The World Bank has warned the Sri Lankan government that if it does not take adequate steps to meet the needs of the weaker sections, the situation of poverty in the country may worsen. Sri Lanka is currently following the terms of the International Monetary Fund (IMF). Under this, the government has to reduce its expenditure. For this purpose, the government has cut the budget of public welfare schemes. The IMF issued a three billion dollar loan to Sri Lanka on onerous terms.
Now the World Bank has released a report on the state of poverty in Sri Lanka. According to this, the number of poor people in the country had doubled last year due to extraordinary inflation and rising unemployment. It is said in the report that the financial prospects for the year 2023 and 2024 are negative. Moreover, the reforms that have been implemented to raise these revenues may result in poorer estimates of poverty. The challenge of mitigating its adverse effects on the poor and vulnerable sections will remain critical during (economic) structural adjustment.'
Earlier human rights organizations Amnesty International and Human Rights Watch have also warned about the impact of the IMF's tough conditions on the poor and vulnerable. Both organizations said that the current situation in Sri Lanka will worsen the human rights situation. Now the World Bank has also said similar things to him.
Based on data from the World Bank, economic inequality is increasing in the country, the number of poor in urban areas has tripled compared to before the financial crisis, while the number in rural areas has doubled. The report said- 'It is estimated that the number of poor in the total population will remain more than 25 percent for the next few years. This is because of the many dangers created for the livelihood of the families.'
Sri Lanka defaulted in April last year due to the financial crisis. After the default, the doors of international credit were closed for Sri Lanka and this had a severe impact on its international trade. In the year 2020, 13 percent of the country's population was below the poverty line. The World Bank has said that in 2022 there is a huge increase in poverty and this number will reach 25 percent.
According to the World Bank, 25 lakh more people will go below the poverty line in the year 2022 alone. Citing the reasons for this, the report said that inflation had increased by 46 per cent last year, large numbers of people were laid off from jobs in the service and industrial sectors, and workers returned to villages at lower wages due to job losses in cities. Forced to work. Along with this, the remittances from people working abroad also decreased, which affected their families.
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