Accelerating Sri Lanka's economic transformation and poverty alleviation are four priorities

Sri Lanka made great progress in improving livelihoods and welfare “The key factor behind sustained poverty reduction was labor-income growth, particularly in nonfarm sectors.

 

Infrastructure investments improved access to markets and services; opportunities in nonfarm sectors expanded, in particular, tourism boomed with visitors quadrupling in less than 10 years, which culminated in the designation of Sri Lanka as a top travel destination; and the “sharing economy” was introduced and services such as Uber, PickMe and Airbnb became popular urban areas. A new World Bank report, Sri Lanka Poverty Assessment: Accelerating Economic Transformation, unpacks the drivers of the success behind Sri Lanka’s recent efforts to improve the livelihoods of its people.

 

The report highlights four priorities for Sri Lanka to further transform its economy, create more jobs and achieve a sustainable trajectory toward poverty reduction and shared prosperity.

 

While the nonfarm sector is diverse, strategic investments in tourism could support rural income growth, given its job creation potential for low-skilled and vulnerable groups.