Urbanization, Economic Growth, and Equity in Sri Lanka: Trends, Patterns, and Policy Implications

Abstract

The primary objective of this paper is to examine the trends and patterns of urbanization, urban economic growth, and urban equity—particularly urban poverty and inequality—in Sri Lanka over recent years. In addition to analyzing these trends, the paper reviews the various urban development policies and programs implemented during different Plan Periods in Sri Lanka. Our analysis reveals that a higher rate of urbanization in Sri Lanka is correlated with increased economic growth, a reduction in urban poverty levels, and a higher degree of inequality within urban areas. These findings underscore the complex dynamics at play within urban environments and highlight the need for targeted policies and interventions to address urban poverty and inequality. Furthermore, the study suggests that the Sri Lankan government should prioritize efforts to accelerate the urbanization rate, recognizing its potential to contribute a larger share to the national GDP. By focusing on urban development initiatives aimed at reducing urban poverty and inequality, the government can harness the economic potential of urban areas while ensuring that the benefits of growth are shared more equitably among urban residents. Overall, this paper provides valuable insights into the relationship between urbanization, economic growth, and equity in Sri Lanka, and offers policy recommendations to guide future urban development efforts in the country. Through targeted interventions and strategic policy measures, Sri Lanka can harness the opportunities presented by urbanization to foster inclusive and sustainable urban development, ultimately improving the well-being of its urban population.