Survey finds over 60% households suffered decrease in their total income

A survey conducted by the Department of Census and Statistics (DCS) has found that 60.5% of households have reported a decrease in their total income, while 5.6% experienced an increase, and 33.9% saw no change despite the crisis.

The study titled “Household Survey on Impact of Economic Crisis – 2023” underscores the challenges faced by households, prompting them to adopt strategic adjustments and coping mechanisms in response to the prevailing economic difficulties.

The survey findings indicate a substantial impact on household income, with 60.5% of households reporting a decrease, while only 5.6% experienced an increase. Notably, 33.9% witnessed no change despite the crisis, showcasing the varied impact across different households.

In response to declining income, households employed diverse coping strategies, with 6.6% resorting to secondary jobs or additional income sources. However, a significant majority, comprising 73.6%, did not adopt specific coping measures.

Moreover, the economic crisis influenced changes in household expenditure, with 91.1% of households indicating an increase, while 3.6% reported a decrease. For those experiencing increased expenses, soaring food prices emerged as a primary concern, cited by 99.1% of respondents.

The survey report highlighted that 97.2% of households utilized at least one coping strategy to manage their expenditure, indicating a broad spectrum of approaches taken to address financial challenges.

Sri Lanka has faced one of its most formidable economic crises since gaining independence in 1948, initially triggered by the Easter Sunday attacks in 2019 and compounded by the COVID-19 pandemic. Despite government efforts to stabilize the situation, the survey reveals the tangible and extensive impact on households.

This survey initiative by the Department of Census and Statistics aims to comprehensively analyze household coping mechanisms amid the ongoing economic challenges, offering critical insights into the strategies employed by families to navigate these tumultuous financial times.