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Harnessing social protection during pandemics

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Strengthening social protection systems is of critical importance to respond to shocks such as COVID-19. They play a vital role in addressing consumption shortfalls and supporting income and job security for affected communities. Many countries have been taking various measures to strengthen their social protection. These include social assistance measures like cash and in-kind transfers, social insurance measures like pensions, unemployment benefits, social security contribution waivers/subsidisation, and active labour market related measures such as wage subsidies and training measures.

The government of Sri Lanka too introduced a relief package that included both financial and non-financial assistance to help households that were affected by the pandemic. One of the key measures was a social protection measure, i.e. a monthly cash transfer of LKR 5,000 for two consecutive months (April and May 2020) to various vulnerable groups. This social protection measure was based on a number of existing social protection schemes like the Samurdhi cash transfer programme, disability assistance, farmers’ and fishermen’s pension schemes etc. In addition, committees were set up in each Grama Niladhari (GN) division/ward to identify and approve other deserving individuals and families for this cash grant.

Horizontal expansion

Sri Lanka’s social protection response to COVID-19 showed a horizontal expansion/scaled-up coverage compared to the pre-COVID-19 level; it covered not only the current beneficiaries of the programmes considered (e.g. Samurdhi, elder’s assistance and disability assistance programmes) but also those who were in the waitlists as well as individuals and families selected by the Committees.

This social protection measure also indicated some level of vertical expansion, i.e. higher level of benefits compared to their pre-COVID-19 levels. Yet, the level of generosity of the benefits (compared to the pre-COVID-19 levels) varied from 0% to over 100% depending on the beneficiary category (see Figure). For example, over 100% increase in benefits was seen among the current beneficiaries of the Samurdhi and elders assistance programme while beneficiaries of the disability assistance programme and kidney patients allowance merely received their regular monthly allowance of LKR 5,000.

 

Recommendations

Despite the expansion, the cash transfer scheme had a number of limitations. Immediate/short-term measures like distribution of cash assistance are inadequate to sustain the recovery and to mitigate future crises. Long-term measures are required to strengthen Sri Lanka’s social protection.

• Integrated Social Protection System: The COVID-19 pandemic highlights the need for an integrated social protection system and a unified and coordinated structure at the national level as well as at the divisional level in Sri Lanka. The existing system is a fragmented system with parallel structures.

• Scaled-up /Universal Coverage: The pandemic has also shown that not only the poor and vulnerable, but all segments of the population require protection. This calls for a universal social protection system, including social protection floors.

• Digitisation of Payments: Digital payment systems are key to improve efficiency of the delivery process without delays and higher transaction costs, while complying with health guidelines to combat a pandemic. They do not require both physical mobility of people and payments in cash. Thus, it is time for Sri Lanka too to move towards a digital payment system for delivery of cash transfers.

This Policy Insight is based on the comprehensive chapter on “Harnessing Social Protection During Pandemics” in ‘Sri Lanka: State of the Economy 2020’ report – the flagship publication of the Institute of Policy Studies of Sri Lanka (IPS). The complete report can be purchased from the Publications Unit of the IPS.



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HNB partners IDEAL Motors to drive financial freedom through vehicle leasing solutions

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HNB, Senior Vice President/Head of Retail Banking, Kanchana Karunagama and Director of Legal & Corporate Affairs, Nimisha Welgama sharing the MoU, alongside the representatives from both organizations

HNB PLC, the leading private bank in Sri Lanka, has partnered with IDEAL Motors (Pvt) Limited to provide customers with attractive leasing solutions for brand-new vehicles & generators .

The partnership introduces a range of benefits designed to support individuals, entrepreneurs, and businesses seeking reliable vehicle and power solutions. Through this collaboration, customers can access structured lease facilities, special interest rates, free life insurance coverage, and attractive discounts through HNB General Insurance.

Commenting on the partnership, HNB, Senior Vice President/ Head of Retail Banking, Kanchana Karunagama, said, “At HNB, we believe that the right financial support can help people and businesses move forward with greater confidence. This partnership with IDEAL Motors shows our commitment to creating meaningful solutions that make vehicle and power investments more accessible, while helping our customers achieve their personal and business aspirations. By combining HNB’s financial expertise with IDEAL Motors’ industry capabilities, we are creating opportunities that support the ambitions of Sri Lankans and contribute towards a stronger, more connected economy.”

Customers purchasing vehicles through IDEAL Motors will also benefit from exclusive offers including free registration, and discounts on Bolero Maxx Pik-Up, Alfa Plus Load Carrier, Mahindra Pik-Up Single Cab, Mahindra Pik Up Double Cab, XUV 3XO vehicles, creating greater value throughout their ownership journey.

IDEAL Motors (Pvt) Limited, Director Legal and Corporate Affairs, Nimesha Welgama, said, “Our collaboration with HNB represents a shared commitment to supporting Sri Lankans in achieving greater financial independence through accessible ownership solutions. By combining IDEAL Motors’ mobility and power solutions with HNB’s financial expertise, we aim to empower individuals and businesses with opportunities that contribute to economic progress and community development. This partnership highlights our vision of creating lasting value by enabling customers to confidently invest in their future.”

With IDEAL Motors recognised for its diverse portfolio of automotive and power solutions, and HNB’s extensive expertise in financial services, the partnership aims to provide a seamless experience from selection to ownership, supported by flexible financing options and customer focused solutions.

The partnership further strengthens HNB’s commitment to supporting economic progress by providing financial solutions that enable customers to invest in personal mobility, commercial growth, and business continuity. Through collaborations with leading industry partners, HNB continues to expand opportunities for Sri Lankans while delivering a banking experience built around accessibility, trust, and value.

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Sri Lanka Insurance Corporation General and the Ministry of Education committed to protect Sri Lanka’s schoolchildren

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Sri Lanka Insurance Corporation General Ltd (SLICGL) and the Ministry of Education, Higher Education and Vocational Education share a commitment to protect Sri Lanka’s children throughout their school education. The pledge is delivered through the Suraksha Student Insurance Scheme, which protects over 4 million school children.

The Government of Sri Lanka, through the Ministry of Education, Higher Education and Vocational Education, provides the Suraksha Student Insurance Scheme free of charge to schoolchildren throughout the country. SLICGL is proud to partner with the Ministry in delivering this national initiative, which helps safeguard students against the financial impact of unforeseen circumstances.

Eligible students include those aged 5-21 years in Grades 1-13 from government schools, government-approved private schools, and Pirivena education, as well as students aged 4-21 years in assisted special schools.

The scheme provides hospitalisation, outpatient and critical illness cover, as well as personal accident cover for permanent and temporary disability, together with a life insurance benefit for children from low-income families on the death of a parent. Cover applies to incidents within and outside school premises.

For a child, an illness or accident can be far more than a temporary setback. It can place added pressure on a family and, in some circumstances, disrupt schooling. Suraksha acts as a safety net, giving children and their families greater peace of mind and helping them stay in school despite life’s uncertainties. The scheme is easily accessible through SLICGL’s islandwide network of 200 branches and customer service centres.

Children’s Day is a celebration of hope, the hope for every child to have the opportunity to learn, grow and build a better future. Celebrating children also means protection, not for a single day but for every day they spend in the classroom.

Commemorating Children’s Day, SLICGL extended support towards the educational needs of children at an underprivileged school. The project highlighted the company’s belief in protecting the future not only by being supportive when the unexpected happens, but also in helping create an environment in which children can learn, grow and fulfil their potential.

As Sri Lanka’s National Insurer, SLICGL’s role goes further than protecting people against risk. It is also about contributing to a stronger, safer and more resilient country as children’s education, wellbeing and aspirations contribute directly to help build the journey ahead.

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Vietjet launches Hanoi to Prague route via Almaty, expanding to Central Asia and Europe

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Inaugural celebrations for the new Prague to Almaty and Prague to Hanoi services mark an important milestone in Vietjet’s intercontinental network expansion

Vietjet, which already flies between Colombo and Ho Chi Minh City, has officially launched new services connecting Hanoi with Almaty, Kazakhstan, and Prague, Czech Republic, as well as Almaty with Prague, expanding its intercontinental network and marking its entry into the European Union. The new air links offer more affordable travel options while fostering greater tourism, trade and cultural exchange between Asia and Europe.

For Sri Lanka, the new routes widen the network that Vietjet is building out of Colombo. The airline has operated non-stop flights between Colombo and Ho Chi Minh City since August 2026, three times a week on Tuesdays, Thursdays and Saturdays, while its new Ho Chi Minh City to Maldives service via Colombo is scheduled to begin on 5 December 2026. With Hanoi now linked to Central Asia and Europe, Sri Lankan travellers have a growing choice of destinations reachable through Vietjet’s extensive network.

The inauguration ceremonies took place at Almaty International Airport and Václav Havel Airport Prague on 10 October, amid a warm welcome from local leaders, residents and visitors. The inaugural flights were greeted with traditional water cannon salutes and performances showcasing local cultural heritage, marking the beginning of new journeys connecting the three regions and welcoming international travellers to Vietnam. Passengers on the inaugural flights also received commemorative gifts from Vietjet and the airports, adding a special touch to their journeys.

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