Business

Revamping welfare: Is Aswesuma the salvation Sri Lanka’s poor hoped for?

Published

3 years ago

2023/09/7

Lakshila Wanigasinghe is a Research Officer at the IPS with research interests in poverty, social welfare, development, education, and health. She holds an MSc in Economics with a concentration in Development Economics and a BA in Economics with concentrations in International, Financial and Law and Economics from Southern Illinois University Carbondale (SIUC), US. (lakshila@ips.lk)

By Lakshila Wanigasinghe

With the introduction of Aswesuma as a brand-new initiative targeting the poor and vulnerable, social protection in Sri Lanka has been a much-debated subject lately.

Aswesuma primarily intends to overcome some key weaknesses of existing social protection programmes – at least on paper – but several challenges prevail. However, opinions regarding its capabilities to accomplish this remain ambiguous. The public has been protesting the scheme, and opposition party critics have called it an unfair political gimmick. Initially scheduled for disbursement in July 2023, the benefits for July finally commenced distribution last Monday (28th August) for 800,000 beneficiaries.

This blog delves into the key areas that warrant clarification, with the hope that authorities will address these concerns transparently.

Eligibility and Beneficiary Selection

Aswesuma introduces a multi-dimensional approach to poverty assessment, a notable improvement from the family size-based method employed by its predecessor, Samurdhi. Aswesuma employs six criteria measured by 22 indicators to determine if a household is non-poor or poor and deserving of assistance. Accordingly, eligible families receive assistance under four social groups (Table 1).

Publication of Aswesuma’s initial eligibility lists sparked concerns as many households called it unfair and demanded re-evaluations. As a result, 982,770 appeals and 62,368 objections arose from the process that followed. The sizeable appeals and objections raise questions about the accuracy of the selection process. Nearly 650,000 appeals were from already approved beneficiaries requesting an upgrade to a higher allowance category. However, without information on the cut-off points for the total number of families per beneficiary category and criteria determining allowance amounts, it is difficult to draw any conclusions regarding the methodologies’ ability to identify the most deserving families. The appropriateness of certain indicators, such as those assessing the “economic level”, comes under scrutiny due to their sensitivity to fluctuations like electricity consumption patterns and inconsistent monthly incomes.

Fate of Samurdhi Recipients

In 2022, Samurdhi cash transfers supported approximately 1.76 million beneficiaries. In contrast, Aswesuma aims to support 2 million beneficiaries annually. So far, Aswesuma has over 1.7 million eligible beneficiaries, of which nearly 950,000 are families that did not previously receive government welfare assistance. Over 1.28 million Samurdhi recipient households applied for Aswesuma, of which only 887,653 are eligible.

Cabinet approval was recently granted to extend Samurdhi cash transfers to 393,094 existing Samurdhi recipients unqualified for Aswesuma until the appeals and objections process concludes. Perhaps some of them will be included in Aswesuma’s final beneficiary list; however, it is unlikely that all will. Since Aswesuma attempts to correct Samurdhi’s targeting errors, understandably, some existing Samurdhi recipients are left out. However, it is important to ensure that those truly in need are included. Failure to do so will remove the support these families receive through Samurdhi and leave them without Aswesuma. Additionally, uncertainties linger for recipients who did not apply for Aswesuma (households that were unaware of the application process, missed the deadline, etc.), leaving them without any support.

Monitoring and Evaluation

Aswesuma will conduct annual beneficiary evaluations to ensure support to the most deserving. While eliminating non-deserving beneficiaries (one of Samurdhi’s key weaknesses) is much needed, concerns exist as it is unclear how reassessments will occur. Conducting household surveys annually is tedious, especially considering that beneficiaries are expected to be selected for Aswesuma’s second year even before the official commencement of the first.

The transitional and vulnerable beneficiary categories only receive assistance for a short period. Given this, will new beneficiaries be added to these categories after the end of the allowance period or following yearly revaluations?

Samurdhi Bank Regulation

Aswesuma benefits will be dispensed as direct deposits to beneficiary bank accounts. This is only to involve banks regulated under the Central Bank of Sri Lanka (CBSL). This approach aims to prevent third-party involvement in the process, as seen with Samurdhi, where cash transfers were done via the Samurdhi Department.

Interest has been shown to regulate Samurdhi banks and bring them under the purview of the CBSL. In this regard, discussions are underway on developing a credible system to regulate the Samurdhi banking system. Samurdhi banks established under the Samurdhi Authority Act operate as independent bodies. Hence, regulating them would likely require amendments to the Act, which is a complex and time-consuming task.

After regulation, using Samurdhi banks for the Aswesuma benefit disbursement seems like the obvious choice. Samurdhi is a familiar entity among villagers, and its widespread banking network makes it easily accessible rurally. However, the regulation has not yet been confirmed, and if it were to occur, it cannot be done within a short span of time, and hence, its ability to support Aswesuma in its initial three years is unlikely.

Continuity of Aswesuma

Attempting to correct the weaknesses of existing poverty alleviation programmes is a good starting point. However, this must be done in a logical manner. On paper, Aswesuma seems somewhat convincing, yet its practical application is to be seen.

With a three-year timeline, Aswesuma’s true impact on poverty alleviation remains uncertain. Whether the programme will be extended or if Aswesuma will conclude as a short-term relief initiative and be replaced with a new long-term poverty-targeted programme remains undisclosed.

Nonetheless, the success or failure of Aswesuma depends not on its ability to provide temporary relief but on whether it helps families graduate from poverty. Ultimately, the focus of any poverty-targeted programme should be to strive towards poverty alleviation. Although this is a long-term goal, benefits received through Aswesuma should at least push recipients toward improving their lives and livelihoods. Aswesuma should have a mechanism to support families in discontinuing their reliance on government assistance. Irrespective of whether this is done through Aswesuma or Samurdhi, it is important to communicate these plans with all relevant parties clearly.

Aswesuma’s continuity involves better information dissemination to avoid confusion among recipients, policymakers, and implementors. Flexibility will be key as this is undoubtedly a learning experience with corrective measures to be taken along the way. As the scheme encountered several practical challenges during implementation, addressing them and providing the first instalment to the most deserving families is of utmost importance now.

Link to original blog: https://www.ips.lk/talkingeconomics/2023/09/05/revamping-welfare-is-aswesuma-the-salvation-sri-lankas-poor-hoped-for/

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Business

Janashakthi Life delivers 36% revenue growth, ‘outperforming the industry’

Published

41 mins ago

2026/09/3

Sahan Weerasooriya

Janashakthi Life, the flagship company of JXG (Janashakthi Group), delivered a strong first-half performance in 2026, with Gross Written Premiums (GWP) increasing by 36% year-on-year to Rs. 5.11 billion. The Company’s growth significantly outpaced the industry’s 20.8% growth during the period, reflecting continued demand for its life insurance solutions and progress in expanding its customer base and strengthening its market presence.

The Company’s balance sheet also continued to expand, with total assets increasing to Rs. 41.14 billion as at Q2 2026, compared to Rs. 40.37 billion at the end of 2025. The growth reflects the continued scale of the business and provides a stronger platform to serve an expanding policyholder base while investing in the capabilities required to support its next phase of growth.

During the first half, Janashakthi Life paid Rs. 2.24 billion in claims and benefits, reaffirming its commitment to supporting policyholders when it matters most. These payments provide essential financial support at critical moments in the lives of individuals and families, highlighting the vital role of life insurance in protecting their financial wellbeing and long-term security.

The Company remained profitable during the period, recording Profit Before Tax (PBT) of Rs. 271 million, excluding the surplus transfer for the period. With the declaration of the surplus transfer, profitability is expected to be substantially higher. Janashakthi Life remains focused on strengthening earnings quality, managing costs effectively, and translating business growth into sustained improvements in overall performance.

Annika Senanayake, Chairperson of Janashakthi Insurance PLC, said, “The performance in the first half reflects the strength of Janashakthi Life’s business and the opportunities that exist to further develop the life insurance market in Sri Lanka. We remain focused on building a business that combines sustainable growth with sound fundamentals, while making insurance more accessible to a wider segment of the population. As part of JXG, Janashakthi Life is well positioned to leverage the Group’s financial services ecosystem and continue strengthening its position in the market.”

Ravi Liyanage, Director/CEO of Janashakthi Insurance PLC, said, “The first half delivered strong growth across key areas of the business, with GWP increasing 36% to Rs. 5.11 billion. In all key segments, namely regular business, group life business and single premium business, the Company has outperformed the industry significantly, demonstrating its market challenger behaviour. The Company is strengthening its stability, crossing LKR 41 billion in assets under management. Our focus now is on building on this momentum through stronger distribution, improved productivity and disciplined cost management, while continuing to enhance the customer experience by providing an unmatched service throughout the lifespan of the service contract.”

The first-half performance provides a strong platform for Janashakthi Life to build on its growth plans for the remainder of the year. The Company will continue to focus on expanding access to life insurance, strengthening customer relationships and developing solutions that respond to changing financial priorities.

With GWP growth significantly ahead of the industry, a growing asset base and increased claims and benefits delivered to policyholders, Janashakthi Life continues to build scale across its core operations. The Company remains focused on disciplined growth, stronger execution and improving the quality of its performance, with the objective of creating sustainable value for policyholders, shareholders and the wider business.

Further reinforcing its strong market standing, Janashakthi Life was recognised among Sri Lanka’s 50 Best Workplaces™ for 2026 by Great Place To Work® Sri Lanka and was also named among Brand Finance’s Sri Lanka 100 Most Valuable Brands. These recognitions reflect the Company’s continued focus on building a strong brand, delivering value to customers and creating a high-performing organisation. (JXG)

Business

Hunas Holdings and CCH enter strategic collaborative partnership

Published

43 mins ago

2026/09/3

Sahan Weerasooriya

(L-R): Dhanuka Samarasinghe (Chairman - Hunas Holdings PLC) Yoshihiko Tanabe, Director CCH

Major Japanese business group sees long-term potential in Hunas Holdings as the two organisations explore new opportunities for growth in Sri Lanka

Hunas Holdings PLC is entering a new phase of growth through a collaborative partnership with CCH Co., Ltd. (CCH INC.), a major Tokyo-based business group with experience across business process outsourcing (BPO), in-house services, investment, mergers and acquisitions, and business development.

The partnership follows a period in which Hunas Holdings maintained a measured approach to new investments amid volatile market conditions, focusing on identifying the right opportunities and international relationships capable of creating sustainable long-term value.

Founded in Japan in 2008, CCH has grown into a significant and diversified business group with interests across multiple industries. Its approach combines investment with M&A, business development and operational expertise, enabling the company to play an active role in the businesses and markets it enters.

For CCH, the partnership represents an opportunity to bring this experience to Sri Lanka through Hunas Holdings, an established local group with a strong platform and long-term growth ambitions.

Yoshihiko Tanabe, Director of CCH Co., Ltd., said: “Through our discussions with Hunas Holdings, we see a company with strong foundations, local expertise and a clear ambition for growth. We believe there is meaningful potential in bringing the strengths of CCH and Hunas Holdings together. I am excited about this partnership, and particularly about some of the projects and opportunities we are already exploring together. There is much to look forward to soon”

For Hunas Holdings, the collaboration marks a renewed chapter of investment and international partnership, while for CCH, it reflects confidence in Hunas Holdings and the opportunities presented by the Sri Lankan market.

Business

Prime Minister to headline Sri Lanka Economic and Investment Summit session

Published

44 mins ago

2026/09/3

Sahan Weerasooriya

Dr Harini Amarasuriya

Dr. Harini Amarasuriya, Prime Minister of Sri Lanka, will deliver the keynote address at a special session on day 2 of the Sri Lanka Economic & Investment Summit 2026 organised by The Ceylon Chamber of Commerce, titled “Nation Building in the Digital Age”, on 13 October 2026 at the Shangri-La Colombo.

The session will examine how Sri Lanka can use artificial intelligence, digital transformation, innovation and education to accelerate economic growth, improve productivity and build a knowledge-driven economy. As technology reshapes industries and the nature of work, the discussion will focus on how Sri Lanka can develop the capabilities needed to remain competitive and create opportunities for future generations.

The Prime Minister will be joined by Waruna Sri Dhanapala, Secretary, Ministry of Digital Economy; Prof. Roshan Ragel, Senior Lecturer in Computer Engineering, University of Peradeniya; and Sanjay Shah, Founder and CEO, Elevante AI, who together will add perspectives from government, academia, and industry. Vinod Hirdaramani, Chairman of Hirdaramani Group and Deputy Vice Chairperson of The Ceylon Chamber of Commerce, will moderate the session.

The discussion will look at the opportunities and challenges presented by emerging technologies, including artificial intelligence and automation, and their potential to transform industries and create new areas of economic activity. It will also consider the role of digitalisation in improving public services and supporting entrepreneurship.

Education and skills development will be another important part of the conversation, particularly as the demand for new capabilities grows alongside technological change. The panel will consider how Sri Lanka can prepare its workforce for future jobs while developing an environment that supports innovation and technology-led businesses.

The session will also look beyond technology itself to the wider conditions needed for a digital economy to grow. Policy, investment, infrastructure, education and collaboration between government, industry and academia will all have a role in determining how effectively Sri Lanka can turn technological change into economic opportunity.

Held under the theme “Positioning Sri Lanka in a Changing Global Economy: Resilience, Reform, and the Future of Economic Policy,” SLEIS 2026 will offer perspectives from senior policymakers, business leaders, investors and international experts over two days of discussions on Sri Lanka’s economic direction, investment opportunities and the reforms needed to support future growth.

Registrations are now open at https://sleis.chamber.lk/. For more information, contact Alikie on 011 558 8805 (alikie@chamber.lk) or Shanuka on 0701082541 (events.division@chamber.lk).