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Country analysis

Sri Lanka

Sri Lanka is currently experiencing an economic crisis and increased levels of poverty as a result of persistent fiscal and current account deficits, mounting debt, and poor governance. The secondary effects of both the COVID-19 pandemic and the Russia-Ukraine conflict on the country’s economy and people’s livelihoods aggravate the situation.

The estimated number of people living in poverty in 2022 was around 5.7 million (around 26% of the total population), based on the lower-middle-income poverty line of USD 3.65 a day (in 2017 purchasing power parity terms). This figure is 2.8 million people more than in 2021.

The severe scarcity of foreign currency makes it difficult for the country to import essential goods. This results in shortages of food, fuel, fertiliser, medicine, and health items. The population across the country is suffering from long power cuts as a result of the fuel shortages, which by extension is leading to disruptions in public services.

An estimated seven million people are in urgent need of assistance; 3.4 million of this number are highly vulnerable (including children, people with disabilities, women-headed households, and combinations of such groups).

(BBC 14/07/2022, WB 06/10/2022, HT 18/06/2022, OCHA 20/12/2022, OCHA 09/06/2022)

Sri Lanka is currently experiencing an economic crisis and increased levels of poverty as a result of persistent fiscal and current account deficits, mounting debt, and poor governance. The secondary effects of both the COVID-19 pandemic and the Russia-Ukraine conflict on the country’s economy and people’s livelihoods aggravate the situation.

The estimated number of people living in poverty in 2022 was around 5.7 million (around 26% of the total population), based on the lower-middle-income poverty line of USD 3.65 a day (in 2017 purchasing power parity terms). This figure is 2.8 million people more than in 2021.

The severe scarcity of foreign currency makes it difficult for the country to import essential goods. This results in shortages of food, fuel, fertiliser, medicine, and health items. The population across the country is suffering from long power cuts as a result of the fuel shortages, which by extension is leading to disruptions in public services.

An estimated seven million people are in urgent need of assistance; 3.4 million of this number are highly vulnerable (including children, people with disabilities, women-headed households, and combinations of such groups).

(BBC 14/07/2022, WB 06/10/2022, HT 18/06/2022, OCHA 20/12/2022, OCHA 09/06/2022)

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Latest updates on country situation

15 August 2023

A dry weather spell in Sri Lanka resulting from below-average rainfall in the first half of 2023 and water shortages in reservoirs have resulted in a drinking water shortage in 15 districts, affecting around 183,000 people. Local authorities have distributed drinking water to around 154,000 affected people. (ECHO 09/08/2023, NDRSC 15/08/2023)

current crises
in Sri Lanka

These crises have been identified through the INFORM Severity Index, a tool for measuring and comparing the severity of humanitarian crises globally.

Read more about the Index

LKA002 - Socio-economic crisis

Last updated 28/08/2023

Drivers

Socio-political
Food Security

Crisis level

Country

Severity level

3.4 High

Access constraints

1.0

Analysis products
on Sri Lanka

Sri Lanka: Update on the socioeconomic crisis

18 July 2022

Sri Lanka: Update on the socioeconomic crisis

DOCUMENT / PDF / 172 KB

On 10 June 2022, ACAPS published an anticipatory analysis of the prospects for the deterioration of the humanitarian situation in Sri Lanka. This report provides an update of the previous analysis with information available from 10 June to 17 July.

Economy
Sri Lanka: Socioeconomic crisis

10 June 2022

Sri Lanka: Socioeconomic crisis

DOCUMENT / PDF / 266 KB

Sri Lanka faces an economic crisis partly resulting from its twin deficit economy. The economic crisis is affecting the daily life of the population. Hospitals have reported shortages of medicines, price increases have made food unaffordable for part of the population, and some people have already started to migrate to India to escape the effects of the crisis. 

Economy
Sri Lanka: Floods from Southwest Monsoon

07 May 2020

Sri Lanka: Floods from Southwest Monsoon

DOCUMENT / PDF / 224 KB

The Southwest Monsoon is expected to arrive over Sri Lanka in mid to late May 2020. According to the National Department of Meteorology, an estimated 35,000 to 50,000 families may be displaced, based on analysis of previous floods and landslides. 

Natural hazards
Sri Lanka: Drought

16 August 2019

Sri Lanka: Drought

DOCUMENT / PDF / 637 KB

A rainfall deficit in the first half of the year has resulted in drought in most parts of Sri Lanka. As of 12 August, around 660,000 people have been affected across 18 districts. The worst affected districts are Batticaloa, Jaffna, Ampara, Mannar, Mullaitivu and Moneragala, with Mannar and Mullaitivu, both in Northern province, registering the highest percentages of affected people in their respective districts. Food and livelihood needs as well as WASH needs are reported. Farmer families in Northern province are particularly vulnerable.

Natural hazards
Sri Lanka: Floods

31 May 2017

Sri Lanka: Floods

DOCUMENT / PDF / 281 KB

Heavy rains in southwestern Sri Lanka from 25 May triggered flooding that affected 15 districts, of which Galle, Kalutara, Matara, and Ratnapura were the most severely affected. Over 588,000 people have been affected, 180 killed, and 110 are missing. Landslides and flooding have constrained access to heavily affected areas. 

Natural hazards
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