Policy Focus: "Clean Sri Lanka" vs. Street Economy 📈

The Clean Sri Lanka initiative, launched in early 2025 with an allocated budget of Rs. 6,500 Mn for 2026, faces a critical junction between environmental goals and the survival of the informal retail sector. Recent enforcement in Nuwara Eliya and Kandy highlights the tension between urban "beautification" and the livelihoods of low-income vendors. • Overall Economic Context • The program aims for a holistic transformation of social, environmental, and ethical standards across all sectors. • Budget 2026 emphasizes "Clean Sri Lanka" as a pillar for boosting tourism and "green jobs." • Despite a 5% GDP growth and stabilized inflation, essential costs remain high for daily wage earners. • Sectoral Impact: Street Trading & Retail • Pavement vendors in Nuwara Eliya report being cleared ahead of high-profile visits and the upcoming "April Season." • In Kandy, a total ban on street vending was implemented on Jan 1, 2026, to ensure "public convenience." • Vendors offer essential goods (apparel, electronics, vegetables) at fractions of mall prices (e.g., torches at Rs. 2,000 vs Rs. 8,000), serving as a vital "poverty buffer." • Key Concerns & Observations • Informal economy: Risk of excluding small-time traders in favor of large Colombo-based businesses during peak tourist seasons. • Livelihoods: Sellers note that the "cleanliness" drive often equates their presence with "litter," despite the lack of alternative trading infrastructure. • Diversification: Critics urge linking poverty eradication to the initiative to ensure "Clean Sri Lanka" does not marginalize the working class.