Official Poverty Threshold Edges Up at Start of 2026

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Udawalawa roadside boutique

By: Isuru Parakrama

February 26, Colombo (LNW): Sri Lanka’s national poverty benchmark recorded a further rise in January 2026, underscoring the mounting cost of basic living expenses at the start of the year, according to newly released data from the Department of Census and Statistics.

The latest figures show that the country’s overall poverty line increased to Rs. 16,730 in January, up from Rs. 16,658 in December 2025.

With the month-on-month rise appearing modest, analysts are of the view that even incremental increases can place additional strain on low-income households already grappling with elevated prices for food, transport and utilities.

The data reveal notable regional disparities. Colombo District once again posted the highest poverty threshold, climbing to Rs. 18,044 in January from Rs. 17,966 a month earlier.

Gampaha followed closely at Rs. 17,951, reflecting sustained living costs in the densely populated Western Province.

Nuwara Eliya ranked third, with the poverty line standing at Rs. 17,593, partly attributed to higher food and transport expenses in estate and hill country areas.

At the lower end of the scale were districts such as Monaragala, Kilinochchi and Hambantota, where the poverty lines were recorded at Rs. 15,997, Rs. 16,163 and Rs. 16,255 respectively.

Economists caution, however, that lower nominal thresholds do not necessarily translate into easier living conditions, as income levels and employment opportunities also vary significantly across regions.

The official poverty line is calculated to reflect the minimum monthly income required for an individual to meet essential needs, including adequate nutrition, housing, clothing, healthcare and other basic services.

With inflationary pressures still evident in several sectors, policymakers are expected to monitor these trends closely as part of broader efforts to stabilise household welfare and protect vulnerable communities.

READ FULL REPORT HERE: https://www.statistics.gov.lk/povertyLine/2021_Rebase