Holidays for me have always been about family and food. A time to relax, catch-up with loved ones and eat good food. When it’s our turn to cook, my husband and I take time to plan the menu. A central part of our meals are vegetables and fresh fruits but we have also learnt over the years that a good meal needs fresh ingredients, all procured as close to the preparation of the meal as possible.
Sri Lanka has not disappointed in its array of fruits and vegetables. I am still discovering the names of many; some of which I will never be able to pronounce for sure. Despite that, I love eating them!
Amongst my favourites are papaya, mangoes and kankun, the last for which I share a passion with my two pet turtles. But getting these vegetables and fruits from the same supplier on a constant basis is a challenge. Even common produce like onions, tomatoes, and cucumbers can be discoloured or squishy – not at all appetizing or conducive for a salad or other such type of fresh dish.
The price, of course, is the same whatever the quality. Fresh produce can be expensive, and regularly buying a variety of fruits and vegetables does strain the budgets of many families in Sri Lanka. Needless to say, this shouldn’t be the case in a country with such rich soils and plentiful sunshine.
The question of access to fresh and healthy food goes beyond our holiday tables. According to the World Health Organisation, 1 in 5 premature deaths in Sri Lanka are due to a non-communicable disease (NCD) such as diabetes, cardiovascular disease or cancer. Tobacco use, unhealthy diets, harmful use of alcohol and physical inactivity have all been identified as risk factors.
The members of the community in the Bulugolla village in Sri Lanka breathed a sigh of relief. It was the month of October and the rice harvest had gone well. The rains had been plentiful and their meddlesome neighbors (seen in picture above) were abiding by their boundaries. This has not always been the case.
As the head of the village explained, “We depend upon a rice harvest to earn our livelihood. While we culturally and traditionally have lived in harmony with elephants, we cannot survive without our paddy farms and so we have to keep the elephants out”.
Human wildlife conflict is currently one of the greatest conservation challenges. As human populations grow, wildlife habitat shrink and humans and wildlife come in contact with each other as they compete for resources. In addition, wildlife such as elephants cannot be limited to the boundaries of protected areas as many protected areas can only support a certain number of elephants. In Sri Lanka, most elephant live outside protected areas amidst paddy fields, community villages, highway railways and other development infrastructure that is intended to support the growing human population. Conflict is inevitable but failure to reduce it will result in extinction of wildlife species.
I heard about some of these challenges. One girl had an ailing mother at home and was responsible for her care; another struggled to study on weekends while working on weekdays, with both activities requiring long commutes. One young lady, T. Priya, who had just graduated from university with a BA, told me she was currently unemployed because she was determined to wait for the right job—which to her, meant joining the public sector. You’d be amazed at how often I have heard this from young Sri Lankans. Unfortunately, as we all know too well, there are only a limited number of these positions available.
This week, the World Bank published Getting to Work: Unlocking Women’s Potential in Sri Lanka’s Labor Force. The report notes that the number of women participating in Sri Lanka’s workforce is low, that women under 30 are facing high rates of unemployment and that wage disparities still exist between the sexes.
Among its findings is that women like Priya, despite having high educational attainments (university level or higher), still queue for a limited number of public sector jobs which raises their rates of unemployment. Government jobs are seen as offering more flexible hours and financial security than private sector jobs.
Another issue is that the burden of household responsibilities and chores fall disproportionately on women. When women got married, it made it harder, not easier, for them to go to work, and this was only exacerbated when women had children.
For men, the situation is somewhat different. As of 2015, marriage lowered the odds of Female Labour Force Participation by 4.4 percentage points, while boosting men’s odds by 11 percentage points.
But I think the roots of this problem go deeper, and start early. Young girls learn that it’s not important to be good at maths or sciences and many more pursue degrees in humanities and the arts, widely considered gender appropriate, rather than in the technical skills that are in demand in the private sector and growing industries.
This is only one way in which we limit our daughters.
I first met Saman in the early 1990s in Delhi. Over the years, our paths diverged. When I re-engaged on South Asia, I ran into Saman again. We re-connected instantly, despite the long intervening period. This was easy to do with Saman—soft-spoken, affable, a gentleman to the core. He bore his considerable knowledge lightly.
Despite his premature passing away in June 2017, he left a rich and varied legacy behind him. I will confine myself to discussing his insights on regional cooperation in South Asia, based on his public writings and my interactions with him.
Saman was a champion of deeper economic linkages within South Asia. He was also pragmatic.
Along with a few other regional champions, Saman, as the head of the Institute of Policy Studies in Colombo, helped to kick-start the “South Asian Economic Summit”, or SAES, in Colombo in 2008, to provide a high-profile forum for dialogue on topical issues, especially South Asian regional integration. It is remarkable that the SAES has endured, without any gap. The fact that the policy and academic fraternity meet with unfailing regularity, despite on-and-off political tensions in the region, is testimony to its value.
Saman repeatedly stressed that Sri Lanka has been able to reap benefits from the India-Sri Lanka FTA (ISFTA), contrary to the general belief. His arguments were powerful: the import-export ratio for Sri Lanka improved from 10.3 in 2000 (the start of the ISFTA) to 6.6 in 2015; about 70 percent of Sri Lanka’s exports to India get duty-free access under the FTA, but less than 10 percent of Sri Lanka’s imports from India come under the FTA (since India provided “special and differential treatment” to Sri Lanka).
When we speak of gender equity in education in developing countries, and particularly in the South Asian context, we immediately think of the disadvantages girls face in access to education. The case in Sri Lanka, however, will make you think twice.
While most of South Asia still faces the gender gap challenge in favor of boys, we think that Sri Lanka’s educational gender gap favors girls. Like their counterparts in most high-income countries, Sri Lankan girls are consistently outpacing boys both in terms of educational access and achievement.
But how confident are we that the available data on economic activity paints an accurate picture of a country’s performance?
Measuring Gross Domestic Product (GDP), the most standard measure of economic activity, is especially challenging in developing countries, where the informal sector is large and institutional constraints can be severe.
In addition, many countries only provide GDP measures annually and at the national level. Not surprisingly, GDP growth estimates are often met with skepticism.
New technologies offer an opportunity to strengthen economic measurement. Evening luminosity observed from satellites has been shown to be a good proxy for economic activity.
As shown in Figure 1, there is a strong correlation between nightlight intensity and GDP levels in South Asia: the higher the nightlight intensity on the horizontal axis, the stronger the economic activity on the vertical axis.
However, measuring nightlight is challenging and comes with a few caveats. Clouds, moonlight, and radiance from the sun can affect measurement accuracy, which then requires filtering and standardizing.
On the other hand, nighlight data has a lot advantages like being available in high-frequency and with a very high spatial resolution. In the latest edition of South Asia Economic Focus, we use variations in nightlight intensity to analyze economic trends and illustrate how this data can help predict GDP over time and across space.
October 17, 2017 – Today marks the 25th anniversary of the United National declaration of the International Day to End Extreme Poverty. Compared to many other countries in the world, Sri Lanka has done well in ending extreme poverty. Between 2002 and 2012, extreme poverty in Sri Lanka decreased from 8.3% to 1.9% while the national poverty level fell from 22% to 6.7% during the same period. Read the latest poverty brief and the two-part series on understanding poverty in Sri Lanka to learn more.
The big picture of poverty in Sri Lanka may be different when we zoom in on individuals and communities. In order to understand individual perspectives and opinions, this year we have opened up an opportunity for Sri Lankans to share their views on Sri Lanka’s Vision to End Poverty. We welcome your views in the form of a short blog post on why you believe #itspossible to end poverty in Sri Lanka. Below are some questions to get you thinking. You need not capture all of them, or be restricted to answering just these questions, but we are interested in hearing from you on these themes.
- Do you feel that you have more opportunities than your parents did at your age? Why or why not?
- How could more openings be created for you and your peers?
- Do you believe that the future will provide more prospects than the present?
- What are you most excited about and most discouraged by in terms of available opportunities in Sri Lanka?
- Do you think it is possible to end poverty in Sri Lanka? As individuals, can we contribute to making this goal a reality?
- How do you think the reforms listed in Vision 2025 can contribute to ending poverty in Sri Lanka?
- All participants must be registered with us through the online form available here. Follow the submission instructions detailed there.
- You will be requested to provide a short biography and profile picture which will become your profile, and accessible from the article(s) you write if selected by the panel of editors.
Two years ago, we started counting how many Sri Lankan agencies were involved in trade facilitation processes such as issuing permits and managing the movement of goods in and out of the country. We counted at least 22 agencies in this assessment, and today, the Department of Commerce estimates that number at least 34 agencies are involved in issuing permits or publishing regulations that affect trade.
We know trade is critical to Sri Lanka’s future and that there are strong links between trade, economic growth and poverty reduction.
However, the trading community reports a lack of transparency, confusion around rules and regulations, poor coordination between various ministries and a dearth of critical infrastructure—you can see why trade has suffered in Sri Lanka.
When the World Bank evaluates a country’s performance in critical rankings like Doing Business, the ease of trading across borders is one of the benchmarks we consider. In this, and in other lists like the Logistics Performance Index, Sri Lanka is underperforming compared with its potential. Here, the average trade transaction involves over 30 different parties with different objectives, incentives, competence and constituencies they answer to, and up to 200 data elements, many of which are repeated multiple times. This environment constrains the growth of Sri Lanka’s private sector, especially SMEs.
But now for the good news. By ratifying the World Trade Organisation Trade Facilitation Agreement, Sri Lanka has signalled its determination to intensify reform efforts.
Sri Lanka experienced strong growth at the end of its 26-year conflict. This was to be expected as post-war reconstruction tends to bring new hope and energy to a country.
And Sri Lanka has done well—5 percent growth is nothing to scoff at.
However, Sri Lanka needs to create an environment that fosters private-sector growth and creates more and better jobs. To that end, the country should address these 6 pressing challenges:
1. The easy economic wins are almost exhausted
For a long time, the public-sector has been pouring funds into everything from infrastructure to healthcare. Unfortunately, Sri Lanka’s public sector is facing serious budget constraints. The island’s tax to growth domestic product (GDP) ratio is one of the lowest in the world, falling from 24.2% in 1978 to 10.1% in 2014. Sri Lanka should look for more sustainable sources of growth. As in many other countries, the answer lies with the private sector.
2. Sri Lanka has isolated itself from global and regional value chains
Over the past decades, Sri Lanka has lost its trade competitiveness. As illustrated in the graph below, Sri Lanka outperformed Vietnam in the early 1990s on how much of its trade contributed to its growth domestic product. Vietnam has now overtaken Sri Lanka where trade has been harmed by high tariffs and para-tariffs and trade interventions on agriculture.
Sri Lanka dropped down by 14 notches to the 85th position out of 137 in the recent Global Competitiveness Index.
3. The system inhibits private sector growth
Sri Lanka’s private sector is ailing. Sri Lankan companies are entrepreneurial and the country’s young people are smart, inquisitive, and dynamic. Yet, this does not translate into a vibrant private sector. Instead, public enterprises are the ones carrying the whole weight of development in this country.
The question is, why is the private sector not shouldering its burden of growth?
From the chart above, you can see how difficult it is to set up and operate a business in Sri Lanka. From paying taxes to enforcing contracts to registering property, entrepreneurs have the deck stacked against them.
Trading across borders is particularly challenging for Sri Lankan businesses. Trade facilitation is inadequate to the point of stunting growth and linkages to regional value chains. The chart explains just why Sri Lanka is considered one of the hardest countries in the world to run a trading business. Compare it to Singapore–you could even import a live tiger there without a problem.
India’s state of Chhattisgarh faced a daunting challenge in the mid-2000s. About half of its public food distribution was leaked, meaning that it never reached the intended beneficiaries. By 2012, however, Chhattisgarh had nearly eliminated leakages, doubled the coverage of the scheme, and reduced exclusion errors to low single digits.
How did they do it?