Poverty and Malnutrition in Sri Lanka: An Overview

Today is International Day for the Eradication of Poverty

Poverty and malnutrition are interconnected issues that continue to affect millions worldwide and Sri Lanka is no exception. In recent years, global poverty levels have faced setbacks after decades of progress. The World Bank updated the global extreme poverty line to $2.15 per person per day in September 2022, up from the previous $1.90. This change revealed that more than 700 million people currently live in extreme poverty. The period from 2020 to 2023 saw significant disruptions due to crises such as the COVID-19 pandemic, which reversed gains made in poverty reduction, leading to four years of lost progress. By 2022, 712 million people lived in extreme poverty, an increase of 23 million since 2019, with low income countries particularly affected. Many low income countries, which saw an increase in poverty levels over recent years, are still struggling to recover.

Malnutrition remains a widespread issue and takes many forms including undernutrition (such as wasting, stunting and being underweight) as well as deficiencies in vitamins or minerals and issues related to overweight and obesity, which often lead to diet-related noncommunicable diseases. In 2022, the global challenge of malnutrition became more evident. Approximately 2.5 billion adults were classified as overweight with 890 million of them living with obesity while 390 million were underweight, highlighting the dual burden of malnutrition. Among children under five years old, 149 million were stunted (too short for their age), 45 million were wasted (too thin for their height) and 37 million were overweight or living with obesity. For adults aged 18 and older, about 390 million were underweight while an additional 2.5 billion faced issues with being overweight or obese. Among children and adolescents aged 5-19 years, 390 million were overweight including 160 million who were obese. Meanwhile, 190 million were considered to have thinness, meaning their Body Mass Index (BMI) for age was significantly below the reference median. Stunting remains a critical issue among young children with 149 million under the age of five affected by 2022 while 37 million faced challenges with being overweight or obese. Undernutrition contributes to nearly half of all deaths among children under five, particularly in low and middle income countries, underscoring the urgent need for targeted nutrition interventions.

Poverty and malnutrition in South Asia have significantly worsened since 2020 due to the impact of the COVID-19 pandemic and deteriorating global economic conditions. Before 2020, South Asia had made notable strides in poverty reduction with countries like India, Bangladesh and Sri Lanka experiencing consistent economic growth. However, the pandemic caused widespread economic disruption leading to job losses, reduced incomes and increased vulnerability across the region. The pandemic hit informal and low income workers the hardest, particularly in sectors such as agriculture, construction and small scale manufacturing, which employ a large portion of South Asia’s population. The resultant loss of income pushed millions of families below the poverty line, undoing years of progress in poverty alleviation. India, Sri Lanka and Pakistan, for instance, saw poverty rates surge with rising unemployment and inflation further worsening the situation. Afghanistan, already struggling with conflict, witnessed a catastrophic rise in poverty due to the combination of political instability and the pandemic.

Malnutrition, particularly among children, also worsened as the economic downturn led to food insecurity. Supply chain disruptions and rising food prices made it difficult for poor families to access nutritious food. The World Food Programme and UNICEF reported that millions of children in South Asia faced heightened risks of malnutrition during this period. Countries such as Bangladesh, Nepal and Afghanistan, where food systems were already fragile, saw particularly sharp increases in child malnutrition rates. The global economic downturn, driven by the COVID-19 pandemic and escalating conflicts, has worsened these challenges. High inflation, rising commodity prices and supply chain disruptions have severely impacted food availability and affordability across South Asia. As a result, poverty and malnutrition have deepened further in the region, with many struggling to meet basic needs.

The Department of Census and Statistics (DCS) publishes official poverty statistics based on the Official Poverty Line (OPL) in Sri Lanka. These statistics include the number of people living in poverty, the poverty rate (or Poverty Headcount Index), the depth and severity of poverty, the poverty shortfall and the distribution of poverty across sectors, provinces and districts. The OPL, initially established in 2002, was revised by the DCS in 2016 using the 2012/13 Household Income and Expenditure Survey (HIES) data to align with international best practices. The most recent survey was conducted in 2019 and data from this survey is still used to assess poverty despite significant changes in the country’s economic conditions due to COVID-19 and a subsequent economic crisis. Notably, the DCS did not conduct an HIES survey in 2022, leaving a gap in updated data.

In 2022, Sri Lanka faced an economic crisis of unprecedented scale since its independence from Britain in 1948. A key factor behind this turmoil was a shortage of foreign currency, which hindered the country’s ability to pay for essential imports like staple foods and fuel. This led to severe shortages and skyrocketing prices. The World Bank observed that Sri Lanka’s economic recovery in 2021 was insufficient to bring poverty back to pre-crisis levels. Simulations suggested that the ongoing financial crisis could push the poverty rate up to 25.6 percent in 2022, which would mean more than 2.5 million additional people falling into poverty compared to 2021, bringing poverty levels back to those seen in 2009.

Sri Lanka’s economic crisis has been attributed largely to poor policy decisions made by successive governments. The country’s economic growth in recent years has been weaker than expected, while deficits in the balance of payments, the government budget, and the gap between investment and savings widened. Sri Lanka’s real GDP experienced significant fluctuations: -4.6 percent in 2020, a brief recovery to 4.2 percent in 2021, a sharp decline to -7.2 percent in 2022, and -2.3 percent in 2023. However, the first two quarters of 2024 showed positive growth, with rates of 5.3 percent and 4.7 percent, leading the World Bank to project a higher overall growth rate of 4.4 percent for 2024. This improved short term outlook is attributed to faster than expected macroeconomic stabilisation. Nevertheless, to sustain and enhance long term growth, the continued implementation of structural reforms remains crucial.

Despite these improvements, poverty remains a persistent challenge. The poverty rate, measured at $3.65 per person per day, is expected to decline gradually but remain above 20 percent until 2026. According to the World Bank, food insecurity is still high with poverty rates nearly doubling to 23.4 percent in 2024. The success of structural reforms in areas such as fiscal management, debt management, the financial sector, social assistance, state-owned enterprises and trade and investment will be key in determining Sri Lanka’s medium term growth and poverty reduction.

The national average of the district level OPL was Rs.6,966 in 2019, meaning that a family of four required at least Rs.27,864 per month to meet basic needs. By the end of 2022, this line had risen to Rs.13,777, reflecting increased costs of living. By January 2024, it further increased to Rs.17,014, indicating that a family of four needed Rs.68,056 per month. However, the OPL saw a decrease to Rs.16,152 by August 2024. The OPL represents an absolute threshold, designed to ensure a person can meet a minimum nutritional intake of 2,030 kcal per day, serving as a benchmark for comparing household consumption and expenditure over time.

Recent research indicates a significant rise in malnutrition across Sri Lanka. According to the 2024 Global Hunger Index (GHI), the country ranks 56th out of 127 countries with a score of 11.3, reflecting a moderate level of hunger. A survey conducted by the Family Health Bureau in October 2022 highlighted a concerning increase in malnutrition, covering 1,363,747 out of 1,433,676 registered children under five  years old. The findings revealed that 43.4 percent of these children face some form of nutritional issue including growth faltering, underweight, wasting, stunting, overweight and obesity. Among the health districts, Ampara reported the highest percentage of children under five with growth issues while Kilinochchi had the lowest rate. Additionally, 42.9 percent of children in this age group were identified as experiencing undernutrition with Ampara leading at 59.4 percent followed by Anuradhapura and Matara. Kurunegala district recorded the highest absolute number of children suffering from undernutrition with 47,982 cases. The survey also found that 15.3 percent of children under five were underweight, with Nuwara Eliya reporting the highest rate at 23.9 percent. Compared to 2021, underweight prevalence increased across all sectors: the urban sector saw the largest increase (26.4 percent) followed closely by the rural sector (26.2 percent) while the estate sector experienced a 14.3 percent rise. These figures underscore the growing challenge of addressing child malnutrition. Similar to poverty, malnutrition is unevenly distributed across the country. The Northern and Eastern Provinces, Uva and the estate sector experience significantly higher rates of malnutrition compared to the Western Province.

Poverty and malnutrition are persistent challenges, influenced by multiple factors. Economic inequality is a major contributor with wealth disparities between urban and rural populations limiting access to resources and opportunities, especially in regions such as the North, East and Uva. Rural dependence on agriculture, compounded by poor yields, climate-related disasters and outdated farming methods, further deepens poverty and food insecurity. Social safety nets, such as the Samurdhi program, struggle with coverage issues, corruption and insufficient funding, leaving many vulnerable populations inadequately supported. Additionally, access to healthcare is uneven with rural areas facing significant shortages in medical services, impacting maternal and child health, and contributing to high malnutrition rates.

The aftermath of the civil war, which ended in 2009, has left the Northern and Eastern regions struggling to rebuild with lingering poverty and food insecurity. Efforts to address these issues have included government programmes such as Samurdhi, Aswasuma and Poshana Malla and international support through initiatives such as the World Food Programme and the Scaling Up Nutrition (SUN) movement. While these programmes have made some progress, poverty remains concentrated in rural and conflict-affected areas with urban centres like Colombo experiencing better economic outcomes.

To effectively address poverty and malnutrition, Sri Lanka requires a comprehensive approach. Strengthening welfare programmes, modernising agriculture, improving healthcare access and fostering political stability are essential. Targeted efforts to improve maternal and child nutrition, along with investments in education, can help reduce malnutrition rates. A collaborative effort involving the government, civil society and international partners is crucial to create a more equitable and healthier future for all Sri Lankans.