As the economic crisis in Sri Lanka continues to evolve, its impact is growing and families are struggling to put food on the table. So much so, that the situation may turn into a food security crisis. As the situation continues to unfold, the private sector is stepping up, supporting small businesses and communities amid the social and economic turmoil. This mobilization highlights the essential role played by businesses in emergencies, and the importance of investing in them for disaster preparedness, response and recovery.
The economic crisis turning into a food security crisis
For several months, Sri Lanka has been facing a severe economic crisis, compounded by the effects of a worsening debt burden, the collapse of the tourism sector and supply chain disruptions linked to the COVID-19 pandemic as well as the impact of the war in Ukraine. The situation, leading to fuel, food and medicine shortages, is causing social and political tensions.
Sri Lankans are now paying the heavy price. Because of steep increases in the price of food, people cannot put sufficient nutritious food on the table. Over six million people are already food insecure, according to the World Food Programme. Health and education services are severely affected too: the Government has shut down schools to reduce transport costs due to the fuel shortage, and hospitals are out of fuel for generators to perform surgeries, while also running out of stock of essential medicines.
According to the Humanitarian Needs and Priorities Plan (HNP), launched in early June, about 5.7 million people need humanitarian assistance in 25 districts across the country. The humanitarian community is requiring US $47.2 million to provide immediate food relief, protect livelihoods, supply essential medicines and address protection needs for the most vulnerable.
Local businesses are stepping up
While the humanitarian community is mobilizing international support, the local private sector is mobilizing its capacities to help people in need.
The OCHA/UNDP Connecting Business initiative (CBi) Member Network in the country, the Asia Pacific Alliance for Disaster Management (A-PAD SL), is engaging its partners to gather relief assistance.
In partnership with HSBC, A-PAD SL started implementing a three-month project with vulnerable school children, donating school stationery as well as ration packs for their families. In areas where dropout rates had soared because of the economic crisis, such ration packs, made up of essential dry foods, help families cook meals at home so they can send healthy children back to school.
In addition, A-PAD Bangladesh has extended support to their counterpart in Sri Lanka by providing pediatric medicines that were handed over to the Ministry of Health, while HSBC staff members outside of Sri Lanka are channeling personal donations for health and education services through A-PAD SL.
The network, despite the ongoing turmoil, is pursuing disaster preparedness activities to help small businesses face the upcoming monsoon season and its flooding risks. As part of CBi, A-PAD SL is leveraging its access to other CBi Member Networks and to the CBi Secretariat on an on-going basis to strengthen its capacity to build disaster resilience and engage the private sector, not only in crisis response, but also in essential preparedness and recovery activities.
Large companies in the country, such as Hemas, Dilmah, Brandix or Daraz have stepped up as well and committed to provide significant support to the response efforts in the health and agricultural sectors, via a Private Sector Giving Facility initiated by the United Nations Development Programme (UNDP).
UNDP is also setting up a crowdfunding mechanism, which will allow individuals to contribute towards alleviating the impact of the crisis, not only by addressing shortages in the healthcare sector, but also by contributing to strengthening food security and other response measures in Sri Lanka.
Needs remain immense; here’s how to help
To guide business initiatives towards the crisis response in Sri Lanka, the UN Office for the Coordination of Humanitarian Affairs (OCHA), together with CBi, has developed a Business Guide, compiling advice and information for the private sector. CBi is also maintaining up-to-date information on its emergency page.
What’s happening in Sri Lanka now might happen in other countries soon, as the global economy struggles with higher interest rates combined with soaring fuel and food prices. The crises we face are becoming more complex, more frequent, and more severe. And with humanitarian needs reaching record-high levels, traditional humanitarian partners can’t handle the response alone anymore. The private sector, through its human resources, local know-how, logistical and transportation capacities, has a key role to play. As an integral part of the communities they aim to serve, local businesses are naturally among the first responders in times of crisis. It’s time to acknowledge their role and involve them better in disaster response mechanisms.