ABSTRACT
Formal sector employment is the exception rather than the rule in many developing countries in Africa, Asia and Latin America; only a few people work either in formally organised private firms or in the state sector. Recent liberal economic reforms in many developing countries have further expanded the informal sector. The increasing concentration of low-income earners in urban areas has led to an expansion of informal sector activities such as pavement hawking, domestic work and personal services. The concentration of wealth in large cities has facilitated an expansion of the construction industry, creating job opportunities for skilled and unskilled workers. A household survey comprising just over 500 families drawn from 10 disadvantaged settlements in Colombo was conducted using a short semi-structured interview schedule. The housing situation in the sample settlements has improved in the recent past due to several major state interventions.
