Once regarded as a model for universal welfare in South Asia, Sri Lanka is now confronting rising food insecurity, strained public services and widening social vulnerability, prompting renewed calls from economists and rights advocates for a development model centered on universal entitlements rather than austerity-led growth.

For decades, Sri Lanka was recognized for its relatively strong public investments in education, healthcare and food subsidies, which helped establish high social indicators compared with many countries at similar income levels. Universal schooling, accessible healthcare and broad-based welfare programs were often cited as pillars of the country’s post-independence development strategy.

But recent years have seen that framework come under increasing pressure.

According to the Food and Agriculture Organization’s 2025 Hunger Map and the World Food Programme’s 2024 Household Food Security Overview, around one million people in Sri Lanka are now chronically undernourished, while nearly nine million more struggle to access sufficient nutritious food. Nearly four in ten households report inadequate diets, reflecting a sharp deterioration in food security in a country that was once largely self-sufficient in food production and a major seafood exporter.

The figures come against the backdrop of Sri Lanka’s prolonged economic crisis, which intensified after the country’s sovereign debt default in 2022 and triggered inflation, currency depreciation, shortages of essential goods and sweeping fiscal restructuring.

Dr. Ahilan Kadirgamar, a leading Sri Lankan economist and senior lecturer at the University of Jaffna, said the country’s current challenges reflect not only immediate economic distress but a deeper structural shift away from universal welfare protections.

He argues that austerity measures, combined with financialization and infrastructure-heavy development priorities, redirected state resources away from people-centered public services and toward projects that did not adequately protect livelihoods.

“Until recently, Sri Lanka was a country that could sustain itself and export seafood worldwide,” Kadirgamar said. “But now we are facing a situation where millions are unable to access enough nutritious food, and public institutions are under severe strain.

”According to Kadirgamar, hospitals continue to face shortages of essential medicines, universities are functioning under reduced real funding, and welfare programs have become increasingly narrow and targeted rather than universal, leaving large sections of the population exposed during periods of crisis.

He said the transition from universal subsidies toward selective welfare mechanisms has weakened the resilience of ordinary households, particularly during inflationary shocks and employment disruptions.

Kadirgamar has called for what he describes as a “Human Rights Economy,” a framework that places universal access, democratic participation and social protection at the center of economic decision-making.

Rather than treating economic planning as a technical domain reserved for specialists, he argues that citizens must have a direct role in shaping the priorities that affect their livelihoods.

“Economic policies cannot be the realm of experts,” he said. “It must be democratized. It is people’s demands that should determine economic policies.”

The concept of a Human Rights Economy has gained wider attention through advocacy by the Office of the United Nations High Commissioner for Human Rights, which frames economic governance through the lens of rights protection, equality and public accountability. The approach emphasizes that economic growth alone is insufficient if it does not translate into dignity, food security, healthcare access and social participation.

Kadirgamar said such a shift requires not only policy reform but also organized civic action.“Change will not come without action,” he said. “There needs to be coalitions organizing at every level.”He pointed to cooperatives as one practical mechanism for rebuilding resilience.

Small, democratic and community-based institutions, he said, can help reconnect producers and consumers while reducing dependence on fragile centralized supply chains and volatile global markets.In Sri Lanka, cooperative structures historically played an important role in rural development and agricultural distribution, though many weakened over time amid market liberalization and institutional decline.

Reviving such models, Kadirgamar said, could support local production while strengthening accountability and participation.“To rebuild the economy, citizens and policymakers must rethink how economic policies are made and form coalitions demanding equality, participation and universal rights,” he said.

He views the Human Rights Economy not simply as a new policy language but as a fundamental departure from the trajectory of recent decades.“That’s the context in which I understand the idea of a human rights economy,” he said. “A new framework, but one that has to completely shift from the path we have been on.”

Sri Lanka’s experience is increasingly cited in international discussions about debt, austerity and social rights, particularly as many developing economies face pressure to implement fiscal consolidation measures while managing inflation, debt servicing and weakened welfare systems.

Critics of austerity argue that reducing spending on health, education and food protection during economic recovery often deepens long-term inequality and undermines social stability, even when such measures are framed as necessary for macroeconomic reform.

Supporters of fiscal restructuring, however, argue that restoring financial credibility is essential for long-term recovery and investor confidence, especially after sovereign default.The tension between these approaches has become central to Sri Lanka’s policy debate.

The issue is also being examined through the United Nations-backed podcast series “Economies That Work for All,” produced by UN Human Rights and the UN System Staff College’s Knowledge Centre for Sustainable Development.

The series explores how human rights principles can be integrated into economic systems to support progress toward the 2030 Agenda for Sustainable Development.UN Human Rights Chief Volker Türk has also spoken publicly about the need for rights-based economic models, particularly in countries facing sovereign debt burdens and widening inequality.

For Sri Lanka, the debate is no longer theoretical. With millions facing nutritional insecurity and public institutions under visible pressure, the question of whether recovery should be measured by fiscal balance sheets or by human well-being is becoming increasingly urgent.

What emerges from that choice may shape not only the country’s economic future, but the social contract that defines it.

South Africa is advancing a transition away from its coal-dependent economy through a policy framework that seeks to align climate goals with social equity, according to discussions featured in a United Nations-backed podcast examining human rights-based economic models.

The initiative, highlighted in an episode of the “Economies That Work for All” series produced by the Office of the UN High Commissioner for Human Rights and the UN System Staff College, outlines how Africa’s most industrialized economy is attempting to balance decarbonization with the protection of vulnerable communities.

Dorah Modise, Executive Director of South Africa’s Presidential Climate Commission, said the transition to a low-carbon economy is not solely an environmental objective but a broader socio-economic challenge. The country remains one of the most unequal in the world, with coal-dependent regions particularly exposed to potential job losses and economic disruption as energy systems shift.

Modise emphasized that the transition must proceed but warned that its design will determine whether it mitigates or deepens existing inequalities. Communities reliant on coal production face heightened risks, particularly in a context where millions of South Africans continue to experience energy poverty and where financing constraints slow the pace of reform.

The government’s approach is guided by the Just Transition Framework developed by the Presidential Climate Commission, which seeks to integrate economic restructuring with social protection. The framework promotes the gradual decentralization of the energy system, expansion of renewable energy capacity, and the development of new employment pathways in emerging green industries.

Efforts are also underway to prepare workers for shifts in the labor market through retraining and skills development initiatives. Authorities are expanding social protection measures to cushion the impact of industrial restructuring, while also seeking to ensure that the benefits of the energy transition are more evenly distributed.

A key component of the strategy involves the management of natural resources critical to the global energy transition. South Africa holds reserves of minerals required for renewable technologies, and policymakers are attempting to position the country as a supplier while adhering to environmental and labor standards.

“As we explore and extract … we need to protect workers and communities, and we need to avoid impacting the environment,” Modise said, underscoring the importance of responsible mining practices within the broader transition strategy.

The framework is rooted in South Africa’s constitutional provisions, which recognize sustainable development as a fundamental right. This legal foundation shapes the government’s emphasis on integrating human rights considerations into economic planning and environmental policy.Implementation of the transition strategy involves coordination across multiple stakeholders, including government agencies, private sector actors, civil society organizations, and international donors.

This multi-stakeholder approach is intended to address competing interests and manage trade-offs inherent in large-scale economic transformation.The policy framework also incorporates metrics that extend beyond traditional energy indicators. Progress is being assessed not only in terms of renewable energy capacity but also through social outcomes such as reductions in inequality, increased employment opportunities for young people, and greater participation of women in decision-making processes.

Modise described the ultimate measure of success as a narrowing of disparities between different socio-economic groups. This reflects a broader shift in policy thinking that links climate action with inclusive development objectives.South Africa’s transition efforts take place within a wider global debate on how to reconcile decarbonization with economic justice, particularly in developing economies where structural inequalities and fiscal constraints complicate policy implementation.

The country’s approach is being closely observed as a potential model for integrating human rights considerations into climate policy.The podcast series situates South Africa’s experience within the broader concept of a “human rights economy,” which seeks to align economic systems with social and environmental priorities.

The framework is linked to the United Nations’ 2030 Agenda for Sustainable Development, which emphasizes inclusive growth and equitable resource distribution.As countries accelerate efforts to meet climate targets, the South African case highlights the challenges of ensuring that transitions away from fossil fuels do not disproportionately affect already marginalized populations.

The emphasis on participatory governance and rights-based policy design reflects an attempt to address these concerns while maintaining momentum toward decarbonization.

Child labour continues to persist across multiple sectors despite existing legal frameworks prohibiting its practice, with field reports indicating that economic pressure, weak enforcement and informal employment structures are sustaining its prevalence.

According to practitioners working with vulnerable communities, children are still engaged in labour across agriculture, small-scale manufacturing, domestic work and street-based activities.

They said the problem is particularly acute in informal sectors, where regulation is limited and oversight mechanisms are difficult to enforce.Child rights advocates reported that many families rely on supplementary income generated by children to cope with rising living costs.

They indicated that this economic dependence often leads to children entering the workforce at an early age, sometimes at the expense of their education and well-being. In such cases, work is frequently normalised within households as a necessary survival strategy.

Labour experts noted that while national legislation prohibits hazardous and exploitative child labour, implementation remains inconsistent. They said enforcement agencies are often understaffed and face challenges in identifying violations, particularly in remote or unregulated environments.

In addition, they indicated that legal provisions are sometimes undermined by gaps in monitoring and reporting systems.Field organisations working in urban and rural areas reported that children are commonly found working long hours in conditions that expose them to physical and psychological risks.

They said these include handling heavy loads, exposure to harmful substances and working in unsafe environments without protective measures. In many instances, children are also said to face verbal abuse or exploitation, with limited access to grievance mechanisms.

Education specialists highlighted a strong correlation between child labour and school dropout rates. They reported that children engaged in work often struggle to attend school regularly or complete assignments, leading to early disengagement from formal education.

This, they said, reinforces cycles of poverty by limiting future employment opportunities.Some practitioners observed that migration and displacement are contributing factors.

They said families relocating in search of work may lack access to social services, increasing the likelihood of children entering labour markets. In such contexts, children are often employed in low-paid, informal roles where their age makes them more vulnerable to exploitation.

Stakeholders also pointed to the role of supply chains in sustaining demand for cheap labour. They said small businesses and subcontractors may employ children to reduce costs, particularly in industries where profit margins are narrow.

Without adequate traceability, they added, such practices can remain hidden within broader production networks.Government officials have maintained that policy measures are in place to address the issue, including rehabilitation programmes and awareness campaigns.

However, observers said the scale of implementation varies significantly across regions, with some areas lacking the resources needed to deliver effective interventions.Non-governmental organisations reported that rescue and rehabilitation efforts face logistical and social challenges.

They said that even when children are withdrawn from labour, reintegration into education systems is not always straightforward. Families may continue to face financial hardship, increasing the risk of children returning to work.

Experts emphasised the importance of addressing root causes, including poverty, limited access to quality education and social protection gaps. They said that without comprehensive strategies targeting these underlying factors, enforcement alone is unlikely to eliminate child labour.

They further indicated that greater coordination between government agencies, civil society and private sector actors is required to strengthen monitoring and accountability. Improved data collection and reporting mechanisms were also identified as critical to understanding the scale and nature of the problem.

Practitioners stressed that child labour is evolving in response to economic and social changes. They said that as enforcement increases in formal sectors, the practice may shift into less regulated spaces, making it harder to detect.

This trend, they warned, requires adaptive policy responses and sustained attention from authorities.

Field reports suggest that while legal frameworks provide a foundation for addressing child labour, gaps in enforcement, economic pressures and structural inequalities continue to limit their effectiveness.