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Sri Lanka Human Development Report 2012.pdf

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The poverty gap index, which measures the depth of<br />

poverty, has declined from 2006-2007 to 2009-2010,<br />

with significant reductions in Uva, Sabaragamuwa, the<br />

central provinces and the estate sector. This progress<br />

does not extend to the Eastern Province, indicating a<br />

marginal reduction in inequality. Compared to 2007,<br />

The increase in per capita GDP has improved the living<br />

conditions of poorer groups, translating into a lower<br />

poverty incidence. The most significant improvements are<br />

in regions that were the poorest in 2006-2007, including<br />

Uva, Sabaragamuwa and Central provinces, and in the<br />

estate sector. Overall, however, the poorest 20 percent<br />

Figure 2.9: GDP per Capita and Poverty Head Count Ratio by Province,<br />

2006-2007 to 2009-2010<br />

Sources: Department of Census and Statistics of <strong>Sri</strong> <strong>Lanka</strong> 2011c and 2011d, and Central Bank of<br />

<strong>Sri</strong> <strong>Lanka</strong> 2010.<br />

GDP per capita income increased in 2009 in all provinces<br />

(Figure 2.9). It was highest in the Western Province at<br />

Rs. 375,000, nearly twice the value of Rs. 213,000 for the<br />

North Western Province, the second highest.<br />

of the population in <strong>Sri</strong> <strong>Lanka</strong> received only 4.5 percent<br />

of total household income, while the richest 20 percent<br />

received 54.1 percent. Income inequality needs to be<br />

tackled for sustained human progress. 51<br />

28<br />

sri lanka <strong>Human</strong> <strong>Development</strong> report 2012

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