Policy Brief

Colombo Urban Lab’s third policy brief on the impact of Sri Lanka’s economic crisis on Colombo’s working class poor communities focusses on household debt and social security. Our ongoing research with communities in Colombo show an increase in household debt as families struggle with competing expenses - food, utility bills, transport, education, health, livelihood. Poverty and vulnerability presents itself very differently in Colombo, and while the streets of Colombo may look like it is back to normal, the crises faced by working class families tell a different story. 

The impact of the economic crisis on the working class poor of Colombo over the past year cannot be overstated. As we highlighted in our May 2022 policy brief, most of these households that were already affected by the pandemic due to a loss of daily wage work following the imposition of COVID-19 lockdowns, were cash-strapped and struggling to make ends meet when the economic crisis hit last year. The April 2023 policy brief gives an update on the current status of working class poor households and those working in the informal sector in Colombo. This includes the impact of the electricity tariff hikes on them, a commentary on the ongoing Welfare Benefits Board enumeration of households, and recommendations on how the State and policy makers can support these families in crisis.