World Bank2013-08-272013-08-272002-06-26https://hdl.handle.net/10986/15387This Poverty Assessment report reviews the evolution, and nature of poverty in Sri Lanka, by examining why its significant, recent economic downturn contrasts sharply with its considerable, economic advances during the 1960s; why poverty fell rapidly, and to a relatively, low level in some areas, though it remained high in other parts of the country; and, whether the large resources given to re-distributive programs, really helped reduce poverty. In response, Sri Lanka's hesitant attitude towards progressive economic, and social policies is seemingly the answer, for these policies would have removed the regulations that hinder effective markets, and the private sector, and, would have provided needed infrastructure, and social services, accommodating diversity within its social policies, through resources, and opportunities for the poorest. Notwithstanding gradual, economic liberalization, the economy is still more protected than in countries which started liberalization much later. The regulatory environment - particularly restrictions on labor, and land markets - and weak competitive financial markets, make the investment climate less friendly than that of competitors in the East. Regarding the role of the state in the economy, still large shares in the banking system, insurance industry, power, and water utilities, among others, are government owned. In terms of social policies, the country has a long tradition of protecting acquired rights, and encouraging patronage, rather than stimulating market-based creation of opportunities. The report stipulates the need for creating a policy environment that facilitates poverty reduction, through a strong fiscal policy, deregulation and privatization, agricultural growth policies, and labor market flexibility, based on public services that reach the poor, i.e., improved quality of education, effective social safety nets, and transparent public administration.en-USCC BY 3.0 IGOPOVERTY MITIGATIONPOVERTY ASSESSMENTSECONOMIC CONSTRAINTSPOVERTY INCIDENCESOCIAL PROGRAMSECONOMIC POLICY & PLANNINGSOCIAL POLICYREGULATORY FRAMEWORKMARKET FORCESECONOMIC LIBERALIZATIONSTATE-OWNED BANKSSTATE-OWNED ENTERPRISESMARKET ECONOMYPOVERTY REDUCTION STRATEGIESFISCAL POLICYDEREGULATIONPRIVATIZATIONAGRICULTURAL POLICIESLABOR MARKET NEXUSPUBLIC SERVICESTARGETED ASSISTANCEQUALITY OF EDUCATIONSOCIAL SAFETY NETSPUBLIC ADMINISTRATION ABSOLUTE POVERTYANALYTICAL WORKANNUAL REPORTAVERAGE CONSUMPTIONBUDGET PROCESSBUSINESS ENVIRONMENTCHILD LABORCHRONICALLY POORCIVIL CONFLICTCIVIL SOCIETYCLIMATECOMMODITIESCONSULTATION PROCESSCONSUMPTION INEQUALITYCREDIT SCHEMECROWDINGCROWDING OUTDATA SOURCESDEREGULATIONDEVELOPING COUNTRIESDEVELOPMENT GOALSDEVELOPMENT PARTNERSDISCRIMINATIONDONOR COMMUNITYDRINKING WATERECONOMIC GROWTHECONOMIC INCENTIVESECONOMIC MANAGEMENTECONOMISTSENERGY CONSUMPTIONESCAPE POVERTYETHNIC DIVERSITYETHNIC GROUPSETHNIC MINORITIESEXPENDITURE SURVEYFAMILIESFARMSFINANCIAL MARKETSFINANCIAL SECTORFOOD STAMPSFOOD SUBSIDIESGNPGROSS NATIONAL PRODUCTHEALTH CAREHEALTH INDICATORSHEALTH OUTCOMESHEALTH SERVICESHEALTH SURVEYHOUSEHOLD HEADHOUSEHOLD INCOMEHUMAN CAPITALIMPORTSINCOME LEVELSINCOME SUPPORTINFLATIONINFORMAL SAFETYINFORMAL SAFETY NETSINSURANCEINSURANCE COMPANIESINTEREST RATESINTERNATIONAL ORGANIZATIONSISOLATIONLABOR FORCELABOR MARKETLAWSLIVING STANDARDSLONG- TERM DEVELOPMENTMARKET ECONOMYMARKETINGMEANS TESTINGMEASURING INCOMENATIONAL POVERTYNATIONAL POVERTY LINENATIONAL POVERTY LINESNATURAL RESOURCESNONGOVERNMENTAL ORGANIZATIONSNUTRITIONNUTRITIONAL STATUSPARENTSPER CAPITA CONSUMPTIONPOLICY ENVIRONMENTPOLICY FRAMEWORKPOLICY STATEMENTPOOR COMMUNITIESPOOR HOUSEHOLDSPOVERTY ASSESSMENTPOVERTY LINESPOVERTY PROGRAMSPOVERTY REDUCTIONPOVERTY REDUCTION STRATEGYPOVERTY STRATEGYPOVERTY TRENDSPRESENT VALUEPRIMARY EDUCATIONPRIVATE SECTORPRIVATE TRANSFERSPRODUCTIVE ASSETSPRODUCTIVITYPROPERTY RIGHTSPUBLIC BUDGETPUBLIC EXPENDITURESPUBLIC INSTITUTIONSPUBLIC POLICIESPUBLIC POLICYPUBLIC RESOURCESPUBLIC SECTORPUBLIC SERVICESPUBLIC TRANSFERSPURCHASING POWERPURCHASING POWER PARITYQUALITY OF LIFEREAL WAGESREDUCING POVERTYREFUGEESREGIONAL DISPARITIESREGULATORY FRAMEWORKRESEARCH COMMUNITYRURAL AREASRURAL ECONOMYRURAL POORSAFETY NETSAFETY NET PROGRAMSSAFETY NETSSCHOOLSSECTOR EMPLOYMENTSERVICE DELIVERYSOCIAL EXPENDITURESSOCIAL INDICATORSSOCIAL INFRASTRUCTURESOCIAL POLICIESSOCIAL PROTECTIONSOCIAL SERVICESSTATE-OWNED ENTERPRISESSTRUCTURAL REFORMTACKLING POVERTYTARGETINGTRANSFER PROGRAMSUNEMPLOYMENTURBAN AREASURBAN POPULATIONVIOLENCEVULNERABLE PEOPLEWAGE DIFFERENTIALSWARWELFARE INDICATORSWIDOWSWORKERSWorld Bank10.1596/15387