UNDP Urges Financial Literacy to Alleviate Debt Vulnerabilities In Sri Lanka

COLOMBO (News 1st); Data from the recently launched Multidimensional Vulnerability Report (in collaboration with Oxford University) reveals that over half of Sri Lankans are multidimensionally vulnerable.

Azusa Kubota, the Resident Representative of the United Nations Development Programme (UNDP), addressing a gathering at the launch of the Financial Literacy Roadmap by the Central Bank of Sri Lanka said that approximately 70% of Sri Lankans have had to reduce at least one meal per day due to economic strain.

The report also revealed that 33.4% of the population experiences vulnerability related to household debt, often incurring debt for essential needs like food, medical care, and education, she added.

Kubota stressed that the economic crisis likely exacerbates these debt situations, with many individuals, especially women-headed households, lacking basic financial literacy.

"Women often sign agreements in languages they do not understand, unaware of their rights and responsibilities, leading to poor financial decisions," she explained.

She advocated for financial literacy programs, debt management strategies, and livelihood diversification to mitigate these acute vulnerabilities.

"Financial literacy is crucial in alleviating the challenges faced by many communities in Sri Lanka," Kubota asserted.

The Financial Literacy Roadmap of Sri Lanka, developed for the First Time In Sri Lanka provides evidence based guidance to all financial literacy stakeholders to move towards a single policy goal, which is improving the financial behavious of all Sri Lankans and advancing their financial capabilities.