Sri Lanka's poverty rate has doubled - World Bank

COLOMBO (News 1st) - Sri Lanka's poverty rate continued to increase in 2021, and it then doubled between 2021 and 2022, from 13.1 to 25 percent, the World Bank, in its bi-annual report said.

"This increase has added an additional 2.5 million people into poverty in 2022," the report highlighted.

Households experiencing food insecurity are reducing their spending on health and education. Rising food insecurity has also led to increases in malnutrition and stunting - up from 7.4 percent in 2021 to 9.4 percent in 2022.

Poverty is projected to remain above 25 percent in the next few years due to the multiple risks to households' livelihoods, the World Bank said.

The negative economic outlook for 2023 and 2024 and adverse effects of revenue-mobilizing reforms could worsen poverty projections, according to the World Bank.