Business
New IPS publication: Estimating Aswesuma effectiveness
While Sri Lanka slowly recovers from its largest economic crisis so far, social protection programmes are central to the country’s growth. The crisis has put a large set of households in or near poverty, with households reeling from losses in income and price hikes.
Social protection is not a new topic for Sri Lanka; however, existing social protection programmes at the onset of the economic crisis in 2022, were unable to provide the necessary relief for many low-income families. With limited government funding, these programmes had difficulties in expanding, and According to the World Bank’s estimate from 2023, poverty rose to 25% in 2022, from 11.3% in 2019.
This increase in poverty signalled a widespread need for improved social protection mechanisms, and in response, the Government of Sri Lanka (GOSL) introduced Aswesuma as a temporary measure to replace the existing Samurdhi programme. Aswesuma aims to more accurately identify and assist the most vulnerable households through targeted cash transfers, supporting their pathway out of vulnerability.

Dr Pulasthi Amarasinghe
The programme employs a multidimensional approach to assess the eligibility of applicants for cash transfers using 22 selected indicators across six dimensions: education, health, economic status, housing conditions, family demographics, and assets. Beneficiaries receive varying monthly cash transfers for six months up to three years, depending on the severity of their poverty status, with the most deprived households across the evaluation criteria receiving larger cash transfers for the maximum duration.
IPS’ latest study titled “Estimating the Effectiveness of Aswesuma: Targeting and Welfare Outcomes in Post-Crisis Sri Lanka,” by IPS Research Fellow Dr Pulasthi Amarasinghe examines the Aswesuma scheme and its eligibility criteria in identifying poor households and in having an impact on key household welfare impacts. Moreover, suggestions on improving selection criteria are considered following simulations of impact under additional eligibility criteria.
The study develops a robust analytical framework to simulate the effects of Aswesuma cash transfers on household welfare across different eligibility scenarios. It also provides insights on improving the programme’s targeting effectiveness by comparing with the multi-dimenstional vulnerabilities faced by Aswesuma eligible households with those who received Samurdhi. The results enable decision-makers to evaluate the possibility of utilising joint or weighted criteria of 22 indicators used in selecting eligible candidates and to identify the necessary changes to move people along the poverty evaluations set forth by the programme criteria. The addition of other factors affecting key welfare outcomes highlights the importance of including climate change and disaster preparedness as a subset of eligibility criteria.
Thus, in evaluating the effectiveness of the Aswesuma programme, our latest publication looks at the specific objectives of:
Assessing the effectiveness of the multidimensional criteria of current Aswesuma to identify households relative to its predecessor Samurdhi Programme.
Estimating the suitability of Aswesuma indicators in determining the effects on key outcomes related to household welfare.
Analysing the impact of the proposed criteria and transfers on welfare outcomes
Examining programme transformation suggested to improve targeting and better outcomes.
The current improvements to Aswesuma require enhancing its ability to target individuals in chronic poverty (when individuals or households experience a state of deprivation over many years and, at times, pass it on to future generations) and transient poverty (short-term losses in income or expenditure despite having sufficient resources, in the long run, to stay above the poverty line (Duclos et al., 2078)). The current indicators of the Aswesuma programme, which are used to calculate the deprivation score, focus primarily on chronic poverty.
Estimating Aswesuma Effectiveness can be downloaded from here: https://www.ips.lk/estimating-aswesuma-effectiveness/
Business
AAC looks towards a future of vertical mobility in Sri Lanka
The Automobile Association of Ceylon (AAC) is looking beyond the traditional boundaries of mobility and road safety toward the future of mobility through sustainable developments in vertical mobility applications under the global guidance of the Fédération Internationale de l’Automobile (FIA).
AAC President Mr. Dhammika Attygalle believes AAC has the potential to contribute sustainable and proven systems, regulatory understanding, and international mobility frameworks toward developing Sri Lanka’s future mobility landscape while supporting the country’s broader economic development.
Representing Sri Lanka at the recent FIA Regional Drone and Vertical Mobility initiative held in Nepal was AAC Executive Committee Board Member Indula Sumithraarachchi, who participated alongside regional delegates and international mobility experts discussing the applications of vertical mobility systems and evolving regulatory frameworks covering mobility integration, safety, aviation and legal regulations.
“As mobility technologies evolve globally, we see vertical mobility as a natural extension of future mobility ecosystems. We believe vertical mobility is connected to sustainable areas not limited to future urban mobility, transport and logistics, infrastructure integration, safety frameworks, disaster and emergency response, and environmental efficiency,” he stated.
Drones are already being commercially utilized in Sri Lanka for dronegraphy (photography and videography using drones), agriculture, surveying and mapping, events, and marketing. However, it is important that greater attention is given toward safety standards, operational protocols, and aviation regulations, licensing, approvals and career professionalism as drone pilots within Sri Lanka in order to make these technologies safer and more accessible to the public.
International mobility experts increasingly recognize drones as part of a wider vertical mobility ecosystem operating alongside aviation and respective local regulatory frameworks. Experts explain that drone systems are helping countries establish regulatory structures, safety standards, technical expertise, aerial management systems, and operational frameworks that may eventually support broader future mobility technologies.
For AAC, the relationship between drones and vertical mobility represents a wider future mobility framework involving how people, services, safety, infrastructure, information, and transport systems may operate in more connected, intelligent, and efficient ways beyond conventional road-based transportation.
For decades, AAC has played an important role in Sri Lanka’s mobility sector through road safety advocacy, motoring assistance, tourism support services, driver awareness initiatives, and public mobility education. The association has continuously contributed toward improving safe mobility practices for Sri Lankan road users and motorists.
AAC now aims to position Sri Lanka within these evolving international mobility conversations while ensuring that future mobility development remains safe, responsible, and aligned with international standards.
The association also believes collaboration between regulators, aviation authorities, educational institutions, private sector innovators, and international mobility organizations will become increasingly important as future mobility ecosystems continue to develop globally.
Through FIA-supported international engagement and regional collaboration, AAC hopes to contribute toward building awareness and understanding of future mobility opportunities while ensuring Sri Lanka remains connected to emerging global transportation developments.
As mobility increasingly moves toward smarter, interconnected, and technology-driven systems worldwide, AAC’s initiatives into vertical mobility reflect its broader vision of supporting safe, progressive, and future-ready mobility solutions for Sri Lanka and future generations.
Business
Vietjet Air announces Colombo – Ho Chi Minh City route
Vietjet Air, Vietnamese new-age hybrid airline, has announced its first direct service connecting Colombo to Ho Chi Minh City at the Sri Lanka – Vietnam Trade, Investment and Tourism Cooperation Forum. The announcement took place in the presence of General Secretary and President of Vietnam To Lam, Prime Minister of Sri Lanka Harini Amarasuriya, and senior officials from both countries.
This is the airline’s first direct service between Sri Lanka and Vietnam, supporting the airline’s international expansion while contributing to stronger economic, trade, tourism, and people-to-people ties between the two nations.
The Colombo – Ho Chi Minh City route is expected to commence in August 2026 with four round-trip flights per week. Travelers from Colombo will soon enjoy affordable fares and seamless connectivity to Vietnam’s leading tourism and business hubs, along with convenient access through Vietjet’s extensive international flight network to major destinations across the Asia-Pacific region, including Australia, Japan, South Korea, China, and beyond.
Business
SDB bank and Hayleys Mobility forge strategic partnership to advance sustainable mobility and private vehicle leasing
SDB bank has entered into a strategic partnership with Hayleys Mobility Limited through the signing of a Memorandum of Understanding, reinforcing the bank’s commitment to expanding access to structured mobility financing while advancing its broader sustainability banking agenda. The collaboration brings together two established institutions to support customers seeking leasing solutions for private vehicles, with a notable emphasis on electric vehicles as part of a more future-focused approach to transportation.
The MoU was signed recently at the Hayleys Mobility office in Union Place, in the presence of senior representatives from both organizations. Representing SDB bank Kapila Ariyaratne, Executive Director and Chief Executive Officer, Manoj Akmeemana, Deputy Chief Executive Officer, Chitral De Silva, Chief Business Officer, Lahiru Ekanayake, Head of Leasing and Tharanga De Silva Chief Manager, Business Banking were participated. Hayleys Mobility Limited was represented by Managing Director Hasith Prematillake, Director Roshani Dharmaratne, Mr. Panduka Rathnayake – General Manager Finance, and Mr. Suraj Chularathne – Assistant General Manager.
The partnership is designed to expand access to private and sustainable leasing solutions across Sri Lanka, while also responding to growing interest in cleaner and more responsible mobility choices. By placing special focus on electric vehicle leasing, the initiative reflects SDB bank’s recognition of changing customer preferences and the importance of supporting more sustainable transport options through accessible financing.
In addition to supporting conventional private vehicle financing, the collaboration enables customers to benefit from a more integrated experience that brings together vehicle selection and financing under a single proposition. Through the combined reach of SDB bank and Hayleys Mobility, the partnership is expected to improve accessibility and convenience for customers across the country, including professionals, self-employed individuals, business owners and other private vehicle buyers looking for reliable, structured leasing solutions.
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