Poverty cutoff mark rises by 50%
PANEETHA AMERESEKERE- JAN 08 2019
Rising inflation, coupled with the rising cost of living (CoL), driven by the effects of the 26 October abortive political coup, has seen the island’s poverty cutoff mark increase sharply by 50% in a mere two months to last month, compared with its overall increase for the totality of last year, official data showed.
Sri Lanka’s poverty cutoff mark which was Rs 4,648 as at end October, rose to Rs 4,711 last month, an increase of Rs 63, compared to an overall increase of Rs 127 for the totality of last year. The poverty cutoff mark as at December 2017 was Rs 4,528.
Foreign exits from the country’s financial markets as a result of the 26 October coup, coupled with importer panic has led to a rapid depreciation of the Rupee since, pushing up inflation and CoL pressures as Sri Lanka is an import dependent economy. Matters have been compounded by the Central Bank of Sri Lanka’s high money printing since 26 October to finance the Government in the backdrop of inadequate revenue, thereby causing further inflationary and CoL pressures.
The official poverty cutoff mark is the minimum amount of money required per person, per month, to be declared as being non poor. Sri Lanka’s last poverty census was in 2016. At that time the poverty cutoff mark was Rs 4,166. It was then found that 4.1 per cent or 843,913 of the island’s population were in poverty.
Sri Lanka’s poverty cutoff mark which was Rs 4,648 as at end October, rose to Rs 4,711 last month, an increase of Rs 63, compared to an overall increase of Rs 127 for the totality of last year. The poverty cutoff mark as at December 2017 was Rs 4,528.
Foreign exits from the country’s financial markets as a result of the 26 October coup, coupled with importer panic has led to a rapid depreciation of the Rupee since, pushing up inflation and CoL pressures as Sri Lanka is an import dependent economy. Matters have been compounded by the Central Bank of Sri Lanka’s high money printing since 26 October to finance the Government in the backdrop of inadequate revenue, thereby causing further inflationary and CoL pressures.
The official poverty cutoff mark is the minimum amount of money required per person, per month, to be declared as being non poor. Sri Lanka’s last poverty census was in 2016. At that time the poverty cutoff mark was Rs 4,166. It was then found that 4.1 per cent or 843,913 of the island’s population were in poverty.