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    Transforming tobacco farming in Sri Lanka:a value chain analysis
    (Institute of Policy Studies of Sri Lanka, 2023) Dissanayaka, Nimesha; Hirimuthugodage, Dilani; Thibbotuwawa, Manoj
    Tobacco cultivation was first introduced to Sri Lanka by the Portuguese in the 16th century. Since then, significant efforts have been made to increase tobacco cultivation in the country. In 1990, approximately 0.47% of agricultural land, equivalent to 8,920 hectares (Ha), was under tobacco cultivation. However, the stimulus policy interventions granted to tobacco cultivation dropped substantially since the 1990s with the global drive against tobacco. The widespread belief is that supporting a shift from tobacco to alternative crops is essential due to its negative consequences. Tobacco cultivation has been identified as a social stigma because of the long-term impacts on the environment and livelihoods, which appear to exceed the short-term benefits such as income generation and employment creation. Further, a growing body of literature highlights the global negative consequences of tobacco cultivation, including high labour requirements for tobacco cultivation, environmental degradation, and health risks associated with leaf harvesting and leafcuring
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    Unveiling trade potential:an ex-ante analysis of the Sri Lanka-Thailand free trade agreement
    (Institute of Policy Studies of Sri Lanka, 2023) Wijesinghe, Asanka; Rathnayake, Nilupulee
    Sri Lanka and Thailand are engaged in expedited negotiations for a free trade agreement(FTA) to enhance bilateral trade, facilitate trade activities, and promote investments. Anex-ante analysis employing a partial equilibrium analysis framework is conducted to assess the potential benefits and drawbacks of the agreement. The analysis considersexisting tariffs, bound tariffs, binding overhangs, and the development of offensive lists for both countries. Simulations are performed for 47 Global Trade Analysis Projects(GTAP) sectors, utilising sector-specific Armington elasticities to enhance the accuracyof the estimates.
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    Tobacco smoking in Sri Lanka: identifying and understanding the last mile smokers
    (Institute of Policy Studies of Sri Lanka, 2020) Madurawala, Sunimalee; Karunanayake, Chathurga; Thilanka, Chamini
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    Tobacco smoking cessation: lessons and policy options for Sri Lanka
    (Institute of Policy Studies of Sri Lanka, 2021) Madurawala, Sunimalee; Karuanayake, Chathurga
    Sri Lanka has, in general, madeimportant strides in reducing the overall smoking prevalence rate over time. However, if smoking prevalence is to decrease further, it is important that measures are taken to reduce the prevalence rate among residual smokers - the Last Mile Smokers. The Last Mile Smokers are the remaining groups in which the smoking prevalence rates are higher than the overall smoking prevalence rate in the country. Last Mile Smokers are, in general, less responsive to system-wide measures such as smoking and advertising bans as well as health awareness campaigns. As such, targetted smoking cessation policies and programmes play a vital role in supporting these groups to quit smoking effectively. However, given that tobacco products contain nicotine, a highly addictive drug on par with heroin and cocaine, smoking cessation is often a challenging task and a long-term process.
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    Talking Tobacco: how reduced consumption benefits the economy
    (Institute Of Policy Studies Of Sri Lanka, 2021) Jayawardena, Priyanka; Weerasekera, Harini
    On average, a tobacco-user household spends nearly LKR 2,000 per month on tobacco, constituting 4 per cent of the household budget. Spending on tobacco can drive out other critical household expenditures, including basic needs. This 'crowding out effect' would be the greatest for poor families, affecting not only the smoker but the rest of the family as well.
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    Shadow education in Sri Lanka during Covid-19 : trends,impacts, and role in relation to mainstream education
    (Institute of Policy Studies of Sri Lanka, 2023) Abayasekara, Ashani; Perera, Usha; De Silva, Thisali
    The coronavirus (COVID-19) pandemic has created the largest disruption to education systems in recent history, leading to unavoidable and substantial learning losses among students worldwide. While a growing literature has examined the impacts of extended school closures on multiple aspects of education, the focus has almost exclusively been on formal mainstream education, as opposed to "shadow education" - more commonly known as private supplementary tutoring.
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    Public Investment For Closing The SDG Finance Gap: Sri Lanka Perspective
    (Institute Of Policy Studies Of Sri Lanka, 2023) Fernando, Lakmini
    Realising 'United Nations 2030 Agenda for Sustainable Development' requires massive investment allocation as limited financial resource availability decelerated the achievement of sustainable development goals (SDGs). Economic crisis loomed with the COVID-19 pandemic, has further hindered SDG progress. Therefore, theachievement of 2030 Agenda relies on the effectiveness of recovery strategies and financial capabilities. Public investment plays a significant role in 2030 Agenda, however, systemic research on the nexus between public investment and SDGs is limited. Hence, assessing SDGs investment gap is significant and supports sufficient flow of funds to 2030 Agenda. The additional investment requirement in 2030 to reach key SDGs is 4% of the gross domestic product (GDP) for emerging market economies (EMEs) and 15% for low-income countries(LICs). Using an input-outcome based innovative costing methodology, Sri Lanka's additional investment requirement for SDGs by 2030 is estimated to be around United States Dollars (USD) 1.4 trillion (Tn) or 12.5 percentage pointsof GDP. On average, public investment has been around 5-7% of GDP over the last decade, hence, allocation ofadditional funds for SDGs is challenging.The 2030 Agenda requires placing equal importance on economic, social and environmental objectives. However,Sri Lanka's public investment ratio in these three dimensions is 80:19:1 and it is long been skewed towardsinfrastructure development. The SDG framework can be used as a foresight planning tool to minimise these disparities. Further, strengthened domestic resource mobilisation, use of innovative financing options and enhanced institutional quality are vital to achieve the 2030 Agenda for Sri Lanka.
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    Palm Oil Industry In Sri Lanka: An Economic Analysis
    (Institute Of Policy Studies of Sri Lanka, 2023) Pathiraja, Erandathie; Samaraweera, Ruwan; Fernando, Hiruni; Bogodage, Jaann
    Palm oil is the main edible oil source consumed in the world. Sri Lanka began importing palm oil a few decades back mainly due to the increasing local demand driven by population and income growth, changes in food habits and developments in food and related industries. Considering the rising demand for imported palm oil and the potential suitability of climatic and soil factors in the country, oil palm was allowed to be cultivated on 20,000 hectares (ha) as part of a strategy to promote import substitution. Hence, regional plantation companies (RPCs) were permitted to cultivate oil palm in marginal rubber lands in selected districts. However, oil palm cultivation and consumption are globally criticised for its environmental and health impacts regardless of rewarding factors such as low cost and versatility in food and many other industries. Sri Lanka also paid attention to possible environmental hazards and health impacts of consuming palm oil as well as resistance from local environmental activists. As a result, oil palm cultivation was banned and a phase out within 10 years was proposed as a policy decision. Subsequently, the country took measures to restrict the importation of palm oil, considering its health hazards. Yet, alternatives to satisfy the local demand are limited. Hence, the decision was revised to keep the market open under licences. However, the industry investors claim that the criticism is unreasonable. Therefore, this study explores the economic aspects of the industry, such as costs and returns, contribution to the economy, tariff protection, market linkages etc., including potential environmental and social issues in the palm oil industry value chain in Sri Lanka.
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    Elasticity Estimates for Cigarettes in Sri Lanka
    (Institute of Policy Studies of Sri Lanka, 2020) Arunatilake, Nisha; Weerasekara, Harini; Thilanka, Chamini
    Tobacco is extremely harmful to health and has been found to increase the risk of many non-communicable diseases including cancer, heart diseases, and respiratory illnesses. The World Health Organization Framework Convention on Tobacco Control (WHO FCTC), of which Sri Lanka is a signatory, was formed to end the tobacco epidemic. Since signing the WHO FCTC treaty in 2003, Sri Lanka has introduced several initiatives to control tobacco use in the country. These measures have decreased the tobacco incidence in Sri Lanka, but tobacco consumption remains high with 28.1 per cent of males being smokers in 2018 (World Health Organization.
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    A Three-wheeled attraction: an analysis of Three-Wheeler drivers in Sri Lanka's labour market
    (Institute of Policy Studies of Sri Lanka, 2022) De Silva, Thisali
    The existing labour shortage in Sri Lanka has been inflicting high economic pressure not only on agricultural and industrial sectors but also on labour supply for domestic activities countrywide. Manufacturing sector industries such as apparel and construction, and service sector industries like tourism suffer from labour shortages that the country is currently experiencing. The shortage of people in some industries, such as the construction sector, is attributed to the reluctance of youth to take up this type of employment (Praveen et al. (2016)).
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    Insurance to promote human-wildlife coexistence
    (International Institute For Environment and Development, 2023)
    This guide is for governments, conservationist practitioners and insurers to design and introduce insurance schemes to reduce human-wildlife conflict (HWC) and promote human-wildlife coexistence. HWC imposes significant costs on poor, small-scale farmers and pastoralists in many parts of the world, particularly those living adjacent to protected areas and on larger-scale operations such as plantations. Costs include losses from crop damage, livestock injury or death, property damage and human injury or death. Opportunity and other indirect costs add to the burden of HWC. Biodiversity is also impacted as wildlife is often injured or killed in retaliation.
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    Talking tobacco: how reduced consumption benefits the economy
    (Institute of Policy Studies, Sri Lanka, 2021-03) Jayaweera, Priyanka; Weerasekara, Harini
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    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.
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    National level implications of SDG implementation: the case of Sri Lanka
    (Southern Voice on post-MDG international Development Goals, 2017-03) Tilakaratna, Ganga; Nanayakkara, Wimal; Madurawala, Sunimalee; Jayaratne, Suwendrani; Wickramasinghe, Kanchana
    Sri Lanka is one of the signatories of the UN mandate on Agenda 2030 for Sustainable Development. The Sustainable Development Goals (SDGs) comprise 17 goals and 169 targets, ranging from poverty, inequality, health, education and environment. This paper examines the implications of SDG implementation in Sri Lanka, in particular how the SDGs are embedded in the national context, and issues related to coordination, monitoring, partnerships and stakeholder participation. It reveals that most of the SDGs and their targets are relevant to Sri Lanka, and are in line with the priority areas. The study stresses the need of a designated national-level body to coordinate activities carried out by different stakeholders and to drive implementation and monitoring of the SDGs in Sri Lanka. Participation of a range of stakeholders, including the government, international organisations, private sector and civil society organisations, academia and general public, is crucial for the successful implementation of SDGs. Inadequacy of awareness of the SDGs among many stakeholders and the general public is a key constraint to the effective implementation of the SDGs. Partnership and stakeholder participation can play an important role in raising awareness and monitoring of SDGs, sharing knowledge/expertise, as well as in mobilising financial and technical resources. Monitoring the progress of SDGs will also require strengthening the capacity of the national statistics office and other relevant agencies involved in the data compilation.
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    Social protection and the MDGs in Sri Lanka
    (Southern Voice o post-MDG international Development Goals, 2014) Tilakaratna, Ganga
    The role of social protection in achieving the Millennium Development Goals (MDGs) has been widely recognised. The Sri Lankan experience demonstrates that social protection policies and programmes carried out by the successive governments over decades have helped make substantial progress on many goals. The importance of social protection goes beyond MDGs. The issues of ageing population, informalisation of work, low female labour force participation, and increasing vulnerability to shocks also stress the need for comprehensive social protection systems. Social protection has to be a key element of the post-2015 development agenda – either as a goal, or as an instrument to achieve several goals
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    Social protection in Sri Lanka: current status and effect on labor market outcomes
    (Institute for Human Development, 2015) Tilakaratna, Ganga; Jayawardana, Sahan
    There are many social protection programs in Sri Lanka targeting vulnerable groups such as the poor, elderly, disabled, children and women. These programs vary from cash and in-kind transfers to pensions, insurance and livelihood development programs. Despite the multitude of programs, the current social protection system has many weaknesses. This study provides a detailed analysis of Sri Lanka’s social protection system and further examines the relationship between social protection and labour market outcomes such as the labor force participation and employment status. The study uses both quantitative and qualitative analyses. The quantitative analysis reveals that social protection income as a share of household expenditure has a marginal negative effect on the probability of an individual’s labour force participation. This relationship holds for the prime age (25-59 years) and the elderly categories of both genders while no significant effect is observed on the youth. With regard to the effect on employment status, the study reveal a positive effect on employment categories like own account workers, but the marginal effects are very small, hence no conclusive interpretations could be made. The study stresses the need for improving the current social protection system, particularly its efficiency and resource allocation within the system.
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    Return and reintegration without assimilation: South Asian migrant workers in the gulf during COVID-19
    (Institute of South Asian Studies, 2020-06) Weeraratne, Bilesha
    Temporary labour migration and related remittances are integral components of the South Asian economies. A significant portion of labour migrants from this region head to the Gulf countries. Nevertheless, migrant workers to the Gulf are barred from formally integrating into the socio-economic context in their country of destination. In this context, using the case of the Kuwait Amnesty and other examples during COVID-19 pademic, this paper reflects on the disproportionate division of responsibilities between the South Asian and Gulf countries in terms of the assimilation, return and reintegration of migrant workers, in an attempt to improve the well-being of migrant workers through the frameworks of the Sustainable Development Goals and the Global Compact for Safe, Orderly and Regular Migration.
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    Financial inclusion, regulation, and education in Sri Lanka
    (Asian Development Bank, 2014-11) Kelegama, Saman; Tilakaratna, Ganga
    Sri Lanka has achieved a high level of financial inclusion compared to other South Asian countries. Its financial sector comprises a wide range of financial institutions providing financial services such as loans, savings, pawning, leasing and finance, and remittance and money transfer facilities. There is also evidence that a larger share of households in Sri Lanka accesses multiple financial institutions for their credit and savings needs. However, the use of insurance services, ATM facilities, e-payments, and mobile banking, is relatively low. Financial education is ad hoc and lags behind financial innovation and new products. The information technology (IT) literacy rate is only 35% in Sri Lanka, and with the growing IT–finance nexus, financial awareness and education have become all the more important. Strengthening the regulatory framework governing the microfinance sector and client protection is also crucial for improving financial inclusion in Sri Lanka. Much scope remains to improve financial inclusion, particularly related to cost and quality of financial services provided, and the sustainability of financial institutions.
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    Sri Lankan migrant abroad: results from a rapid online survey during the spread of COVID 19
    (Institute of Policy Studies, Sri Lanka, 2020) Weeraratne, Bilesha
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    Sri Lanka's macroeconomic challenges: a tale of two deficits
    (Asian Development Bank, 2019-03) Weerakoon, Dushni; Kumar, Utsav; Dime, Roselle
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