Recent studies on poverty and inequality in Sri Lanka have shown an increasing trend in inequality, with the result that widening inequality has reduced the positive impact of growth on poverty reduction. inequality that is due to the differences in household endowments and inequality that is due to the differences in location specific returns to these endowments, using both Machado-Mata and Blinder-Oaxaca decomposition techniques. Spatial inequality is decomposed into two segments i.e. quantile regression decomposition technique. The Household Income and Expenditure Survey (HIES) of 1995/ are used in analyzing the sources of consumption inequality by applying a.
This study analyzes the spatial inequality (between the urban sector and the rural sector and between the western province and the rest of the country) in Sri Lanka, using household consumption expenditure as a proxy measure of household welfare.
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