ABSTRACT

The Democratic Socialist Republic of Sri Lanka is an island country located in the northern Indian Ocean. Formerly known as Ceylon, this one-time colony of the British Empire became a dominion of the British Commonwealth in 1948 before gaining full independence in 1972. There are various kinds of inequalities and disparities related to income, depending on the region. Many papers have examined poverty, inequality, and disparity in Sri Lanka from various perspectives. In this paper, the authors describe the differences in household income and expenditure of Sri Lanka. The increase in the number of household members is accompanied by an increase in income in the Urban and Rural sectors, but an increase of the household members affects the family budget expenditure without household incomes increasing even if the number of household members increases in the Estate sector. In this paper, people show typical cases of disparity. There are disparities of income and expenditure between the Urban, Rural, and Estate areas.