity
in South Asia at the Conference on South
Asia: Shaping the New Paradigm for Growth
organized by the SAARC Chamber of
Commerce and Industry (CCI) in June 2016.
IPS also signed a MOU with the SAARC CCI on
the sidelines of the conference to establish
a strategic partnership to jointly conduct
research, policy analysis, capacity building,
outreach and advocacy for the next three
years.

A delegation from the Shanghai Academy of

Social Sciences visited the IPS on 17th June
2016, to discuss China-Sri Lanka Economic
Relations with especial emphasis on the
Maritime Silk Route and One-Belt One-Road
initiative.

IPS
NEWS
Global Production Sharing:
Implications for Trade and
Investment

Prof. Premachandra Athukorala delivered

a lecture on Global Production Sharing
and Trade Patterns: Implications for
Trade and Investment Policy, at the
IPS Auditorium, in February focusing on
global production sharing and production
networks, opportunities for export-oriented
industrialization, trends and patterns of
global production sharing, Sri Lanka in global
production networks: missed opportunities
and some promising signs, and discussing
policy options.

48

National Workshop on Food Value

Chain Development

Taxation Policy and Revenue

Performance in Sri Lanka

Relevance of the Urban

Planning Guidelines

World Consumer Rights Day Forum Regional Workshop on Labour

2016
Market Research

Prof. Mick Moore, Political Economist

and Professorial Fellow at the Institute of
Development Studies at Sussex, UK, delivered
a lecture on Taxation Policy and Revenue
Performance in Sri Lanka: A Review of the
Political Economy, at the IPS, in May 2016.
The presentation was based on the ongoing work for an ADB project on Sri Lanka
conducted by the International Centre for
Tax and Development in the UK, where Prof.
Moore is the Chief Executive Officer.

IPS Research Fellow, Dr. Bilesha Weeraratne was a

panelist at a discussion on The Relevance of the
Urban Planning Guidelines in the Context of
Sri Lankas Western Region Megapolis Master Plan
organized by the UN-Habitat, in February 2016.

IPS organized the World Consumer Rights Day

Forum 2016, to mark World Consumer Rights
Day, for the 4th consecutive year. Speaking
at the event held at the IPS Auditorium,
Executive Director, Dr. Saman Kelegama
stressed the importance of consumers and
policy makers getting together to identify
issues that affect the countrys consumers.

Deepening Trade and Investment

Relations between Malaysia and
Sri Lanka

EU - Sri Lanka Trade Seminar

IPS Research Fellow, Dr. Bilesha Weeraratne

participated at the Regional Workshop on
Labour Market Research held in June 2016 in
Colombo, where she made a presentation on
Labour Market Analysis for Labour Migration
Policy Planning Initiatives in Sri Lanka.

Workshop on Food-Based Safety

Nets

Visit of Indian Officer Trainees of

the Indian Foreign Service

IPS together with the Ministry of Primary

Industries (MPI) and the support from
International Food Policy Research Institute
(IFPRI) conducted a National Workshop on
Food Value Chain Development in Sri Lanka,
with the aim of facilitating a dialogue on
value chain developments in agro-food
industries and to develop a Food Value Chain
Development Plan for Primary Industries with
four sub-sectors Development Programme at
the IPS Auditorium in April 2016.

Boosting Trade Competitiveness

around Emerging New Issues in
Multilateral Trade Agreements

A High Level Policymakers Workshop on

Boosting Trade Competitiveness around
Emerging New Issues in Multilateral
Trade Agreements was held in Colombo
during in March, organized by the Trade
Competitiveness Section (TCS), Commonwealth
Secretariat in partnership with Department
of Commerce, Government of Sri Lanka, IPS
and the International Institute of Sustainable
Development (IISD).

Nine Officer Trainees of the 2015 batch of

the Indian Foreign Service visited IPS as part
of a study visit. Deputy Director, Dr. Dushni
Weerakoon together with Janaka Wijayasiri,
Suwendrani Jayaratne and Raveen Ekanayake
spoke of economic and commercial
relationship between India and Sri Lanka and
interacted with the Officer Trainees, who were
accompanied by N S Yeola, Second Secretary
(E&C), High Commission of India, Sri Lanka.

A team headed by the Malaysian Minister of

International Trade and Industries, Dato Mustapa
Mohomed visited the IPS, on 6th May 2016
to discuss bilateral relations between the two
countries. The Minister met the IPS Executive
Director, Dr. Saman Kelegama and discussed ways
and means of deepening trade and investment
relations between Malaysia and Sri Lanka.

South Asian Think Tank and Media

Delegation Exchange Programme

Regional Workshop on ICIMS

Sri Lanka Economic Forum 2016

The Sri Lanka Economic Forum 2016 was

held at the Cinnamon Grand Hotel, in Colombo
during 7-8 January 2016 under the theme
of Steering Sri Lanka towards Sustainable
and Inclusive Development. At the Forum,
Dr. Saman Kelegama, Executive Director
of IPS, made a presentation on Structural
Transformation and Competitiveness in Sri
Lanka, while Dr. Ganga Tilakaratna, Research
Fellow of IPS, made a presentation on Social
Inclusion in Sri Lanka: Poverty and Ageing.

IPS Executive Director, Dr. Saman Kelegama,

provided a policy overview on Sri Lankas
trade with the EU and GSP-Plus at a seminar
organized by the European Chamber of
Commerce of Sri Lanka (ECCSL) together with
the EU Delegation to Sri Lanka & the Maldives
in January 2016.

IPS
NEWS
IPS Research Officer Nipuni Perera,
participated in the South Asian Think Tank
and Media Delegation Exchange Programme
held in China in April 2016.

A Regional Consultation Workshop on Bridging

the Climate Information and Communication Gaps
for Effective Adaptation Decisions: An Integrated
Climate Information Management System was
held on 21st and 22nd June, 2016 at the Galadari
Hotel, Colombo, Sri Lanka.
The Workshop was organized by IPS in partnership
with the Department of Meteorology of Sri Lanka
(DOM), Janathakshan, and South Asian Network
for Development and Environmental Economics
(SANDEE). The Workshop was a part of an
action research programme to identify and pilot
test replicable Integrated Climate Information
Management Systems.

IPS Research Fellow, Ganga Tilakaratna

presented a paper titled Food- Based- Safety
Nets in Sri Lanka: Evolution and Transition to
Cash Transfers at a workshop on FoodBased Safety Nets organized by the World
Bank during 14-16 March at the World Bank
Headquarters in Washington D.C., USA.

Second BIMSTEC Roundtable

Imagining South Asia in 2030:

Emerging Trends, Challenges, and
Alternatives

IPS Executive Director, Dr. Saman Kelegama

addressed the Second BIMSTEC Roundtable
Meeting at the BIMSTEC Secretariat, Dhaka,
Bangladesh in February 2016.

IPS Research Assistant, Kithmina Hewage,

presented a paper at the International Seminar
on Imagining South Asia in 2030: Emerging
Trends, Challenges, and Alternatives held at the
Pondicherry University, India.

49

Authors & TE Team

Wimal Nanayakkara

Athula Senaratne

Wimal is a Senior Visiting Fellow of IPS

with research interests in Poverty and
Development Policy , and is a specialist in
Sampling. He was previously engaged at
the Department of Census and Statistics,
where he functioned as the Director
General for 12 years.

Athula is a Research Fellow and the

Head of Environmental Economic
Policy. He holds a PhD from the Deakin
University, Australia. His Research
Interests include Environmental
Economics, and Agricultural Economics.

Janaka Wijayasiri

Bilesha Weeraratne

Janaka is a Research Fellow and the

Head of International Economic Policy
Research at IPS. He holds a PhD from
the Monash University, Australia. His
Research Interests include International
Economics and Trade, Regional
Integration and WTO Issues. He is also
the Editor of Talking Economics.

Bilesha is a Research Fellow, attached

to the IPS Labour, Employment and
Human Resources Development. She
holds a MPhil and PhD in Economics
from the City University of New York,
USA. Her Research Interests include
Immigration and Migration, Economics
of Education, Urbanization, Labour
Economics, Econometrics and Economic
Modeling.She is also a Member of the
Talking Economics Team.

Kanchana Wickramasinghe

Priyanka Jayawardena

Kanchana is a Research Economist with

research interests in Environmental
Economics, Agricultural Economics, and
Poverty and Development Policy. She
holds a Masters in Economics with a
Distinction Pass from the University of
Colombo.

Priyanka is a Research Economist

with research interests in education
and skills development, labour market
analysis, inequality analysis, health
economics and child nutrition. She holds
a MA in Economics from the University
of Colombo.

Chatura Rodrigo

Sunimalee Madurawala

Chatura was an Economist at IPS with

research interests in Environmental
Economics, Agriculture Economics,
Econometrics and Economic Modeling.

Sunimalee is a Research Officer attached

to Health Economic Policy. Her research
interests include health economics, gender
and population studies. She holds a
Masters in Economics from the University
of Colombo,

Raveen Ekanayake

Suwendrani Jayaratne

Raveen is a Research Officer with

research interests in trade, foreign
direct investment, and private sector
development; and is a member of the
Talking Economics Team. He holds
a Masters degree in Public Policy,
specialising in Economic Policy from the
Australian National University.

Suwendrani is a Research Officer attached

to International Economic Policy. Her
Research Interests include international
economics and trade, trade facilitation,
regional integration and macroeconomic
policy. She holds a MA in International
and Development Economics from the
Australian National University, Australia.

Samanthi Bandara

Nipuni Perera

Samanthi is a Research Officer at IPS

with research interests in Agricultural
Economics, Health Policy Programme,
Econometrics and Economic Modeling,
Environmental Economics, Health
Economics and Policy, and Poverty and
Development Policy. She holds a MSc
in Health Economics from the Centre
for Health Economics, University of
Chulalongkorn, Thailand.

Nipuni is a Reserch Officer with with

research interests in international
economics, trade and industrial policy, and
macroeconomic policy. She holds a BA
(Hons) in Economics from the University of
Colombo.

Kithmina Hewage

Yolanthika Ellepola

Kithmina is a Research Assistant with

research interests in International Political
Economy including WTO issues, Trade and
Development, Export competitiveness,
and Foreign Direct Investment. He holds
an MSc in International Public Policy from
University College London. Kithmina is also
a member of the Talking Economics Team.

Yolanthika is a Research Assistant with

research interest in Health. She obtained
her MSc (Public Management and
Governance) from the London School of
Economics, UK in 2013. She holds a BSc
(Hons) in Applied Economics from the
University of St- Andrews, Scotland- UK in
2012.

Chantal Sirisena

Pamokya Marambe

Chantal is a Research Assistant IPS with

research interests in international trade,
foreign direct investment, migration,
development finance and private sector
development. She graduated with a
First Class Honours in Economics from
University College London.

Pamokya was an Intern at IPS, and hes

currently following an undergraduate
degree in economics and finance.

Dishnika Perera

Charmaine Wijesinghe

Dishnika is Manager Communications

& Strategic Outreach at IPS and is
a member of the Talking Economics
Editorial Team. She holds a BA (Hons)
from Coventry University, UK.

Charmaine is Manager Publications

& Events at IPS and is a member of the
Talking Economics Team

FAST
FACTS
The rupee
fell 9% in 2015.

$ 40 billion mega development plan launched to

develop the capital Colombo and the Western
Province will transform the capital city into one of
the most economically powerful cities in the
world. This is equivalent to the cost of CPEC
(China-Pakistan Economic Corridor).

$ 40 billion

Sri Lankas first quarter tea exports

dropped to $311.8 million in 2016 from
$334.9 million in 2015 due to a
combination of bad weather conditions
and volatile markets.

$334.9 million

40% of Sri Lankas population lives on less

than Rs. 225 a day with growing inequality
and higher numbers
of poor living in
urban areas.

The emergence of global production networks

provides Sri Lanka with an ideal opportunity to
expand its trade and investment portfolio
Page 10

TPP signed in February 2016 is the worlds

first mega trade agreement of its kind and
brings together 12 countries, both developed
and developing nations in the Asia-Pacific region

The Trade Facilitation Agreement is unique

compared to other WTO agreements due to the
flexibility it offers to the developing
nations and LDCs in terms of implementation
Page 16

Chinas One Belt One Road Initiative aims to connect

Asian, European and African continents and strengthen
partnerships towards promoting diversified, independent,
balanced, and sustainable development via policy
coordination, connectivity, unimpeded trade, financial
integration, and people-to-people bonds

According to the National Minimum Wage of

Workers Act, the minimum national wage is
now set at Rs. 10,000.
A study by the US based Business Times
magazine found that every Sri Lankan throws
5.1 kilos of plastic and bottles to the sea on
average and ranked the country among the top
20 contributors of plastic waste into the sea. The
study further found that
the country generates an
average of 5,163,689
kilos of waste per day.

$31 million

Norways Pension Fund, the worlds largest

sovereign wealth fund, invested $31 million in
shares of 12 Sri Lankan listed companies
engaged in industrials, finance,
telecommunications and consumer goods sectors.

Tourist arrivals to Sri Lanka in May grew by

10.1% to 125,044 with the continued expansion
of the Chinese market leading to an overall
growth of 18.4% in total for the first five
months. India continues to be the main source
market with arrivals
growing by 7.9% while
China followed with a
growth of 31.5%.

52

SriLankan Airlines the

national carrier has
accumulated a debt of $3.2 billion.
The airline last made a profit in 2009.

To achieve SDGs by 2030, it is essential to

establish a high powered coordinating body to
direct, coordinate and guide all stakeholders responsible
for planning and implementation of SDG strategies
Page 20

Page 14

Sri Lanka joined 180 other countries

in signing the Paris Agreement a
landmark agreement to tackle the
effects of climate change.

Vehicle registration numbers in January

2016 halved to 31, 854 units from the peak
levels of 61,864 units in November 2015.

In a Nutshell

snippets from the

Talking Economics Digest

Urgent attention of
authorities in creating accessible,
productive and decent employment
opportunities, especially for women in all
regions of the country, is key to reducing
persisting high income inequality and poverty
Page 27

Page 18

IHS Global Insight, a US-based think

tank, listed Sri Lanka as one
of the top 10 foreign FDI
destinations in Asia.

Those exposed to better education, family income,

healthy lifestyles and healthcare schemes supported
by employers demonstrate better awareness about
cancer but the general public at large is misinformed at
every level of the treatment process
Page 34

Alternative definition for urban

areas estimates that 43.8% of
Sri Lankans live in urban areas
Page 30
Presidential Task Force established for
the prevention of CKD confirms approximately
20,000 patients are admitted to government
hospitals with 2,000 deaths annually reported
Page 38

ADB predicted that Sri Lankas economy would

achieve its target of expanding by 5.3% in 2016.
The countrys economic growth however is
predicted to be marginally
slower than projected
regional growth rates of 5.7%.

5.3%

Sri Lankas first quarter tea exports dropped to

$311.8 million in 2016 from $334.9 million in
2015 due to a combination of bad weather
conditions and volatile markets.

$311.8 mill
Insurance claims following floods in parts of the
island are estimated to account for Rs. 16.5
billion, which are more than that disbursed
after the 2004 tsunami.

Rs.50 billion
Japan pledged Rs. 50 billion in financial
support to Sri Lanka in addition to
expressing interest in further enhancing
cooperation in areas of maritime,
reforms, urban development, and
technology.

Manpower workers are discriminated

and they do not receive equal rights,
despite handling similar workloads as their
permanent counterparts

Parents have signaled mixed

opinions towards their support of special
education, while teachers reveal mixed
opinions towards including children with
disabilities in regular classrooms
Page 32

Although globally statistics on the extent

of abuse on elderly population is scant,
population based studies have predicted that
approximately 4% to 6% of elderly people have
experienced a degree of maltreatment at home
Page 46

Page 44

Recent population projections expect Sri

Lankas population to reach 25 million
by 2042 and 25.8 million by 2062,
according to a study by Prof. Indralal de
Silva and Dr. Ranjith de Silva which
incorporated information
revealed through the
Census of Population
and Housing 2012.

53

SUPPORTED BY

A PUBLICATION BY THE INSTITUTE OF POLICY STUDIES OF SRI LANKA