As Christmas dawns and the festive cheer resonates in the homes of some Sri Lankans, let us not forget the many who will spend today in strife. Today, many Sri Lankan families are below the poverty line. And around the world, conflict, economic crisis, environmental change and poor governance have all contributed to an increase in poverty and malnutrition. Both are interconnected issues that continue to affect millions worldwide. As we count down the days to a new calendar year, and make preparations for a future, spare a thought for those less fortunate than us, and give when and where possible.
In 2022, our island nation faced an economic crisis of unprecedented scale since its Independence, leading to severe shortages of essentials and sky-rocketing prices. Earlier this year, the World Bank observed that Sri Lanka’s poverty rates continued to rise for the fourth year in a row, with an estimated 25.9% of Sri Lankans living below the poverty line in 2023.
“Households are grappling with multiple pressures from high prices, income losses, and under employment. This has led to households taking on debt to meet food requirements and maintain spending on health and education,” the World Bank observed. While Sri Lanka has made some progress in terms of debt restructuring, and seems to be on a trajectory which will likely lead to better times next year, the reality will be that such changes will take a long time for its impact to trickle down to the poor and needy. It is likely that the socio-economic standing of nearly a quarter of our population, estimated to be below the poverty line, will not change in a tangible manner, in the first and second quarters of 2025.
“To alleviate as much out of poverty as possible, will involve a two-pronged strategy: first, to maintain reforms that contribute to macroeconomic stability and second, to accelerate reforms to stimulate private investment and capital inflows, which are crucial for economic growth and poverty reduction.”
“Looking forward, the report projects a modest pickup in growth of 2.5% in 2025, with a gradual increase in inflation and a small current account surplus. However, high debt service obligations are expected to exert pressure on fiscal balances. Poverty rates are anticipated to remain above 22% until 2026. Risks to the outlook remain, particularly related to inadequate debt restructuring, reversal of reforms, financial sector vulnerabilities, and the enduring impact of the crisis. The report emphasises that strong reform implementation will be fundamental to fostering a resilient economy through continued macro-fiscal-financial stability, greater private sector investment, and addressing risks associated with State-owned enterprises,” a World Bank report published in May said. The recent ‘upgrading’ of Sri Lanka’s situation, from international rating agencies, while commendable and an important milestone on the path to recovery, will not make significant changes which can be felt by those in poverty – in the near term. Opposition MP Dr. Harsha de Silva yesterday opined that while the ratings upgrade is important, more needs to be done to enable Sri Lanka to regain capacity to ‘borrow’ from international markets. As such, We, will need to stick to our plan, and work on localised solutions and streamlining to improve the overall situation of all Sri Lankans a little longer.
As such, in the season of giving, please do think more of our disadvantaged countrymen and women. Communities thrive when their members are committed to helping one another. When you give during the holiday season, you're not only helping individuals – you're strengthening the fabric of your community. Acts of generosity inspire others to join in, creating a ripple effect that benefits everyone. Giving to those who need it the most is important, but what do you do if you don’t have much to give? You can always share what you have with others. And, importantly it is not all about gifts, money, food and clothing, sometimes compassion and comradery goes a long way as well. Learn to spot those who are feeling loneliness and reach out, perhaps a simple conversation will light up their day. Being aware and mindful of others in grief, or those who are grieving, sometimes following their lead and being there to support them is what’s important and what you should do.
We wish our readers a blessed Christmas, may you all be well and joyful. Help each other in this journey of life.