Enhancing Livelihoods through Zakat and Sadaqah for Poverty Reduction in Sri Lanka
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Community Association of Professionals (CAP), Sri Lanka
Abstract
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Sri Lanka continues to face persistent poverty and widening socio-economic disparities, particularly among minority communities that remain highly vulnerable to recent economic shocks, soaring inflation, and the prolonged impacts of the COVID-19 pandemic. These challenges have intensified the hardships of low-income Muslim households in the country, where employment opportunities are limited, and the cost of living has risen sharply. Within this context, Islamic social finance instruments Zakat (obligatory almsgiving) and Sadaqah (voluntary charity) present a religiously motivated, culturally grounded and sustainable mechanism for poverty alleviation. Zakat is one of the five pillars of Islam. Yet, despite their strong presence in community life, the current practice of Zakat and Sadaqah distribution in Sri Lanka remains largely informal, inconsistent, and fragmented. This research project, titled “Enhancing Livelihoods through Zakat and Sadaqah for Poverty Reduction in Sri Lanka,” was conceptualised and initiated 6 years ago, recognising the need for a scientific, structured, and evidence-based approach to leveraging islamic charitable funds for long-term economic empowerment. While the foundational desk studies and model development began earlier, the comprehensive field survey spanning five districts and involving community beneficiaries, fund administrators, and institutional stakeholders was conducted over the last six months, ensuring up-to-date, context-sensitive data. The project was finalised in 2025, driven by the urgent national need to strengthen poverty reduction and livelihood development efforts as a meaningful contribution to Sri Lanka’s socio-economic recovery.
The overarching goal of the study is to transform Zakat and Sadaqah from short-term relief mechanisms into strategic instruments of sustainable livelihood enhancement. Using a mixed-methods approach, the research engaged 185 participants through surveys, interviews, and focus group discussions. Analytical methods, including poverty mapping, socio-economic
profiling, and thematic analysis, were applied to identify administrative gaps, institutional limitations, and livelihood opportunities across regions.
Keywords
Zakat, Sadaqah, Poverty Reduction, Sri Lanka
Citation
Zuhyle, S. A. C. M., Careem, M. A., Ruzaik, F., & Cassim, M. A. (2026). Enhancing Livelihoods through Zakat and Sadaqah for Poverty Reduction in Sri Lanka. Community Association of Professionals (CAP), Colombo, Sri Lanka.