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Sri Lanka - Ending poverty and promoting shared prosperity : a systematic country diagnostic (English)

Sri Lanka is in many respects a development success story. With economic growth averaging more than 7 percent a year over the past five years on top of an average growth of 6 percent the preceding five years, Sri Lanka has made notable strides towards the goals of ending extreme poverty and promoting shared prosperity (the ‘twin goals’). The national poverty headcount rate declined from 22.7 to 6.7 percent between 2002 and 2012/13, while consumption per capita of the bottom 40 percent grew at 3.3 percent a year, compared to 2.8 percent for the total population. Other human development indicators are also impressive by regional and lower middle-income country standards. Sri Lanka has also succeeded in ending decades of internal conflict in 2009 and steps have been taken towards reconciliation. Sri Lanka’s has had impressive development gains but there are strong indications that drivers of past progress are not sustainable. Solid economic growth, strong poverty reduction, overcoming internal conflict, effecting a remarkable democratic transition in recent months, and overall strong human development outcomes are a track record that would make any country proud. However, the country’s inward looking growth model based on non-tradable sectors and domestic demand amplified by public investment cannot be expected to lead to sustained inclusive growth going forward. A systematic diagnostic points to fiscal, competitiveness, and inclusion challenges as well as cross-cutting governance and sustainability challenges as priority areas of focus for sustaining progress in ending poverty and promoting shared prosperity.


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    Systematic Country Diagnostic

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    Sri Lanka,

  • Region

    South Asia,

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    Sri Lanka - Ending poverty and promoting shared prosperity : a systematic country diagnostic

  • Keywords

    private sector development specialist;Extended Term Consultant;Automated System for Customs Data;Micro, Small and Medium Enterprise;Liberation Tigers of Tamil Eelam;female labor force participation;equality of opportunity;small and medium size enterprise;carbon finance;real gross domestic product;travel time to facility;General Certificate of Education;impact of climate change;per capita consumption growth;access to financial service;contribution to poverty reduction;Demographic and Health Survey;spatial concentration of poverty;research and development institution;estate sector;foreign direct investment;Labor Market;poverty headcount rate;access to finance;labor market regulation;Internally Displaced Person;value added tax;Access to Electricity;increase in labor;outward orientation;working age population;quality of governance;conflicts of interest;women in leadership;national poverty line;measure of poverty;quality of education;access to job;gender wage gap;Poverty & Inequality;inequality of opportunity;maternal mortality rate;declining fiscal revenue;ownership of land;Public Expenditure Management;health and nutrition;personal income tax;source income;source of income;investment in capital;world market share;service delivery system;social protection program;public sector employment;public sector job;current account deficit;decline in agriculture;casual wage employment;global value chain;skilled labor force;human capital development;efficiency of resources;labor market dynamic;constraints to participation;Logistics Performance Index;formal sector worker;private sector counterpart;labor force characteristic;increase in remittance;Foreign Exchange Reserve;living in poverty;quality and relevance;land use plan;demand for worker;highly skilled worker;trade policy issues;sea level rise;access to infrastructure;forms of exclusion;human development outcome;access to health;difference in poverty;corporate income tax;consumer price index;human development indicator;national poverty headcount;national water supply;total factor productivity;high export taxes;international labor organization;real estate development;consumption per capita;Public Enterprise Reform;export processing zone;official poverty line;reduction in poverty;public service commission;natural asset;Public Spending;property right;public servant;global experience;internal conflict;ethnic group;aging population;fiscal space;regulatory function;educated woman;business enterprise;Macroeconomic Stability;employment opportunities;legal framework;public good;high poverty;night work;skilled workforce;fiscal consolidation;governance challenge;private-sector entity;hire woman;urban management;effective governance;Public Goods;extreme poverty;agricultural worker;ethnic community;inclusive growth;regulatory environment;Equal Opportunity;import regime;employment opportunity;social inclusion;incidence curve;occupational segregation;part-time work;employment growth;skill mismatch;formal employment;goods export;reserve adequacy;temporary worker;permanent worker;political settlement;productivity increase;poverty drop;weak framework;improving growth;tax system;rising cost;natural disaster;external financing;commercial term;public intervention;environmental issue;Finance Sector;public-sector employment;income account;governance reform;accountability mechanism;constitutional guarantee;customs administration;science study;poverty outcome;land right;employment rate;spatial disparities;political party;political parties;domestic trade;income earner;regulatory intervention;governance issue;psychological problem;state regulatory;household survey;government's capacity;market opportunity;Rural Sector;education institution;Gender Gap;government regulation;core functions;commodity boom;increasing share;population mean;improved connectivity;labor earning;informal worker;environmental risk;unskilled worker;job security;national saving;transport planning;vested interests;informal sector



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Sri Lanka - Ending poverty and promoting shared prosperity : a systematic country diagnostic (English). Washington, D.C. : World Bank Group.