RAPID LIVELIHOODS ASSESSMENT IN COASTAL AMPARA & DISTRICTS,

18th January, 2005

EXECUTIVE SUMMARY

Save the Children carried out a rapid livelihoods assessment in coastal areas of Ampara and Batticaloa districts between January 5th and 11th to acquire a basic understanding of the different economic activities undertaken prior to the December 26th tsunami within affected communities and nearby towns and villages. The information will be used primarily to inform SC’s own interventions, but may also be of interest to other agencies working in this sector.

Information was gathered using qualitative semi-structured interviews with individuals and small groups of purposively-sampled livelihood groups. It is acknowledged that information is incomplete, but it is hoped that the qualitative and contextual information here will assist in interpreting more quantitative data gathered by other agencies.

For the population affected by damage to their homes, repair and reconstruction of housing was consistently listed as the top priority in the recovery process, and in many cases is a necessary first step before they can focus their energies of income-earning activities.

The assessment confirmed that the largest affected group in these areas were fishermen, but highlights that there are at least 4 categories of fishermen, with different arrangements for payment and sharing of fishing catches, and with very different pre-tsunami incomes. For this group, repair or replacement of fishing boats and equipment is a clear priority.

Unskilled casual labourers form a substantial part of the population, and are at the lower end of the socio-economic spectrum. They were employed in a variety of activities, some of which are seasonal, such as house/ garden cleaning, assisting masons and carpenters, assisting fishermen, and harvesting nearby rice fields. Restoring the income of these groups requires supporting those who previously employed them, although in the short-term employment on a cash-for-work basis in local cleaning and reconstruction activities would be very worthwhile.

A variety of groups key to the functioning of the local economy and to the reconstruction process also require support, such as carpenters, masons and shopkeepers, in the form of tools or financial capital to re-start their businesses.

The majority of female-headed households and households heavily dependent on income from women were among the poorest in these communities. These women were mainly engaged in activities such as petty trading, vegetable sales, snack sales, and crafts such as sewing and weaving, and most of these had very poor returns. This group also need their productive assets replaced, and in some cases working capital to restart businesses. Newly- widowed households will be of particular concern, and additional support for example in skills- training will be required to enable these households to cope with their new situation.

In almost all areas, markets were found to be functioning normally, and prices were unchanged from pre-tsunami levels. With goods available in the market and a rice harvest due within the next month, cash-based interventions will be more appropriate than food aid to meet ongoing relief needs.

Save the Children is also concerned that the conditions exist for serious protection risks to arise, particularly for children from the poorest families. These are in relation to the targeting of emergency relief, sexual exploitation and under-age recruitment into armed groups. Although not exclusively related to livelihoods, these risks provide further urgency to livelihood recovery activities. 1. Introduction

Ampara & Batticaloa districts are in the Tamil-dominated Eastern Province of Sri Lanka, and were among the districts worst affected by the tsunami. The estimated total population of the DS Divisions on the coast of Ampara totals 297,105, while in for Batticaloa it is roughly 464,000. Of these, 103,285 and 56,473 are estimated to have been displaced as a result of the tsunami, and greater numbers have been otherwise affected. In Ampara, 10,436 people are estimated to have died, while in Batticaloa 2,820 are estimated to have died.

The rapid livelihoods assessment below was carried out with the aim of getting an initial understanding of livelihoods patterns that were in existence in these areas prior to the tsunami on December 26th, and how they were affected as a result of the tsunami, and thereby to provide recommendations primarily for Save the Children’s interventions, to inform SC’s livelihoods-related advocacy work in the country, and to help inform other agencies planning interventions in this sector.

This report presents a description of the activities of people in a variety of occupations prior to the tsunami, then illustrates how the tsunami affected those activities, and finally provides broad guidance on the types of interventions that would be appropriate to enable people to recover.

2. Sources of information

The assessment involved a series of qualitative semi-structured interviews in villages and towns along the coastal areas of Ampara and Batticaloa with purposively sampled groups and individuals from different livelihood groups and from local authorities, complemented by a variety of secondary data in relation to livelihoods. The fieldwork was carried out between January 5th and 11th, 2005. S Ministry of Fisheries, Karaitivu and Batticaloa S Fisherfolk in Sainthamarathu, Thirukkovil, Puttovil, Valaichenai, Oddamavady, Arayampathy S Casual labourers in Sainthamarathu, Thirukkovil, Puttovil, Arayampathy S Petty traders, shopkeepers, wholesalers – Thirukkovil, Akkaraipattu, , Batticaloa, Arayampathy, Chenkalady, Oddamavady S Muslim weaver families, Kalmunai (Marumuthimuna) S Tailors/ sewing women in Chenkalady, Batticaloa S Women’s groups in Sainthamarathu, Thirukkovil, Batticaloa S In-school and out-of-school children in Oddamavady and Batticaloa S Local authorities S GA’s Office and coordination meetings S National-level secondary data

Previous brief fieldwork in Galle and Matara districts from January 2-3 was used to reproduce some indicative information on the tourist sector and 3-wheeler drivers, who were not assessed in the Ampara and Batticaloa assessment.

3. Who was Affected by the Tsunami?

S Boat owners S Fishermen/ boat crews S Casual labourers S Farmers S Shopkeepers/ Businessmen S Artisans: masons, carpenters, sewers, weavers S Petty Traders

During the rapid assessment, estimates were made by interviewees of various occupations of their average monthly incomes. These are shown in the graph below to illustrate the relative returns to various types of livelihood strategies, including different types of fishing. It is important to note that the activities predominantly carried out by women are among the most poorly paid. In many cases women’s activities are secondary sources of income to the household, but where the household is female-headed the likelihood of poverty is high.

Sample Pre-Tsunami Monthly Incomes by Occupation, Ampara & Batti

50000 IBM Boat Owner = Rs.105,000/ month 45000 Colour code: 40000 - Pink = Predominantly Female Activity 35000 - Blue = Predominantly Male Activity - Green = Mixed Activity 30000

25000 Average cost of minimum food and non-food basket for family of 5 = approx. Rs.5,000/ month 20000

15000

Average Rs per Month 10000

5000

0

r r ) ) n n lle al a a ure man lled river m ner o d ttance owner w (home) er bouring (ski i la r er isher e nack se fish (season el F rem ine lab S aver ilo e he a cano ea Fisherm se noe Ta w Se ine boat o BM Boat owner W ca 3- igrant S IBM Boat owner Petty traderach (veg.) n casual bourer Sea se O p Weaver (piecework) e ea la eep Tailor (unspecialised) B S ow al D gn m ach T ur M ei e lt B r B O Fo IBM Dee gricu A

In many households, particularly at the poorer end of the wealth spectrum, a variety of income-earning activities are carried out. For example, most of the labourers involved in beach seine fishing, and to a lesser extent those in sea canoe fishing, also do some urban or agricultural casual labour. Remittances from a family member working overseas are typically in addition to another source. The majority of foreign workers come from poorer families, but as they pay off debts and then start remitting for the benefit of the family, they can quickly move up the wealth spectrum. As mentioned above many activities predominantly done by women are in addition to a low return activity by their husband.

It was not possible to get clear estimates of the proportions of the population in each category, but it was consistently estimated that 70-90% of the population were involved in fishing. Using secondary data on the fishing fleet in addition to the limited information from the field on this topic, a rough wealth breakdown is tentatively presented as follows: Very Poor Poor Lower Middle Upper Middle Better Off 5-15% of Popn. 50-60% of Popn. 20-25% of Popn. 10-15% <5% - Single, low-income - Small fishermen - OBM fishermen - Beach seine & - Big boat owners earners (veg./ petty - Casual labourers - Canoe owners OBM boat owners - Large business traders, some - Some secondary - (Artisans?) - IBM crew owners casual labourers) income (petty trade, - (Junior formal - Senior formal - Majority of widows veg. unspecialised employees?) employees - Disabled female artisan…) - (Small - With children out shopkeepers) of school < Rs.5,000/ month Rs 5 – 7,000/ month Rs. 7 – 15,000/ Rs. 15 – 35,000/ > Rs. 35,000/ month month month

4. Livelihoods Strategies and How They Were Affected

4.1 Fishing

At least 4 types of fishing practices occur in this area. The wealth of the people involved is related first to whether they own the boat or work as the crew or the actual people who go out and do the fishing, or as a labourer who drags in the nets. The second determinant of wealth is the type of fishing done, with more capital intensive fishing generally providing higher returns to all those involved than less capital intensive types.

The fishing season in this area is different to the south due to the different monsoon. For most types of fishing, there is an off-season from November to mid-January during the monsoon when seas are too rough. During this time some bigger fishermen take their boats and migrate to the west coast areas of Negambo and Chilaw, some continue fishing on occasional days but just get lower catches (especially sea canoes), some take up low-return lagoon fishing, while many stop fishing altogether and focus on the maintenance of their boats and nets, or on seeking casual labour elsewhere.

No (enforced) regulation of where various boats could fish along the coast was reported.

In the majority of cases, particularly for motorised boats, the owner of the boat does not actually go fishing himself. Hence a variety of mechanisms have been devised for sharing the catch between the boat owner and the crew/ fishermen/ labourers. The difference in the share to the owner is at least partly related to the investment that the owner makes in the boat. Hence for a large in-board motorboat, the owner usually gets 50% of the catch, while the share is lower (e.g. 33% or 20%) in smaller boats that require less initial investment and less ongoing maintenance. Arrangements are not standardised within the different categories of fishing. The arrangement is likely, therefore, also to reflect supply and demand of labour in the area, and the negotiating power of the fishermen vis-à-vis the boat owner.

All the main ethnic groups do fishing, and it was reported that within the main Tamil and Muslim communities a mix of boat owners and crew/ fishermen/ labourers can be found. Typically, therefore, a Tamil boat owner will employ Tamil crew/ fishermen, while a Muslim boat owner will employ Muslim crew/ fishermen.

The types of fishing in this area are as follows: 4.1.1. Small Coastal Sea Canoe Fishing This group fishes close to shore in small wooden or fibreglass boats without engines (predominantly fibreglass boats now), using a variety of nylon nets. They work in groups of 2 or 3. In this area, most of those spoken to reported that the fishing team comprised the boat owner plus two others who get a smaller share of the catch. It can also be the case that the boat owner does not go out fishing at all but just pays others to do so. The agreement did not seem constant throughout the area: the owner got between 33% and 50% of the catch, while the other fishermen got the remaining 66% or 50% of the catch split between them. If the owner fishes himself, he gets the owner’s share plus his share as one of the fishermen.

The fishermen usually work 6 or 7 days per week, and although the size of the catch varies widely from day to day (as with all fishing groups), they estimated that they earn on average Rs150-250 per day from their share of the catch, or approximately Rs5,600 per month.

4.1.2. Karavala/ Beach Seine This is the method whereby fishermen identify shoals of fish near the coast, and surround them with the net, with the two ends being dragged in by a team of 30-40 people on the beach. The labourers who drag in the nets get either 66% or 50% of the catch between them, while the boat owner gets the rest. Labourers either work for a year with the same boat owner, or can be employed on a day-by-day basis. It needs to be verified, but appears that daily labourers got a smaller share, while those with more formal arrangements got a bigger share.

With the catch being divided between so many people, the income from this method was the lowest of all categories, at on average Rs100-200 per day. This would give an average monthly income of approximately Rs4,200.

4.1.3. One-Day Out-Board Motorised Deep Sea Fishermen This group use 3-person fibreglass boats with outboard engines, and trawl away from the coast on a daily basis using long nylon nets. The owner typically gets 40% of the catch (or 20% each if the boat and net owners are different), and the three fishermen each get 20%. The average daily income for this group was around Rs250-400, giving a typical approximate monthly income of Rs9,000.

4.1.4. Big Fishermen/ In-board Motors These are the fishermen working on large boats with inboard motors, all from the northern divisions of Kalmunai, Sainthamarathu and Karativu in , and mainly in Oddamavady and Eravur town in Batticaloa district. Typically, the boat owner employs a crew of 3 to 4 people on these boats. When the catch is sold, money is deducted for maintenance and fuel for the boat and then split 50%/ 50% between the owner and the crew (i.e. each crew members gets 12.5% or 16.6% of the catch). While this share is lower than in other categories, the overall value of the catch is enough to ensure that this class of fishermen earn more than any others, i.e. around Rs900-1000 per day during the relevant season. This is equivalent to a typical monthly income of over Rs26,0001.

1 This figure was based on only one interview with a group of boat owners and seems high, therefore the amount should be treated with caution. However in a variety of interviews this type of fishermen was consistently reported as earning the highest income. A fifth types of fishing is lagoon fishing, which seems to be similar to small coastal fishing in terms of arrangements, but is practiced by a mix of people particularly in the off season for sea fishing. Some fishermen own boats for both sea fishing and lagoon fishing. However this category was not examined, as key informants reported that most lagoon fishermen were not affected by the tsunami (in terms of loss of boats/ nets).

Summary: Typical Monthly Income From Fishing for Different Types of Fishermen & Boat Owners Type of Fishing Fisherman Boat Owner (estimate) Sea Canoe Rs. 5,600 Rs. 11,200 Karavala Rs. 4,200 (net-dragger) Rs. 16,750 OBM Deep Sea Rs. 9,000 Rs. 18,000 IBM Deep Sea Rs. 26,000 Rs. 105,000 Notes: This is income from fishing only and total household income is often supplemented through other activities, remittances or samurdhi. Boat owners’ incomes derived from fishermen’s incomes, based on the most frequently reported sharing arrangement for that category. Note also that if a boat owner goes fishing himself he will earn the owner’s income plus the fisherman’s income.

4.1.5 Marketing of Fish While some fish are consumed locally – and there is a reasonably large local market, particularly in the densely-populated northern divisions part of Ampara, and around Batticaloa town – most of the fish was previously iced and then transported and sold in Kandy and Colombo (about 4-5 and 9-10 hours away respectively). Ice was produced at two factories in Karativu. Local buyers/ businessmen purchase the fish for onward sale in the bigger cities. Although the ice factories in Karativu were damaged, it was said that this would not seriously affect marketing as the trucks from Colombo and Kandy could bring ice before returning with the fish. Whether there is sufficient capacity to cover the ice needs for this area plus all other affected areas remains to be seen though .

Currently, many people also reported that they would be reluctant to eat fish because there are still corpses in the ocean. However, it is likely that this will be a temporary phenomenon, as fish is normally such an important part of the local diet.

4..1.6 Effects of Tsunami on Fishing Communities: S Roughly 90% or more of boats and equipment destroyed or damaged; most destroyed S Ice-making factories in Karativu damaged (equipment mainly, not buildings; but uninsured), possible preservation problems for transport to Kandy and Colombo, but may be replaced by ice from those cities S Some fear of going to sea, but already some fishermen returning, and most said they would return if they had boats within a month S Demand for fish down because of bodies in ocean S Homes destroyed/ damaged and/ or possessions lost S Market disrupted in some areas due to damage to bridges on coastal road; where alternative routes are used, the cost of living has risen by 15-20%.

4.1.7 What Can Be Done to Support Livelihood Recovery for Fisherfolk? S Replace boats and nets for smaller fishermen: this would very quickly restore livelihoods. It is likely that market demand and fear of the sea will cease to be a major problem in a fairly short space of time (1 month plus?), as fishing and fish consumption are long-standing parts of these communities’ lives. Boat/ net replacement could be done through fishing cooperatives/ societies where possible, but it is important to bear in mind that many fishermen were not members of such cooperatives. A decision on whether to provide boats on credit or as a grant should consider the typical returns to each type of fishing. For smaller boats credit – even on concessional terms - may hamper the recovery process by placing the fishermen in substantial debt. In all cases a greater grant component would speed up recovery, and keep free up income to support other reconstruction work. Some key informants suggested a revolving fund through credit. This would be too slow a way of replacing boats, but if there was a limited credit component to the replacement of boats then fishing cooperatives could have some funds for ongoing support to fisherfolk. S Given the large demand for new boats and fishing equipment, it is likely that support to manufacturers may be needed to free up what could be a serious bottleneck in supply. S Where boats can be repaired rather than needing to be entirely replaced, support to enable the fishermen to carry out these repairs is needed. Such repairs may be constrained by damage to existing repair shops and lack of tools and raw materials for repairs, therefore support for those businesses to re-start would also be required. S The issue of preservation and transport needs to be reviewed. The Ministry of Fisheries estimates that the cost of damage to ice-making factories and their equipment in Ampara is Rs.5m (£25,000); if those repairs are not made then ice could be brought from outside the area, presumably at a higher cost. It is likely that formal institutions may provide credit for repairs, but if not, some sort of partnership with a bank/ credit institution to facilitate such repairs should be considered.

4.2 Casual Labourers

This is a very broad category of people, and has some overlap with fishing communities. Those classified as casual labourers include some coastal fishermen and labourers who drag in the nets in karavala fishing, those doing odd-jobs in towns and population centres, and those doing agricultural labour on farms near the coast. It should be noted that the same people may at different times of the year do all 3 of those types of casual labour, as certain activities are seasonal. This type of informal labouring is sometimes referred to as “kulle” labour, however this is a somewhat pejorative term. The latter two types of work are described below.

4.2.1 Casual Labour in Towns and Population Centres This includes a wide variety of odd-jobs, including cleaning around houses and businesses, cooking in hotels, and assisting masons and carpenters with unskilled tasks. Some people do this on a full-time basis, while some who do coastal fishing only due it during the off-season for fishing or on days when the seas are too rough. The daily rate is typically around Rs200-250, but in some places went up to Rs300. A meal during the working day is also sometimes provided. Working six days per week, therefore, would give an average monthly income of around Rs5,800. In the off- season for fishing, the competition for jobs means that labourers may not be able to get work every day, but the wage rate does not necessarily come down. 4.2.2 Agricultural Labour Ampara and Batticaloa districts are two of the highest rice-producing districts in Sri Lanka. People from the coastal communities that were visited only seem to do agricultural activities in those places where rice farms are close (i.e. within about 5kms); there were no reports of migratory agricultural labour. The main area where agricultural labour was common was in the southern part of Ampara (starting from Thirukkovil). Labourers get work mainly during the harvesting period (January/ February for the Maha harvest, and to a lesser extent with the smaller Yala harvest in August), and there is also some work during the planting periods (June, and October/ November). The rate of payment is similar to but slightly higher than other types of casual labour, with Rs200-300 being common. That would give an average monthly income during those seasons of around Rs6,450.

4.2.3 Effects of Tsunami on Town and Agricultural Casual Labour S Homes of labourers destroyed/ damaged and/ or possessions lost S Patchy loss of employment where employers have lost their incomes, homes or businesses. However, this is localised, and in fact increases in labouring opportunities are already being reported related to the process of cleaning up and rebuilding. Agricultural labour has been largely unaffected as a large majority of farms are too far from the coast to have been affected. In parts of southern Ampara rice fields were damaged, but the area damaged was within a narrow strip, and losses of 25-50% of the harvest in those fields only were reported. S In some areas there is an increased supply of casual labour due to the loss of other sources of income (e.g. former fishermen seeking work). Such competition is reducing chances of getting work, but some interviewed said that wage rates are not declining, while some also said that this is being cancelled out by the increased amount of work needed in relation to cleaning up. It is a fluid situation. S Some labourers are not seeking employment as they are prioritising house repairs and re-building, and are currently receiving enough relief to be able to do so without also having to earn income. S Labourers who did not lose homes may have lost employment if they worked in affected areas but lived in an undamaged area

4.2.4 What Can Be Done to Support the Livelihoods of Casual Labourers? S In the short- to medium-term this group need employment opportunities rather than assets. All they had was their labour; they still have that. On the one hand labourers’ time needs to be freed up by having speedy housing reconstruction so that they can then concentrate on getting back to work. On the other hand, employment availability will only increase once the better off get themselves back into a situation where they can start employing casual labourers again. (Investment needed to rehabilitate better off families is far beyond the means of most NGOs, and contrary to the usual practice of focusing on the poorer sections of society, but in this case it is a vital way of reaching the poorest.) S Cash-for-work projects would be a good way of providing temporary employment until “normal” employment opportunities are restored. These should be linked to clean-up, building/ community facility repairs and reconstruction in the short term. Such programmes must consider labour availability in the household, and the inadequacy of a normal daily wage to fund reconstruction. Some households (e.g. female-headed, elderly-headed, disabled) must not be required to work unless it can be ensured that sufficient labour is available within the household to undertake this work, without affecting all normal domestic, caring and schooling activities. Also, providing a wage that enables daily subsistence only will actually hinder recovery activities, unless accompanied by other grants or support for reconstruction and productive investment. S Considering the low returns to casual labour, the possibility of looking into alternative livelihood options should be examined. However, the common response by the aid community of vocational training - while appealing because skilled labourers earn more money - should be approached with caution and with proper analysis of market demand for skills. (There are only so many carpenters, tailors and bicycle repairmen that a local economy can sustain.)

4.3.1 Petty Trading and Vegetable Gardening Petty trading of vegetables was a common activity before the tsunami mainly for people from more inland areas where items like brinjals, potatoes, leeks, carrots and “ladies fingers” (okra) are grown on a relatively large scale. Women from those areas bring vegetables to markets on the coast for sale on a daily basis, and most earn quite small amounts – Rs100-150 per day (about Rs3,200 per month). All of the women interviewed who did this as a normal activity before the tsunami were either widowed or had a husband who through injury or disability was unable to work fully. This was only the main source of income when the family size was small, but in most cases it was one of two relatively low-yielding income-generating activities by household members.

In the coastal communities, many families were growing vegetables in small domestic gardens for their own consumption, and not for sale. Hence although this did not add to household income, it saved the household from spending a significant amount of money on vegetables, which are a central part of the daily diet.

Since the tsunami, petty trading (especially of vegetables and dried fish) is being taken up by a number of affected people, especially in areas that have had transport links damaged or near the camps where people have been displaced to (and where they are eager to supplement their dry rations of food with vegetables and various condiments).

4.3.2 Effects of Tsunami S In most cases the women normally involved in petty trade have not been affected in a systematic way. In some villages/ towns right on the coast, the market centre has been damaged and some petty traders may have lost their day’s stock (limited), or indeed their lives (this was certainly the case in Galle, but nothing of a similar scale was reported on the east coast). S Although not yet observed, the increase in the numbers of people engaging in petty trading as a coping strategy could reduce prices as markets are oversupplied (particularly when combined with lost purchasing power in affected villages), and hence the incomes of those who were involved prior to the tsunami could fall, widening the scope of the problems S Many domestic gardens near the coast were destroyed, have been covered with sand and are likely to be uncultivatable for some time. This means that affected families need to earn even more money to be able to afford to buy vegetables that they would otherwise have produced themselves

4.3.3 What Can Be Done to Support the Livelihoods of Petty Traders? S The best thing for “normal” petty traders is for local communities’ incomes to be restored so that normal market conditions return. Some who lost stocks may need credit or grants to buy new stock. S For those who had gardens, further specialised input would be required to determine whether their land is still capable of supporting vegetables, while for those whose houses have been completely destroyed they may or may not have plots of land available for cultivation in the areas to which they are relocated. Support for vegetable seeds may be appropriate, but this may be most feasibly be done as a by-product of cash-based programmes (i.e. anyone who really wants and could use seed would probably spend some of their cash transfer on seed; which is far less complicated than an outside agency doing assessments and administering distributions of seed)

4.4.1 Shopkeepers/ Businessmen Small family-run shops and other small businesses have also been destroyed along with homes, while many more have had their stock destroyed by water even if the structure is intact. There has been some loss of employment, but the majority of the small businesses seem to be family run, so they are more likely to employ occasional casual labour than to have formal employees. Where only stock was lost, a significant number of shopkeepers were observed to have already re-opened their stores with limited new stocks purchased from local wholesalers either using some remaining savings, or on credit. The amount of stock affordable varied significantly (some starting from as little as Rs3,500, and others up to Rs.200,000) and in some cases it would obviously take a long time to get back to normal without additional assistance. In no cases were supplies reported to be unavailable from wholesalers. However there were some problems with transport or accessing wholesalers. In Thirukkovil in Ampara this was because a longer alternative road had to be taken to the supply centre, thus raising prices, while bridges on both sides of Koddaikallar in Batticaloa had been damaged and therefore bulky supplies were not getting through. (Road/ bridge repairs were underway in both locations at the time of assessment, and therefore those are considered only to be very temporary problems.)

4.4.2 Effects of Tsunami S Premises destroyed/ damaged and/ or stock lost S Homes destroyed/ damaged and or possessions lost S Debts to wholesalers/ suppliers outstanding, accumulating interest, and can’t be repaid S Supplies from wholesalers temporarily cut due to damage to roads and bridges (most restored by now) S Lack of demand due to loss of income of others in community

4.4.3 What Can Be Done to Support the Livelihoods of Shopkeepers/ Businessmen? S Credit or cash/ voucher grants to replace stock for those with buildings intact, or support to repay/ swap any high-interest loans already taken out by shopkeepers by themselves to get started. (This could be quick, and would be especially useful in conjunction with any cash relief/ cash-for-work projects in the same areas to ensure that recipients of the latter have a local shop in which to spend such cash.) A typical family-run shop in Batticaloa selling basic items was said to require initial capital of about Rs500,000 to replace all stock, but as indicated above, a smaller sum of around Rs200,000 would provide a good start. S Support to physically re-build businesses would be expensive, but needs to be arranged through actors with the capacity to support this. S For family-run businesses where the husband has died, the widow may not have the social contacts/ network with suppliers that her husband had, or the business skills, and so some training/ business support for them would be necessary. 4.5.1 Female Artisans: Tailors, Sewers, Weavers

Tailoring, sewing and weaving were among the few activities that women were reported to engage in as a way of making money. Most of this work is done from home. There was a significant garment industry in Batticaloa before the war, but it is much more limited now. For sewing and tailoring, customers bring fabric themselves and the tailor makes the clothes for them, or else garments are brought for repair or alteration. A woman with a diploma reported making an average of Rs.300 per day (about Rs.7,700 per month). At the other end, a woman working in Batticaloa town reported earning only Rs1,000 most months, but up to Rs.5,000 in months with major festivals (April, December).

Weaving was an important activity in one specialised Muslim community in Marumuthimuna in northern Ampara district. An estimated 1,000 families were reported to be involved. Women and men both weave items like saris and bed- sheets, using fabric (cotton or “sarram”) that they purchase themselves, and using locally-constructed wooden looms. The items were sold to local businessmen who sold them on in other areas. The work was done mainly at home, but there are also some small “factories” where people were employed. Home-based weavers had net incomes of about Rs5,000 per person, while those working in factories were employed on a piecework basis, and earned an average of Rs3,000 per month.

In the limited interviews carried out here, children were not reported to do this work as most go to school, and the work is home-based rather than factory-based. However, it is likely that further investigation would find some of the older children from poorer families engaged in this work.

4.5.2 Effects of Tsunami S Homes damaged/ destroyed; weaving “factories” destroyed S Sewing machines/ weaving looms lost S Lot of clothes and bedsheets lost by the wider community (hence likely to be a lot of demand for work, though money to pay for the work may be limited initially)

4.5.3 What Can Be Done to Support the Livelihoods of Female Artisans? S As these are home-based activities, the first priority is to replace homes where necessary, or provide an alternative location where the work can be done S Replace sewing machines (readily purchasable from Singer in all towns, prices ranging from about Rs.15,000 to Rs.30,000 depending on purpose – general sewing or design) S Replace weaving looms (need to be constructed by local carpenters at an estimated cost of Rs50,000 each; link this to the replacement of carpenters’ tools) and provide start up capital for fabric (estimated need of Rs5,000 to get started)

4.6 Male Artisans: Carpenters & Masons Those affected will have lost homes and/ or possessions and tools. They are relatively small in number, but are very important to the reconstruction process, and also provide some employment to unskilled casual labourers. They could be supported through provision of tools or cash/ vouchers with which to buy tools. The latter is much more convenient and flexible, but we need some guarantees that the cash would be used to buy tools (so vouchers for hardware stores might be appropriate). 4.7.1 Tourism [no additional info collected in Eastern province. This section is reproduced for information purposes from unpublished notes from a brief visit to Galle & Matara, as tourism is not a major activity in Ampara/ Batticaloa; some localised tourism only]

Not enough interviews were carried out to get a very clear picture. The types of people involved include hotel/ guest-house owners, their staff, and independent “tour guides”. No details were collected on earnings.

4.7.2 Effects of Tsunami S Hotels damaged/ destroyed S Owners have lost homes and/ or assets (including stashed cash in some cases) S Immediate priority of owners is to rebuild homes S Employees and tour guides have lost jobs as well as houses and assets S Tourism market likely to be down for many months if not years

4.7.3 What Can Be Done to Support the Livelihoods of Those in Tourism? Large-scale reconstruction and continued promotion of tourism are the main responses needed. However, both of these will be expensive and will take a lot of time. Some of those affected will need to find alternative livelihoods in the short term.

4.8.1: 3-Wheeler Drivers (Tuk-Tuks) [No additional information collected in Eastern Province. Section reproduced here from the preliminary Galle/ Matara notes for information purposes only.]

3- wheelers are the main form of local passenger transport. They are either operated by the owner, or else a driver hires the vehicle from the owner for a daily payment (Rs.250 per day in Colombo). If the vehicle is hired, the driver also has to pay for the fuel (also about Rs250 per day in Colombo). In Galle and Matara, the drivers estimated that they earned Rs500-600 per day gross/ about Rs300 net (c. Rs7,800 per month if working 6 days/ week), while in Colombo the driver of a hired vehicle earned Rs1000 gross or Rs500 net per day.

4.8.2 Effects of Tsunami S 100 3-wheelers destroyed in Galle; 200 in Matara. Large numbers still operating. S Some owners/ drivers likely to have lost homes and/ or possessions, but not necessarily S Some initial disruption to fuel supplies; likely to be quickly restored S Some initial disruption to demand; will be restored as economy recovers

4.8.3 What Can Be Done to Support 3-Wheeler Drivers? Replace 3-wheelers. It is arguable whether it is better to do so on an owner-operated basis or hired (i.e. make 1 poor family richer, or help 1 middle family to some extent plus 1 poor family). Some may need start-up working capital for fuel and maintenance. There should be some credit element to such a programme. It is a relatively expensive intervention relative to the returns, though.

4.9 Formal Employees

Though not quantified in this assessment, significant numbers of people in affected areas are formally employed in a variety of jobs, especially in the larger towns on the coast. These jobs include various government positions, work in the health and education sectors, and employment with NGOs and businesses. The effect of the tsunami on such salaried employees depends first on whether their place of employment was affected. As the effects of the tsunami were quite localised within a short distance from the coast, many people who were personally affected by the tsunami still have jobs to go to and still receive their monthly salaries. For those whose place of employment was damaged or destroyed, the questions for them are whether/ when their employer will be able to resume operations, and whether they will continue to receive some payment or compensation in the meantime. In the short term, some in formal employment who lost their own homes will be prioritising cleaning up and reconstruction activities, and so may not be able to work full-time. The priority in terms of outside support for formal employees will be reconstruction of homes and places of employment. Those still receiving salaries will neither need nor in many cases want emergency food or cash relief, but rather will need more substantial support for reconstruction.

4.10 Additional Sources of Income

4.10.1 Remittances from Foreign Employment

A substantial number of families – roughly estimated at around 20% in Ampara and Batticaloa - have members who have gone overseas to work and who send back remittances. The main locations are in the Middle East, particularly Saudi Arabia, Dubai and Qatar. Men aged between 25-40 often get employment as company or domestic drivers, while women from 18 up to their early 40s get employment as housemaids and cleaners. Jobs, permits and travel are arranged by agents in Sri Lanka, with a fee of around Rs.30,000 (but up to Rs.75,000 for some jobs) being payable in advance. The foreign workers do not tend to come exclusively from any wealth group, however the agency in in Ampara reported that they are mainly from poor families who borrow money to send a family member overseas. The amount of money remitted depends on the job and the length of time the person has been working (there seem to be some restrictions on earnings in the initial months, and on travel for a longer period), and not enough information was collected to get a clear picture. Tentatively, it appeared that a typical domestic worker who has been away for some time could remit up to Rs10,000 per month, which is a reasonably high amount compared to alternative local income sources. Families receiving such remittances often use the money to build better houses, in addition to covering ongoing living expenses. With few viable income opportunities for women, single mothers often leave children with grandparents or other relatives to go overseas and try to earn enough money to support their families.

4.10.2 Effects of Tsunami S Some foreign workers who lost children or the carers of their children or property have returned home to try to deal with the situation S Their homes have been lost/ damaged, and possessions lost S Other families who have been affected by the tsunami are considering sending a member overseas as they have lost their existing livelihoods (the agent in Sainthamarathu estimated that enquiries to his office for work were double the normal level since the tsunami)

4.10.3 What Can Be Done to Support the Livelihoods of Families with Foreign Migrants? S While the economic returns to this work are significant, due to the social problems and school dropouts that can result from mothers leaving their children to work overseas, it is vital that support is given to families – particularly female- headed households – to recover their livelihoods and find viable alternative sources of income. S See the “livelihoods and protection” section for more on the risks to children

4.11.1 “Samurdhi” – Voucher-Based Social Safety Nets

The samurdhi system is the main social protection mechanism in Sri Lanka. While it comprises a number of different components (including cooperatives, savings clubs and micro-credit), the most significant component is the voucher-based safety nets element. Under the system, families should be means-tested, and families falling below a defined poverty line should be provided with vouchers on a monthly basis redeemable in local “multi-purpose cooperative stores” against specific food and non- food commodities (the value of each commodity is specified – recipients do not ordinarily have the flexibility to choose the basket of goods themselves). Problems were occasionally reported regarding prices in those stores being higher than normal market prices, thus reducing the value of the samurdhi payment to the recipient. The amount provided depends on household size and on monthly income. The most common payment is either around Rs500 per month or Rs300-350. In practice, the system does not always reach those in need. The Department of Census and Statistics’ 2002 Household Income and Expenditure Survey found that only 53% of households in the poorest decile in the country received samurdhi payments, while 25-35% of middle-income households and 2-7% of the highest income households also received the payments.

4.11.2 Effects of the Tsunami S Loss of identification documents and/ or registers of recipients may affect prompt payment. (Local officials will probably be responsible for vouching for those without documents, which could help, but also provides additional scope for mis- targeting.) S As an emergency measure, samurdhi payments are reportedly being replaced temporarily with a scheme through which all affected families will be provided with flexible vouchers worth Rs375 per person per week (i.e. about Rs7,500 per month for an average family of 5). It is not clear at the time of writing when this will start or how long it will last, though details are expected shortly.

4.11.3 What Can Be Done to Support Those Who Received Samurdhi Payments? S Monitor the provision of relief payments and the prices charged in multi-purpose cooperative stores, and advocate around coverage, targeting and pricing S Monitor the various food relief, cash relief and voucher-based systems being implemented or proposed by various agencies. There is the potential for serious over-provision of resources to some families if things are not well coordinated. All affected families in theory will receive food aid from WFP, vouchers worth Rs7,500 from the government, while various families will receive in addition various FFW and cash-for-work payments, reconstruction payments/ materials, and livelihood recovery items/ payments. There is scope for serious inefficiencies and distortions on markets, including local labour markets. 5. The Situation of Female-Headed Households

Traditionally, women are not the main breadwinners in families. From this assessment, it appeared that most of the women who carried out income-generating activities were either widowed, from very poor households, and/ or married to husbands unable to work due to disability or alcoholism. Women are also employed at the opposite end of the wealth spectrum in formal employment or skilled crafts, however.

For female-headed households, their income-earning opportunities tend to be limited. Unskilled employment opportunities include: - Local domestic work - Foreign domestic work - Petty trading of vegetables - Cooking and sale of snacks/ breakfasts in local markets/ working in tuck-shops - Poultry farming

More skilled labouring was limited mainly to sewing/ tailoring or weaving. (Unlike on the south coast, rope-making from coconut fibres was not reported to be common in these areas.) Many women also work in family-run businesses.

Incomes from the unskilled activities are very limited, and would place the women involved well into the lower end of the economic spectrum. The only exception to this is foreign domestic work, however the separation from children that this involves can be damaging to the welfare of those children, and therefore is not something that we would encourage.

Supporting existing female-headed households in the first place requires interventions that are similar in nature to those recommended for the majority of households, i.e. replace lost income-generating assets like sewing machines or cooking utensils. Care needs to be taken in supporting newly-widowed women in terms of not only identifying what they might be capable of, but also what market exists for various goods and services. Standard responses such as training women in tailoring is not realistic considering that the local market can only sustain the business of a relatively small number of tailors (although in the short term there will be a surge in demand for those services as people need to replace lost clothes). Flexible programmes of micro-credit plus basic business skills training may be most appropriate, and the experience of the many NGOs and CBOs who have been involved in this previously should be drawn upon.

Other relatively discretionary interventions will also be needed to deal with unusual circumstances. For example, one widow with 3 teenage daughters and 1 teenage son interviewed had taken out a loan of Rs50,000 to build a new house a few months before the tsunami, at a very high interest rate of 5% per month. The house was destroyed by the tsunami, along with the sewing machine with which she earned her income, but the moneylender is still insisting on repayments of Rs.2,500 each month. With no source of income there are obvious protection risks to the children and to the woman herself, for example through sexual exploitation as “payment” for the loan. In that case the provision of a new sewing machine would have to be accompanied by some additional support to pay off her accumulated debt. 6. Markets and the Cash Vs. Food Debate

6.1 Market Situation

In all areas visited, normal markets have very quickly been restored wherever the shops were not destroyed. Everywhere there is a functioning shop within a relatively short distance (at worst only adding some time to people’s journeys to shops), and all normal food and non-food items were available for local purchase. Improvements in the market situation were visibly occurring through the assessment, for example with people even in the worst-affected villages re-stocking shops or engaging in petty trade. The only effect on markets found was where normal transport/ supply routes from district hubs have been damaged, and therefore supplies have either been totally cut (only 1 village in the two districts was affected in this way, but other shops were accessible on foot within 1-2km), or the need to use longer alternative routes has resulted in price increases. In the latter case (mainly in southern Ampara), the overall cost of a basic basket of food and non-food items was 20% higher than elsewhere in the district. However, road and bridge repairs were ongoing at the time of the assessment, and therefore this will only be temporary. In the vast majority of affected areas, prices are now at the same level as before the tsunami.

The table below shows price data from a variety of small retailers in Matara, Ampara and Batticaloa districts, collected between January 2nd and 11th. The average for each area is shown, except for Thirukkovil in Ampara which is shown separately because it was the only visited area affected by significant damage to main transport routes. This accounts for the cost of living being over 15% higher than other areas. In addition to simple prices, the cost of a basic food and non-food basket per month for an average household of 5 has been calculated. The food basket provides for minimum nutritional requirements, while also including items that are not nutritionally essential, but which are vital for local acceptability and palatability2. Non-food items include soap and kerosene.

Market Prices Cost of Minimum Food & Non-Food Basket Qty Required Ampara Ampara (excl. Commodity Unit Matara Batticaloa per Month per Batticaloa Thirukkovil Average (excl. Thirukkovil Matara Cost Thirukkovil) Average Average HH of 5* Cost Cost Thirukkovil) Cost Rice 1 kg 32 37 36 46 63.0 2,016 2,300 2,268 2,898 Lentils 1 kg 83 78 76 80 9.0 744 698 684 720 Oil 1 litre 86 77 65 70 4.5 387 344 293 315 Sugar 1 kg 39 38 38 45 3.0 117 115 114 135 Tea (est.) 50g 15 15 15 15 6.0 90 90 90 90 Salt 1kg 12 11 10 15 0.8 9 8 8 11 Onions 1kg 60 72 70 80 3.0 179 216 210 240 Chillies (dried) 1kg 123 135 140 160 0.6 74 81 84 96 Veg. (est.) est./ day 30 30 30 30 30.0 900 900 900 900 Non-Food Kerosene 1 litre 26 26 26 30 1 26 26 26 30 Soap 75g 19 20 20 20 13 247 254 260 260 Health free Education public free; private has fees; not assessed Utilities not assessed

Total 4,789 5,030 4,936 5,695

It is interesting to note that the figures close to Rs5,000 per month for Ampara and Batticaloa are the same as the national Poverty Line. However, additional amounts will be required for utilities for some families, and small amounts for stationery for education.

2 Note that for tea and vegetables, there is no formal figure for the quantity required per family, therefore estimates were made with assistance from key informants of how much is consumed per month (for tea) or how much is spent on vegetables and condiments per day on average. 6.2 Short Term: Food or Cash Relief?

Due to the loss of livelihoods described above, there is no doubt that emergency relief is required for the majority of affected families until their sources of income can be restored3. However, should this relief be provided in the form of food aid or in the form of cash or vouchers?

There was no problem with market availability of food in any of the areas visited in Ampara and Batticaloa. The main Maha rice harvest is due within the next month, and with the exception of a limited strip of farms close to the sea in southern Ampara and some other flooded areas, the harvest appears set to be quite good. Cash to the value of a minimum food basket would be more appropriate than food aid and could be used to purchase all required foodstuffs. This would not only meet the food needs of affected families, but would also support local markets, and provide a much- needed injection of cash into the local economy with subsequent multiplier effects. Conversely, injecting imported food aid as relief into the local economy at the harvest time could have a depressive effect on the price of locally-produced rice (over and above the normal seasonal decline which will occur with the harvest), potentially damaging the livelihoods of local farmers and probably also the casual labourers who they employ, and will provide no secondary benefits at all to the local economy.

Ongoing research by ODI4 indicates that many of the standard fears about the use of cash relief (e.g. “misuse” of cash by beneficiaries, security fears, inflationary effects on prices) are often not as serious as feared, or can be overcome through proper management mechanisms. A number of agencies including Save the Children and Oxfam have very successful experience of using cash in a variety of contexts, while the Government of Sri Lanka’s own experience of vouchers is extensive. It may take a little time for other agencies not familiar with such programmes to adapt to the use of cash, and therefore providing food aid in the interim would be preferable to doing nothing if those are the choices. But with adequate training and support there should be no excuse not to switch to the use of cash at the earliest opportunity.

7. The Role & Situation of Children, and Livelihoods-Related Protection Issues

Sri Lanka benefits from having an unusually high level of school enrolment and literacy for the South Asia region, with free tuition supported by the free provision of uniforms and textbooks. Even though the situation in the north-east is not as positive as the national picture, with primary school enrolment at over 90% and secondary enrolment at 80% nationally, and no significant gender differences, most children’s primary role is as student. Healthcare is also free, hence access to basic services is not a problem for the majority of children. In most households, older girls assist their mothers with domestic chores (cooking, washing, etc.), but it is relatively rare for children in the communities visited to be engaged in income-generating activities.

There is however an important group of marginalised children who do not attend school. While the effects of conflict, disability and issues relating to the quality and relevance of education also contribute to drop-outs and lack of enrolment, the most

3 Note that relief to meet recurring basic food and non-food needs must be targeted on the basis of loss of livelihoods/ sources of income, rather than on loss of home or displacement, as is sometimes stated. While there is a very substantial overlap between the two, there are groups who have lost homes but not incomes (e.g. formal employees), who do not need such support, while others who lost incomes but whose homes were undamaged (e.g. a fisherman whose boat was destroyed but whose home was untouched) who should receive such support. 4 See www.odi.org.uk/hpg for further information. common reason for being out of school is related to the family being extremely poor. For example, even with the substantial subsidisation of education, some households can’t afford stationery, some need one or more children to work to help pay for the household’s basic needs, or some need the child to look after younger siblings because economic constraints have led to their mother seeking work or migrating overseas. Only limited information was gathered in this assessment on this group (and more is needed), but out of school children – particularly older girls – tended to do things like petty trading and selling of snacks in markets, while older boys would help with fishing.

In addition to the material problems around access to basic services, food and non- food items for marginalised children even in normal times, the tsunami in the existing context has created or exacerbated at least 3 clear serious protection risks for children that are at least partly related to livelihoods:

(1) Underage recruitment: the loss of traditional family structure and of livelihoods because of the tsunami creates or exacerbates conditions that could lead to child recruitment by rebel forces, e.g. - increased political rhetoric between the government and rebels gives an appearance of increased tension in the area prior to the tsunami in spite of the existing ceasefire between the LTTE and the Sri Lankan army (although there is strong anecdotal information at the grassroots level that there is good cooperation between the two sides in relation to relief) - loss of life of existing members of rebel forces due to the tsunami leading those groups to seek to replenish their ranks - loss of livelihoods, making the potential income from recruitment attractive - loss of identity documents, making verification of age difficult - separation of children or orphanhood as a result of the tsunami leaving the children without a supportive family environment

(2) Other high risk income-generating activities: the overall loss of livelihoods for families may push more children into activities where they may be at risk for example of sexual exploitation, e.g. teenage girls working as domestic servants.

(3) Relief distributions: conditions for sexual exploitation related to the distribution of relief items also exist in affected communities and camps. The experience from refugee camps in West Africa in recent years highlighted a number of conditions which increase the risk of sexual exploitation, which either currently exist in Sri Lanka or could soon arise, e.g.: - relief supplies being limited in relation to need/ high competition for registration for relief items - relatively poor management and monitoring structures in many camps resulting from the sheer scale and speed of the emergency - relatively high amounts of autonomy and limited supervision among aid agency and government staff responsible for registering beneficiaries

The basic analysis above highlights the need for a combination of rapid restoration of livelihoods, immediate sensitisation of communities and staff involved in relief in child protection issues, and the strengthening of monitoring of relief activities and of the situation of particularly vulnerable children. It should also be stressed that the objective in relating livelihoods to protection is to mitigate/ avoid creating risks through increased awareness and inclusion. We must not go to the opposite extreme and single out particularly high-risk categories of children for disproportionate or stigmatising support.

8. Conclusions and Recommendations

While there are obviously widespread needs in the areas affected, the poorer groups of fishermen, casual labourers, and poor female-headed households (plus any other families with out-of-school children who are not in the above categories) should be the top concern for NGOs and UN agencies. In some cases support for these groups would be direct (e.g. fishermen), but in other cases it would have to be indirect (e.g. creating the conditions in which employment will be available for casual labourers). The objective of such programmes is obviously in the immediate sense to restore the income of affected families, and especially those least likely to receive formal support from elsewhere. For Save the Children, the ultimate objectives will be child-focused, i.e. ensure children get adequate food, non-food needs, education and healthcare in a “normal” and sustainable way that also minimises their exposure to protection risks.

Key interventions in relation to livelihoods, therefore, would be:

S Large scale boat and fishing equipment replacement/ repair

S Support for recovery of key sectors/ groups in the local economy, such as shopkeepers, carpenters and masons (who directly employ casual labourers, or who will help families rebuild their homes and subsequently re-employ casual labourers); this is probably best done in the form of cash/ vouchers, provision of productive assets (tools, sewing machines), micro-credit (if it can be properly managed, and if it does not trap people in debt), or debt swaps (e.g. for shopkeepers who have already got new stock themselves on credit at punitive interest rates)

S Additional relatively flexible and discretionary funding for particularly marginalised groups, e.g. widows/ female-headed households (including grants or credit to replace lost assets)

S Support in the areas of micro-credit and skills-training to enable newly-widowed women and previously very low-income groups to earn at least enough to afford their minimum food and non-food needs. It is vital, however, that those activities are undertaken in a sensible and informed way that reaches the most marginalised groups, and that takes proper account of market conditions.

S Trainings/ sensitisation of aid agency and government staff related to the relationship between livelihoods, relief provision and protection issues, as part of broader protection programmes

S Ongoing monitoring of livelihoods and of the recovery process to constantly review progress, identify gaps, and adapt interventions as necessary

Contact: Michael O’Donnell Save the Children in Sri Lanka Food Security & Livelihoods Advisor 58A Horton Place, Colombo Save the Children UK Tel: (+94 11) 267 2688-70 m.o’[email protected]