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Analysis of the Fisheries Sector in Sri Lanka: Guided Case Studies in Value Chain Development for Conflict-Affected Environments
(United States Agency for International Development, 2008-03) Arunatilake, Nisha; Gunawardena, Asha; Marawila, Dilhani; Samaratunga, Parakrama; Senaratne, Athula; Thibbotuwawa, Manoj
Sri Lanka has been affected by prolonged armed conflict, and attendant chronic governance failures, for the past three decades. Evaluating its impact on the performance of specific productive sectors, such as ocean fisheries, remains a timely and important exercise. The value chain analysis methodology offers an insightful way to approach this critical topic due to its focus on identifying the actual and potential competitiveness of particular products and the areas of possible economic development and growth. The USAID AMAP program commissioned this study to ascertain the ability of a value chain analysis to determine the impact these two types of conflict have had on the fisheries industry in southern Sri Lanka—both the direct and indirect physical and other effects the armed conflict has inflicted and the structural consequences of institutional and governance failures. The study used the analysis to compose recommendations for effectively developing the capacity of the fisheries sector to contribute to equitable economic opportunities in Sri Lanka. The research team based their analysis on data from primary and secondary sources at both the national and regional levels. Team members obtained secondary data from fishery-related institutes—community-level organizations, the Ministry of Fisheries and others—and used a participatory appraisal approach to collect primary data from stakeholders involved directly and indirectly in the fisheries value chain—fishermen, traders, processors, government officials and other informed groups. The team selected three study sites—Negombo, Chillaw and Hambanthota—and convened focus groups representing the ethnic and religious heterogeneity of the country’s fishing communities and the range of impacts the conflict was having on different regions of the country. The study addresses the research question, ‘How can value chain analysis and the value chain framework help to identify and understand both the major opportunities for upgrading and the driving constraints to market growth of the fisheries sector given the context of conflict?’ To fully demonstrate the opportunities and constraints associated with the direct and indirect impacts of the conflict, the team developed a value chain/conflict dynamics matrix that identifies both the different chain segments affected directly and indirectly by conflict and the ways in which they are affected. Further analysis of the opportunities and constraints posed by the various dimensions of the conflict yields case-specific examples of the ways the conflict interacts with and affects a given value chain. Opportunities generated by the continuing violent conflicts and related institutional failures in Sri Lanka are negligible compared to the large number of constraints they present to the entire chain, including lack of access to and competitiveness in end markets; sluggish or dormant firms and supporting markets; the need for firm-level upgrading, and a poor business enabling environment. The limited supply of fish to end markets, both domestic and export, and the increased cost of inputs are the most visible impact of conflict on the fisheries industry at the present time. Further, increased security measures and related expenditures have increased the transaction costs for the industry. Such conditions have made ocean fishery a high-cost industry in Sri Lanka, thus reducing not only its competitiveness but also its ultimate potential for growth and ability to act as a driver of poverty reduction. Many entrepreneurs in Sri Lanka’s fisheries industry have identified the constraints to and potential of the sector, but they are unable to bring about substantial change in the conflict-affected environment. The research concludes that the current situation is one of impact-mitigation and maximization of gains because of constraints imposed by the conflicts. Issues related to the generation of a favorable enabling environment through the improvement of public infrastructure (harbor facilities and roads) and services (research, extension and institutional support such as policy reform, quality assurance, input delivery, etc.) depend primarily on the capacity and commitment of relevant state agencies. Although private-sector actors may be able to play a role in advocating for needed reforms the weak governance environment poses obstacles to targeting such efforts and driving meaningful change. To improve competitiveness of the industry, the state should focus on identifying niche markets and product categories, introducing technology, facilitating support services, revising existing trade and export policies and developing needed infrastructure. The private sector can improve the functioning of the value chain through wider access to credit, infrastructure enhancement and increased inter-firm cooperation. These changes are not easily implemented by individual actors, but are possible through collective action with existing fisheries cooperative societies playing a role. In addition, the development of micro-credit facilities is a promising way to circumvent the problems fishers experience with formal financial institutions and could provide them with an alternative to the private moneylenders who are part of an often highly exploitative industry. Cooperative societies can increase fishers’ bargaining power with large organizations higher up the chain and conduct lobbying efforts with state authorities for better operating conditions. Successful cooperative organizations have the potential to enter into public-private partnerships to facilitate the provision of much-needed infrastructure, such as harbors, anchorages and related facilities and to participate in broader development of the sector. To further an understanding of how the conflict affects Sri Lanka’s fisheries industry and how the chain might realize its competitive potential, this study analyzes the value chain as well as the way it interacts with direct and indirect conflict dynamics. Section 1 provides an overview of the conflict context and the fisheries sector and identifies the key development and relief initiatives currently being implemented. Section 2 presents the methodology employed in conducting this study, and Section 3 gives a detailed analysis of the conflict environment in Sri Lanka.1 In Section 4, a detailed analysis of the fisheries industry leads to a discussion of the links between value chain and conflict dynamics. The concluding section highlights insights from applying the value chain analysis in a conflict-affected context, as well as possible ways forward identified by the integrated conflict/value chain analysis.
Are there good quality teachers for all classrooms in Sri Lanka?
(Institute of Policy Studies, Sri Lanka, 2017-12) Arunatilake, Nisha; Abayasekara, Ashani
Highly qualified teachers in all classrooms are necessary for implementing education reforms aimed at modernising and improving education in the country.Using school census data for 2016, this study examines the adequacy of teachers for teaching mathematics,English and Science at the secondary level in Sri Lanka. across provinces and across different school categories.The study also analyses the distribution of government expenditure on teacher salaries across different types of schools. The study finds that although the available number of teachers for different subjects is sufficient at the national level, the available in-field and experienced teachers are inadequate to meet the current demand for such teachers. The study further finds that the deployment of teachers and the distribution of public expenditure on qualified teacher salaries are not equal across different categories of schools.
Better schools for better O-Level results in Sri Lanka
(Institute of Policy Studies, Sri Lanka, 2017-11) Abayasekara, Ashani; Arunatilake, Nisha
The Economics of Tobacco in Sri Lanka
(Center for Tobacco Control Research and Education, UC San Francisco, 2004) Arunatilake, Nisha; Opatha, Maduwanthi
This paper describes trends in tobacco use in Sri Lanka, assesses the economic contribution of the industry (jobs, earnings, tax revenues and trade balance), and analyses the relationship between demand for cigarettes and prices and incomes, looking at different socioeconomic groups. It uses the estimated elasticities to simulate the likely impact of a tax increase on prices, government revenues and on demand, expenditures and tax burdens of different socio- economic groups.
Education Participation in Sri Lanka—Why all are Not in School
(Elsevier, 2006) Arunatilake, Nisha
Despite Sri Lanka’s 1990 commitment to provide 10–11 years of free education to all, only 93% of children in the 5–14-year-old age group were in school by the year 2000. Moreover, the education participation rates are not equitable across the country, varying by socio-economic groups. This paper examines the determinants of school non-participation of 5–14-year olds in Sri Lanka using household, community and school-level information obtained from an island-wide survey. The study finds that demand side problems such as poverty, direct and indirect costs of schooling, and cultural factors as well as supply side shortcomings such as quality of education seem to affect schooling behavior of children. Policies facilitating compulsory education in the country at present gives prominence to awareness building, monitoring and improvements in education delivery. The results show that these efforts need to be complemented by other supply side improvements and income transfer measures, especially for the poorest, to achieve universal school attendance.
Elasticity estimates for cigarettes in Sri Lanka
(Institute of Policy Studies, Sri Lanka, 2020-10) Arunatilake, Nisha; Weerasekara, Harini; Thilanka, Chamini
Explaining Labor Market Imbalance in Sri Lanka: Evidence from Jobsnet Data
(World Bank, 2010) Arunatilake, Nisha; Jayawardena, Priyanka
High unemployment among youth, mainly resulting from prolonged job search, has been of concern to policy makers in Sri Lanka for close to four decades . Numerous studies have explored the reasons for youth unemployment in the country and have offered several hypotheses that focus on job search behavior of individuals and hiring practices of employers . Many of these studies rely on household data sets , which collect information only from employers on availability of vacancies and their nature. We take advantage of newly available Jobsnet data, containing detailed information on job seekers and job vacancies , to test the validity of some of the existing explanations regarding unemployment in the country . Jobsnet data come from the information source of a web-based interface that facilitates job placement. Capitalizing on information available from both the demand and supply sides of the labor market, the study examines the excesses and shortages in Sri Lanka’s labor supply . This study also evaluates the usefulness of Jobsnet as a source of labor market information.
Facilitating night work for women in Sri Lanka
(Institute of Policy Studies, Sri Lanka, 2020-11) Arunatilake, Nisha
The Impact of Population Aging on the Labor Market: The Case of Sri Lanka
(Institute for the Study of Labour (IZP), 2008) Vodopivec, Milan; Arunatilake, Nisha
Sri Lanka’s population is predicted to age very fast during the next 50 years, bringing a slowdown of labor force growth and after 2030 its contraction. Based on an original, 2006 representative survey of old people in Sri Lanka conducted as a part of this study, the paper examines labor market consequences of this process, focusing on retirement pathways and the determinants of labor market withdrawal. The paper finds that a vast majority of Sri Lankan old workers are engaged in the informal sector, work long hours, and are paid less than younger workers. Moreover, as one of the first findings of its kind, the paper shows that labor market duality that characterizes most developing countries carries over to old age: (i) previous employment is the most important predictor of the retirement pathway; (ii) older workers fall into two categories: civil servants and formal private sector workers, who generally stop working before they reach 60 because they are forced to do so by mandatory retirement regulations, and casual workers and the self-employed, who are forced to work until very old age (or death) due to poverty and who stop working primarily because of poor health; and (iii) the option of part-time work is used primarily by workers who held regular jobs in their prime age employment, but not by casual workers and self-employed.
Improving female labour force participation promotes productivity economic growth
(Institute of Policy Studies of Sri Lanka, 2023-03-15) Arunatilake, Nisha
The incidence of taxes and spending in Sri Lanka
(World Bank, 2017) Arunatilake, Nisha; Inchauste, Gabriela; Lustig, Nora
Labor Market Trends and Outcomes in Sri Lanka
(World Bank, 2010) Arunatilake, Nisha; Jayawardena, Priyanka
The Sri Lankan labor market is currently experiencing several changes that affect youth employment in the country . First, the country has one of the fastest-aging populations in the world—the youth share of the population in the country is declining, while the adult share is rising. As a result, the labor force has aged and its rate of growth has declined. If current participation rates remain constant, the Sri Lankan labor force is expected to begin to shrink around. How are these changes affecting the labor market? Is Sri Lanka making optimum use of its diminishing labor resources? Second, Sri Lanka has grappled with the problem of high unemployment rates among youth over several decades (Rama 1999). In recent times overall unemployment rates in the country have come down steadily . Has that decline led to a corresponding improvement in youth employment prospects? Finally , globalization and technological change have fueled the demand for better -skilled workers in information technology (IT) and IT -enabled services both internationally and domestically . At the same time, demand for skilled migrant workers is growing globally (Lewin and Caillods 2001). To take advantage of these emerging opportunities , the country needs to have a skilled, globally competitive workforce . Is the education sector in the country preparing young workers to meet the skill demands of these emerging labor markets? To find answers to these questions , this chapter examines the trends in labor market indicators over time for Sri Lanka, with international comparisons , where appropriate . It begins with a description of the major data sources and definitions used in the study . It then looks at trends in the size of the labor force , employment, unemployment, and earnings distribution before offering some concluding thoughts.
Living wage report Sri Lanka
(2019-05) Thibbotuwawa, Manoj; Jayawardena, Priyanka; Arunatilake, Nisha; Gunasekara, Neluka
Returning home:experiences & challenges: the experience of returnee migrant workers of Sri Lanka
(Institute of Policy Studies, Sri Lanka, 2014-09) Jayaratne, Suwendrani; Perera, Nipuni; Gunasekara, Neluka; Arunatilake, Nisha
School funding formulas in Sri Lanka
(2013) Arunatilake, Nisha; Jayawardena, Priyanka
Education Quality Inputs (EQI) scheme, a formula based resource allocation scheme, was introduced to give greater authority and resources to schools in decision making for improving teaching and learning methods in schools. This paper assesses its effectiveness in distributing funds and improving learning outcomes.Results show that the EQI scheme has improving equity. Smaller less facilitated schools rely on EQI funds more, but their utilization of funds is weaker. Evidence suggests that EQI funds have improved teaching, school attendance and learning. However, the effective usage of EQI funds is being affected by several factors as discussed in the paper.
Sri Lanka
(SAGE Publications, 2011) Arunatilake, Nisha; Jayawardena, Priyanka; Weerakoon, Dushni
Sri Lanka tea industry in transition: 150 years and beyond
(Institute of Policy Studies, Sri Lanka, 2018) Wijayasiri, Janaka; Arunatilake, Nisha; Kelegama, Saman
Tax reforms in Sri Lanka: will a tax on public servants improve progressivity?
(Partnership for Economic Policy, 2012-12) Arunatilake, Nisha; Jayawardena, Priyanka; Wijesinha, Anushka
The Sri Lankan government implemented tax reforms in 2011, including removal of the tax exemption given to public servants and reduction of personal income tax rates in order to improve tax compliance from pay-as-you-earn (PAYE) tax payers. This study evaluates the 2007 and 2011 tax systems in order to examine the effects that taxing the income of public sector employees has on total tax revenues and the tax base. The study also compares the distributional effects of the different tax systems. Study further conducts simulation analyses to assess the most progressive means of achieving the 2007 tax revenue levels. Implications for tax evasion are also examined under different tax systems. The study finds that the 2011 tax reforms reduce tax revenue by 48 percent relative to the structure of income taxation in 2007. This decline in tax revenues occurs even though income taxes are extended to public sector workers because the 2011 tax reforms reduced the rate of income taxes across the board and increased the ta x-free threshold. Our simulations show that tax revenues would have risen if the reforms were limited to introducing income taxes to public servants. The resulting hypothetical) tax system would also have been more progressive than the tax structure resulting from the 2011 reforms. The study evaluated the distributional impacts of modifications to the 2011 tax system which would increase tax revenue to their level in 2007. More specifically, the present study finds that the most progressive way to attain this tax revenue target would be to increase tax rates on taxable income by 6 percentage points and to lower the tax-free threshold from LKR 600,000 to LKR 400,000.

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