A comprehensive survey conducted by the Department of Census and Statistics (DCS) has officially documented the profound effects of the economic crisis that has persisted since last year on households in Sri Lanka. Released last week, the survey delves into various aspects, including the impact on the education sector, employment, personal and household income, household expenditure, coping mechanisms, health, indebtedness, and household food consumption.
According to the survey, the economic crisis has resulted in significant changes in how households manage their finances. A considerable number of households have experienced a decrease in income due to various economic factors, prompting alterations in spending patterns.
Key findings from the survey include:
- Income and Expenditure Impact: The economic crisis has significantly affected household finances, with 60.5% of households experiencing a decrease in total income.
- Indebtedness: Approximately 54.9% of households in Sri Lanka are currently in debt, with mortgage matters (31.0%), banks (21.9%), and money lenders (9.7%) being the primary sources of indebtedness.
- Crisis Strategies: About 21.9% of households nationwide have implemented crisis strategies to address food scarcity or financial constraints, with a higher proportion (22.8%) in rural areas.
- Coping Mechanisms: Among households experiencing reduced income, 6.6% turned to secondary jobs or additional sources of income as the most common coping strategy.
- Government Policy Implications: The DCS emphasized that the survey data is invaluable for informing government policies, social interventions, and support mechanisms to alleviate hardships faced by households across the country.
The survey acknowledges that Sri Lanka is grappling with one of its most challenging economic crises since independence in 1948, with origins traced back to the Easter Sunday attacks in 2019 and exacerbated by the COVID-19 pandemic. The initiative to conduct the comprehensive survey stems from the recognition of the critical need to understand how households are coping with the crisis, providing insights into their challenges, coping mechanisms, and shifts in access to essential services. Source – DailyFt
