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Rural poverty in Sri Lanka Before the tsunami hit Sri Lanka’s coasts in December 2004, about 5 million people or 25 per cent of the population, were living below the poverty line of US$12 per person monthly. Another 3 million people eked out a living on the equivalent of US$15 per person monthly. The estimated number of poor people living in the country’s rural areas was 4 million (World Bank) — representing almost one third of the total rural population. In a few terrifying minutes, the tsunami took its toll, killing more than 38,000 people and changing the lives of many more by wiping out their livelihoods. Hundreds of thousands of people were at risk of plunging into poverty. In its wake, the tsunami left desolate evidence of how vulnerable rural poor people are in the face of shocks and natural disasters. Nine out of ten poor people in Sri Lanka live in rural areas. The 20-year civil conflict in the north and east of the country had a major impact on poverty, leading to the displacement of about 800,000 people from their homes and sources of livelihood. Thousands of children lost one or both parents, and there was an increase in the number of households headed by women, which are more likely to be exposed to economic hardship. More than 40 per cent of rural poor people are small farmers. Apart from poor people in areas affected by conflict, most of the rural poor are concentrated in the Central, Uva, Sabaragamuwa and Southern provinces. Agricultural growth in those provinces has been sluggish. A significant lack of infrastructure such as roads, electricity, and irrigation and communication facilities limits people’s opportunities to earn income through off-farm activities. Malnutrition among children is common. In some areas in six of the seven provinces, seven out of ten people have no access to electricity, and almost half of the population does not have access to safe drinking water. Agriculture is the major employer in rural areas and an important stimulus for other sectors of the economy. Small-scale farmers produce most of the agricultural output, but their production systems are hampered by neglect, poor economies of scale, low investment levels resulting from poor financial services, and inappropriate or limited technology. Other factors that affect poor farmers'livelihoods include fragmented landholding, post-harvest losses as high as 40 per cent, inconsistent produce pricing and trade policies, and market constraints. |
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