ECONOMYNEXT – Sri Lanka’s current welfare system, Aswesuma, was higher at focusing on poverty than earlier schemes, however led to a decline in male labour power participation, elevating considerations about long-term fiscal sustainability and disincentives to work, a examine by the Institute of Coverage Research discovered.
“Outcomes present that with the brand new Aswesuma, meals insecurity decreased, but it surely additionally negatively affected the labour power participation, with a a lot larger discount in labour power participation seen for males,” IPS stated.
Male labour power participation is projected to fall by 5.4 share factors beneath the revised scheme (up from 4.2 factors beneath the unique), in line with IPS’ Recalibrating Aswesuma: A Transfer In direction of a Dynamic and Adaptive Social Registry in Sri Lanka by Pulasthi Amarasinghe.
“Labour power participation, particularly amongst males, is predicted to say no extra sharply with the revised advantages.
For girls, the discount is extra minor, at 1.3 share factors.
“As financial concept predicts, non-labour earnings can cut back incentives to interact in paid work, significantly in casual sectors the place wages are low and alternative prices are minimal.
“These tendencies spotlight the significance of mixing money transfers with activation insurance policies to advertise employment, abilities growth, and labour market reintegration.”
Strengthening social safety stays a important precedence for Sri Lanka, which continues to grapple with the aftermath of its financial disaster, IPS stated.
At its inception, the Aswesuma scheme offered tiered money transfers starting from 2,500 to fifteen,000 rupees based mostly on households’ poverty ranges.
In April, Cupboard accredited the growth of Aswesuma, the place after Parliamentary affirmation, households will obtain money transfers starting from 5,000 to 17,500 rupees.
Aswesuma’s effectiveness will rely upon its skill to raised determine the beneficiaries.
The examine findings had been introduced at a roundtable held on the IPS just lately, the place policymakers and stakeholders mentioned the programme’s achievements and rising challenges.
The focusing on mechanism used for the welfare scheme, launched within the wake of the financial disaster, represented a structural shift, shifting from income-based to multidimensional poverty focusing on utilizing a social registry.
The programme promised a extra holistic and goal framework to succeed in essentially the most susceptible communities by trying on the weighted deprivation of households throughout 22 standards.
The IPS examine discovered that these eligibility standards had been an enchancment over the earlier Samurdhi programme, which critics stated confirmed political patronage.
The IPS roundtable mentioned coverage classes past simulations, bettering local-level knowledge verification, refining multidimensional indicators to incorporate transient poverty and dietary dangers, and monitoring socio-economic outcomes to trace progress towards poverty “commencement.”
Aswesuma was fast-tracked to fulfill the pressing want of the time, President of the Sarvodaya Motion Vinya Ariyaratne famous, however the underlying focusing on system and registry required evaluate.
A Commissioner at Sri Lanka’s Welfare Profit Board stated there have been plans to consolidate welfare schemes and put money into stronger knowledge techniques by means of growth officers on the bottom.
The roundtable highlighted the foundations of the present social safety panorama as a hit in a transfer in the direction of a extra clear and well-targeted system.
“Nevertheless, long-term success will rely upon how effectively Sri Lanka can steadiness short-term reduction with efforts to advertise labour power participation, cut back dependency, and assist people in graduating from poverty.
“Thus, to construct resilience, social safety should grow to be extra adaptive and responsive not solely to deprivation but additionally to the dynamic dangers that form family vulnerability in Sri Lanka in the present day.”
Yow will discover the Estimating Aswesuma Effectiveness report right here. (Colombo/Jun20/2025)
