Sri Lanka achieved ‘Upper Middle Income Country’ (UMIC) status in July 2019, as the country’s Gross National Income (GNI) increased from USD 3,840 per capita in 2018 to USD 4,060 per capita in 2019. Sri Lanka scraped by the line of demarcation to enter the new threshold for UMICs and is still at the lower end of the spectrum. This blog presents some important points statisticians, planners, and policymakers should consider when developing methodologies and measurements to estimate poverty in Sri Lanka in the future.
Many Sri Lankans live just above and very close to the National Poverty Line (NPL). For instance, more than 400,000 persons fall within 10 per cent above the NPL and around one million persons live within 20 per cent above the NPL. As such, it is important to have a broad look at poverty, when developing strategies to alleviate poverty. In this blog, Wimal Nanayakkara, explains the methodology used in determining NPL and the Global Poverty Lines (GPLs), when estimating poverty in Sri Lanka and attempts to clear some misconceptions on these poverty lines, while stressing the importance of estimating poverty using different measures and dimensions.