ABSTRACT

Poverty is a serious issue which has been negatively affecting the whole world for ages. Similarly, poverty is a major issue in Sri Lanka that has not been properly addressed. The main focus of this study is to examine the issues of extreme poverty and provide sustainable solutions. An exploratory study has been conducted based on qualitative research methods with a convenient sample of 40 families, with in-depth interviews with people from two of poorest villages in the country, Wattegama and Newgala in Siyambalanduwa Divisional Secretariat (DS), in Monaragala District. Data were analyzed through the grounded theory. The study finds many difficulties faced by the people, and having developed a comprehensive definition to explain the poverty, it further presents a theoretical framework to explain significant factors affecting poverty. These factors are livelihood strategy, government intervention, natural factors, demographic factors, debt trap and bio-psychosocial status. The study also evaluates the impact of the “Samurdhi Program”, the national poverty alleviation policy in Sri Lanka, observes how effective it has been in reducing poverty in the selected area and identifies reasons for its ineffectiveness. Finally, to overcome the main issues and reduce poverty, the study proposes policy guidelines at a micro level as a basement for further studies and at macro level under the scenario.