The COVID-19 Impact on Livelihoods and Poverty in Sri Lanka : Background Note to Sri Lanka Poverty Assessment
The Coronavirus (COVID-19) crisis has dealt a significant shock to Sri Lanka’s economy and people. This note examines the expected impact on poverty and inequality amid widespread job and earnings losses. While poverty was relatively low in Sri Lan...
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| Format: | Report |
| Language: | English |
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World Bank, Washington, DC
2021
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| Online Access: | http://documents.worldbank.org/curated/en/724391618996958268/Background-Note-to-Sri-Lanka http://hdl.handle.net/10986/35496 |
| Summary: | The Coronavirus (COVID-19) crisis has
dealt a significant shock to Sri Lanka’s economy and people.
This note examines the expected impact on poverty and
inequality amid widespread job and earnings losses. While
poverty was relatively low in Sri Lanka prior to the
pandemic, pre-existing vulnerabilities were high, partly
owing to high levels of informality. Many workers do not
have access to employment protection or other job-related
social protection benefits, making them vulnerable during
times of economic crisis. Livelihoods support programs and
various relief measures implemented by the government over
the course of the pandemic are expected to have mitigated
the labor market shock. Inequality is expected to increase
in the short run because of the unequal distribution of the
shock. Moreover, reduced social mobility as a consequence of
widening disparities in access to education for example
could increase inequality in the long term. Policy measures
could aim to strike a balance between those that support a
resilient recovery and those that aim to include the most
vulnerable in the recovery process. Achieving this balance
will help reverse the impact of the pandemic and mitigate
its consequences for inequality. Shifting toward a more
adaptive social protection system would allow much needed
support to be scaled up quickly and effectively in times of crisis. |
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