Sri Lanka is well poised to meet the Millennium Development Goal of halving the incidence of Income Poverty before the target year of 2015, from the 2005 level. The number of poor living below the poverty line has reduced from 15.2 percent in 2006/07 to 8.9 percent in 2009/10 and has further declined to 6.5 percent in 2012, stated the Ministry of Finance and Planning in its Annual Report 2012 on current economic trends in Sri Lanka.
During the same period, inequality has also reduced from 0.4 to 0.36 as reflected in the Gini Coefficient as per the said Household and Income Expenditure Survey (HIES) 2012/2013), the report said.
The Central focus of the Government’s overall development strategy is to reduce poverty beyond the targets set in the Millennium Development Goals (MDGs) by 2015. Reflecting this priority to promote rural development with an inclusive growth, a well – integrated rural livelihood development strategy that embraces households (Divi Neguma/ Samurdhi), and provides welfare benefits and promotes community empowerment (Gama Neguma) through the development of required infrastructure such as access roads, rural electricity, community water and sanitation, minor irrigation systems , market centers have been implemented by the Government, the report further added.
The overall development and poverty reduction initiatives that have been implemented has helped the country to perform equally well with regard to the Multi-dimensionally poor in Sri Lanka is 1.9 percent (preliminary results of Household and Income Expenditure Survey (HIES) 2012/2013), since Sri Lanka has performed better compared to many other countries in relation to child mprtality, nutrition, schooling , access to safe drinking water, sanitation , cooking fuel, and housing assets, indicating the effectiveness of the Government poverty reduction strategy by effectively reaching targeted poverty segments in the society.
Consolidating these gains, the President Mahinda Rajapaksa declared in the Budget 2013, the goal to create a poverty reduction efforts based on evidence reflected in the HIES of 2012/13, having addressed the remaining facets of poverty connected with malnutrition, disabilities, housing and sanitation conditions, school-dropouts, non-communicable diseases and natural disasters.
For full report please visit:
http://www.treasury.gov.lk/reports/annualreport/2012/1-EconomicPerspectives-Sri Lanka .pdf