Livelihood Development

Sri Lanka was the second worst affected country in the region, suffering extensive losses. It has been estimated that more than 35,000 people died in the tsunami, over 15,000 were injured and in excess of 5,000 were reported missing. Nearly a million people were displaced from their homes. About 150,000 people lost their main source of income as a result and the unemployment rate more than doubled from 9% to 20% in the affected districts of Sri Lanka.

Some fishing communities had been decimated; their boats, their sole means of making a living, had been destroyed. Small hotels and restaurants that cater to domestic and foreign tourism had been damaged or completely destroyed along the coast. Farmers' livelihoods were threatened by the loss of crops, agricultural inputs and implements. Salt contamination of farming fields and damage to irrigation systems contributed to paint a bleak picture of the future.

Two significant national income-earning sectors - fisheries and tourism - were badly affected, a fact that would have negative implications for the wider population. In an initial assessment, the IMF said, “The fishing industry has been devastated, agricultural production may be affected and tourism will suffer, especially in the short term… The broader macro-economic impact will clearly be substantial.”

In response to a Flash Appeal, several aid agencies came forward and provided grants in cash and kind. While these provided immediate relief, there were some undesirable consequences, with the local population showing signs of becoming dependent on these handouts.

A Chinese proverb says, “Give a man a fish and he will eat for a day. Teach him how to fish and he will eat for a lifetime.” It was clearly necessary to help people regain their livelihoods. Therefore, in order to help people recover from the disaster, SSGF’s ‘Livelihood Development’ initiative focussed on the following project areas:
· Rebuilding the capacity of communities to enhance their economic productiveness and their participation in economic and social life
· Creating employment that would either be sustainable or enhance sustainable pre-existing livelihoods
· Assisting entrepreneurs, particularly women in small businesses, who wished to resume producing and selling their products
· Promoting women’s welfare with a special focus on the improvement of their participation in economic development

By helping entrepreneurs to restore their livelihoods, the SSGF programme gave them the means to provide for themselves, their families and their communities. Specific programmes encouraged women’s participation in economic development, enhancing their sense of empowerment, self-esteem and status within the community.

Most of SSGF’s beneficiaries had lost their means of livelihood when the surging waters washed their materials and equipment away. However, some were indirectly impacted. For example, a couple that used to run a grocery store realised that their unfortunate customers were unable to repay the credit they had availed. They joined a samithi (CBO) to avail of SSGF funding that enabled them to replenish inventory.

Many women opted for livelihoods like tailoring and embroidery of women’s and children’s garments. These have been restored with sewing machines that were acquired with SSGF funding. In keeping with the traditional role of rural women, others cooked food items - ranging from lunch packets to savouries - with equipment procured through the programme. Some even ventured to set up small stores, from which household essentials like groceries, milk and bread are sold. Home gardens were a popular occupation in some districts.

Men had a variety of means of earning a livelihood that revolve around fishing and agriculture. The Department of Agriculture played its part by teaching agriculturalists how to desalinate their land, which they did with small grants from the SSGF. Many farmers thought it prudent to switch to alternate crops that are economically more viable.

Carpentry and pottery also feature as popular professions in certain affected districts. Some opted for activities like de-husking of coconuts and breeding of ornamental fish.

In the ultimate analysis, the timely support provided by SSGF has resulted in a revival of the industrious nature of these people. For the beneficiaries, it’s back to business as usual. The adverse macro-economic impact had been contained and – to an extent - reversed. During 2006, Sri Lanka’s economy performed better than in previous years, with GDP growing at 7.4%. Significantly, unemployment during the first quarter of 2007 was – at 6.2% - at its lowest level ever.