📈 Sri Lanka Face Stark Economic Disparities Amid Recovery

• Wage & Income Crisis: EPF data reveals 92% of formal private sector employees earn under Rs. 100,000/month. Despite regaining upper-middle income status, Sri Lanka’s 2026 poverty rate stands at 65.4% under the PPP $ 8.3/day threshold, with World Bank projecting only a minor dip to 63.4% by 2028. • Household Strain & Public Sentiment: World Bank reports 33% of households suffered moderate or severe food insecurity in 2025. Recent polls show 51% of respondents reported worsening household finances (CPA survey), while Verité Research indicates only 42% believe the economy is improving. • Sector & Welfare Dynamics: Positive steps include wage hikes in the plantation sector, though brain drain and low-quality job creation persist. IMF has mandated a minimum floor for social spending and urged Colombo to implement targeted wealth taxes, contrasting the state's reliance on high indirect taxes and funding inactive SOEs.