Zakath and poverty: Why the powerful tool falls short in Sri Lanka

ZAKATH (micro finance of a minority Muslim community) is not merely an act of charity but a system meant to eradicate poverty and strengthen social justice. In Sri Lanka, however, its potential remains underutilised due to a consumption-heavy approach and lack of sustainable strategies. Unless zakath distribution evolves from relief to empowerment, Muslims will continue to face the painful irony of widespread poverty, which is said to be three times higher than the national average.

- By N.M.M. Mifly

In Sri Lanka, zakath is too often spoken of only during Ramazan, when most Muslims rush to fulfil their duty and then let the dialog fade away for another year. Yet, zakath was never meant to be a passing ritual; it is a social justice and a lifeline for the poor. If practiced with vision and commitment, it can become a powerful force that uplifts families, restores dignity, and transforms entire communities.

By raising this call now, I hope to awaken zakath payers, administrators and other stakeholders for a continuous dialogue - one that sees zakath not as a seasonal obligation, but as a year-round mission of justice and compassion.

Muslims and poverty in Sri Lanka

According to the International Poverty Index, an individual earning less than Rs. 645 ($ 2.15) per day is considered to be living below the poverty line. Accordingly, a family of five requires a minimum monthly income of Rs. 96,750 to remain above the poverty threshold.

Based on international data, when examining the economic condition of Sri Lankan Muslims, the question arises: out of roughly 500,000 Muslim families, how many actually earn more than Rs. 96,750 per month? My observation is that well over 75% of the Muslim community continues to live below the poverty line.

When viewed against national statistics, the picture becomes even more concerning. According to 2024 data, Sri Lanka's per capita income stands at Rs. 1,296,000 ($ 4,320) per year. For a family of five, this translates into an average monthly household income of Rs. 540,000. Readers may judge for themselves how many Muslim families actually reach this benchmark. In my assessment, fewer than 10% of all Muslim households fall into this category.

This article does not attempt to revisit the usual questions such as what zakath means, which items are subject to it, what is exempt, or what rates apply. Those matters have been discussed in depth for centuries.