Sri Lanka Human Development Report 2012.pdf

Cultivation of paddy is another major economic activity
in the Northern and Eastern provinces. One survey found
that 54 percent of farmers cultivating crops were growing
paddy, both rain fed and irrigated. 281 On the whole, crop
diversification is low, with the highest level in Trincomalee.
Farmers there grow vegetables, cereals, chillies and fruits,
in addition to paddy. There is a moderate degree of crop
diversification in Vavuniya District, while diversification
is relatively low in Ampara and Batticaloa districts. 282
Livelihoods outside agriculture and fisheries are limited,
dominated overwhelmingly by microenterprises. The
Government is another source of employment, while
the industrial sector is diminutive, both as a source of
employment and as a contributor to GDP, except in
Trincomalee. In some districts, including Batticaloa,
traditional cottage industries, such as pottery and weaving,
are significant sources of income for women. Economic
activities and households also depend heavily for income
upon remittances from members working abroad. 283
Several factors have hindered the growth of livelihood
opportunities, including the lack of skills, technology,
equipment, infrastructure (particularly irrigation),
marketing know-how and market linkages. There are
significant gaps in natural resource management. Many
households do not have deeds for their land. In the Ampara
District, a survey of the villages of Kanchikudichcharu,
Thangabelautham and the 18th Colony of Damana found
that about half the families did not have legally valid
documents. 284 Though labour availability is not a major
problem, skilled labour is in short supply, particularly in
the Ampara District. 285
Safe access to land is restricted in some places by mines
planted during the conflict. By early 2011, 536 square
kilometers of contaminated land has been identified in areas
surveyed. 286 Surveys remain to be conducted in 6 Grama
Niladari Divisions. In July 2010, the Cabinet approved
the establishment of the National Mine Action Centre to
coordinate and manage all mine-related activities. Given
limited existing capacities for demining operations, the
Government has allocated the highest priority to land
needed for resettlements and livelihood activities near
resettlement areas. According to the latest available data,
between 1st January, 2009 and 31st December 2011, 555
square kilometers of land were released for resettlement
through mine/Explosive Remnants of War (ERW)
clearance, in addition to the release of large stretches of
land certified as safe through non-technical surveys. 287
Another serious issue affecting agriculture is inadequate
access to inputs and services. Obtaining seed paddy, for
example, is a major problem in Batticaloa and Vavuniya
districts. These constraints, coupled with water scarcity
during the dry season, have been mainly responsible for
low productivity. Water is not a huge problem for paddy
cultivation in Batticaloa and Trincomalee, where it is
done mostly under rain-fed conditions, and Ampara,
where irrigated cultivation is prevalent. Agro-wells have
emerged as important sources of water, with high usage in
Trincomalee and Vavuniya districts. 288
Extension services are poor except in Trincomalee, and the
use of technology in agriculture is very low. One survey of
farmers in Trincomalee District found that they are not
aware of new technologies and remain heavily dependent
on traditional farming methods. 289 Programmes need to
be in place to raise awareness about available technology
and other inputs for increased production.
Most households lack access to credit, for reasons such as
the lack of facilities, lack of trust, restricted lending only to
the members of microfinance institutions, limited collateral
and the inability to provide guarantors for loans. 290
Banks have been reluctant to supply credit for rain-fed
cultivation due to the risks associated with it. Credit for
livestock-related livelihoods has been relatively scarce. 291
Many of the problems with livelihoods in agriculture
and fisheries have an additional impact by limiting
movement to other livelihood options. The unavailability
of infrastructure to add value to agricultural production
(through, for example, rice processing), the lack of market
linkages and integration, the underutilization of skills, and
obstacles to accessing credit, all constrain movement out
of agriculture into alternative livelihoods.
Large-scale investments by the Government and donors
have not brought immediate benefits to local economies, as
had been anticipated. This has been due in part to practices
such as the use of contractors and labourers from outside
localities, thus restricting opportunities for local people
to gain new incomes and skills. Other options could be
explored. Tourism, for example, has great potential, with
the right infrastructure in place. 292
Chapter 5 Bridging Human Development Gaps: Employment and Livelihoods 99