COVID-19 and Poverty
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COVID-19 and Poverty
Despite Sri Lanka's progress in reducing income poverty over the years, COVID-19 has highlighted the existing and worsening inequalities that exist.
This series seeks to understand the facets of poverty and inequality.
Over the years, Sri Lanka has made steady progress in reducing income poverty, with the national poverty headcount index seeing a decline from 22.7% in 2002 to 4.1% in 2016 when it was last computed. Despite this achievement however, Sri Lanka has been no stranger to inequalities and overlapping deprivations that exist in accessing healthcare, education, clean water, sanitation, and nourishment, all of which contribute towards ensuring the overall wellbeing of its citizens.
In addition to the health and safety concerns due to COVID-19, the country also faces fiscal deficits and disasters which have and will likely continue to contribute to a rise in the percentage of those now living below, and just above the poverty line, as well as a rise in inequalities in the years to come. The severity of the impact however, is still largely unknown as the pandemic continues to impact our day-to-day activities.
As we continue to battle COVID-19, nearly two years since it was declared a pandemic, our health, safety, livelihoods, education, democracy have all taken a tumble. It has gravely hit Sri Lanka’s economy due to overall disruption and economic slowdown. In particular, economic activities related to tourism and travel, hotel and hospitality are badly affected. Similarly, the apparel sector, exporters, and construction related activities have also been affected.
The tourism industry which was already suffering from the consequences of the Easter attacks in April 2019 has been the worst hit, affecting a large number of businesses and workers who are engaged with the sector both directly and indirectly.
The SME sector that accounts for 45% of the employment in Sri Lanka, have also faced difficulties with servicing debt, logistical constraints, converting to remote operations, and retaining jobs.
For labour migrants, who used this as way out of poverty, some doors have closed and they have returned home – adding to uncertainty of their future employment choices. Working and schooling - from home, added further burden on women, given their socially ascribed gendered household work and care responsibilities. This compounded their stress and anxiety levels during the pandemic (as can be seen in the findings from the first survey wave conducted).
These are just a few of the narratives that are emerging due to COVID-19 and other challenges that we have explored. While these experiences are not unique to Sri Lanka, this short series of articles availbale below elaborate on various aspects of poverty, vulnerability, and coping strategies that have emerged through CEPA’s work, providing valuable insights into the changes taking place around us as the pandemic rages on.
The pandemic and its resultant shocks and disruptions has acted as a wake-up call for us to do better, to work towards bridging the existing inequalities.
Understanding the facets of poverty and inequality
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The following blogposts provide insights into the impact of COVID-19 on poverty and inequality thus far: