Abstract:
Poverty is still evident in Sri Lanka with regional disparities. Monaragala is one of the poorest districts for over many years and Siyambalanduwa is the poorest Divisional Secretariat in the district. Even though the situation of poverty is much serious in Siyambalanduwa Divisional Secretariat, very limited research is available on poverty incidents related to the selected area. This study examines significant factors affecting poverty in the selected Divisional Secretariat in Monaragala District of Sri Lanka. The research used quantitative research methods. Data were collected using a structured questionnaire from a sample of 329 families based on a convenient sampling method and analyzed through descriptive and inferential statistics. Based on the quantitative analysis, this research identified that poverty is caused by lack of government intervention, threat from natural factors and through the debt trap. Based on the findings, policy measures are suggested to reduce the level of poverty in Siyambalanduwa Divisional Secretariat in the Monaragala District of Sri Lanka. Accordingly, poverty could be alleviated by protecting people from the debt trap and proper intervention of the government and mitigating natural threats. Examining the mediating effect of the debt tarp on poverty is the novelty of this study and the relationship has been confirmed with empirical data. The findings of the study could be applicable to other similar contexts.
