Business
Revamping welfare: Is Aswesuma the salvation Sri Lanka’s poor hoped for?
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/
Sri Lanka is not quite ready to join the Regional Comprehensive Economic Partnership (RCEP), since it is lacking sufficient development, Trade Ministry Secretary K.A. Vimalenthirarajah said.
‘At present the Trade Ministry is establishing Sri Lanka’s readiness to join RCEP, which consists of 15 countries, through several channels, Vimalenthirarajah said at a recent round table discussion titled, ‘Sri Lanka’s Pathway to RCEP and the Emerging Global Trading Order’, organized by the Pathfinder Foundation and held at the Colombo Club, Taj Samudra.
‘Sri Lanka is actively accelerating its compliance efforts to join the 15-nation RCEP having submitted its required accession questionnaire in early 2026, he explained.
Vimalenthirarajah added: ‘The Cabinet has established a high-level policy and working committee and also obtained some technical assistance from multilateral partners because complying with RCEP requirements is challenging. Subsequently, this body responded to the follow-up questions that came up and had discussions with RCEP representatives and it expects more follow-up questions with regard to Sri Lanka’s readiness to join RCEP.
‘Sri Lanka has also secured political and diplomatic support from current RCEP members, including Australia, New Zealand, and Indonesia, to facilitate its entry process.’
Meanwhile, state officials, including Industries and Entrepreneurship Development Deputy Minister Chathuranga Abeysinghe, are implementing key economic structural reforms, a new tariff policy, and transparent investment criteria required by the bloc. Because formal accession protocols for RCEP are still being finalized, Sri Lanka is also simultaneously negotiating bilateral trade and investment agreements with regional members to accelerate integration.
Abeysinghe, participating virtually in the event said that Sri Lanka cannot achieve sustained export growth and attract large-scale investment by relying solely on its domestic market. ‘As a small economy, the country’s future lies in deeper integration with regional and global value chains. RCEP connects 15 economies, including Japan, South Korea, Australia, New Zealand, China and ASEAN member states, collectively accounting for nearly 30% of global trade, he explained.
Abeysinghe added: ‘Access to such a market would create new opportunities for Sri Lankan businesses, particularly the country’s Small and Medium Enterprises (SMEs), which currently contribute only around 10 percent to national exports.
‘However, Sri Lanka is at least a decade behind in implementing many of the reforms required to fully participate in modern global trade. Recognizing this challenge, the government is now moving forward with several critical reforms: A new tariff policy to improve competitiveness and eliminate barriers to trade, transparent and predictable investment criteria, investment facilitation reforms to improve the ease of doing business, new legislation including the Public-Private Partnership (PPP) Act and SOE reforms to strengthen investor confidence and measures to improve investment protection and unlock new sources of capital, including venture capital and angel investment funds.
‘Sri Lanka’s exports currently stand at approximately US$ 17 billion and have grown only gradually over the years. Expanding market access through bilateral and multilateral agreements, while continuing domestic reforms, is essential if the country is to achieve its long-term economic ambitions.’
By Hiran H Senewiratne
In a landmark development for Sri Lanka’s organic spice sector, Pussalla Agri Ventures has been awarded both EU Organic and USDA Organic certifications for its premium Ceylon cinnamon products. The certifications were officially conferred at Control Union Sri Lanka, signaling a major milestone in the company’s strategic transformation toward fully certified organic operations.
The recognition strengthens Pussalla Agri Ventures’ position as an emerging exporter of certified organic products, with its flagship offering, organic Ceylon cinnamon (Cinnamomum verum, also known as Cinnamomum zeylanicum), cultivated in Sri Lanka’s traditional cinnamon-growing regions.
Notably, the dual certification opens doors to some of the world’s most lucrative and compliance-driven organic markets, including the European Union and the United States.
Pussalla Agri Ventures began its structured transition into organic cinnamon cultivation several years ago, building a fully integrated system covering cultivation, processing, and value addition. The company currently manages extensive cinnamon cultivation lands and operates under strict organic agricultural principles, ensuring compliance with global certification standards.
These certifications, issued through Control Union Sri Lanka, validate that the company’s farming and processing systems meet rigorous international requirements, including restrictions on synthetic chemicals, comprehensive traceability controls, and environmental sustainability practices. These certifications add to an existing portfolio that already includes SL GAP, Food GMP, and Cosmetic GMP certifications.
Company representatives described the achievement as a “milestone” in the Pussalla organic journey, one that paves the way for expanded access to premium export markets in Europe and the United States. According to them, the certifications are expected to enhance buyer confidence, particularly among health-conscious consumers and clean-label food brands.
Pussalla Agri Ventures emphasised that its organic cinnamon is sourced entirely from its own cultivated estates.
“This estate-to-exporter integration ensures full control over quality, traceability, and processing integrity. The company’s model allows cinnamon to be harvested, processed, and packed under continuously monitored conditions, maintaining strict alignment with international organic standards,” they noted.
Speaking further they said:
“Sri Lanka supplies the majority of the world’s True Ceylon Cinnamon, a spice prized for its delicate aroma, low coumarin levels, and reputed medicinal properties. The growing global demand for certified organic spices has created new opportunities for local producers who meet international compliance standards. Pussalla Agri Ventures’ certification achievement places it among a select group of Sri Lankan exporters adopting globally recognised organic systems, thereby enhancing the country’s reputation in high-value spice markets.”
“As organic food sales continue to rise in North America and Europe, certifications such as these are becoming essential rather than optional. For Pussalla Agri Ventures, the journey from conventional to certified organic is not merely a compliance exercise but a strategic repositioning aimed at long-term sustainability and premium pricing power.”
By Sanath Nanayakkare
The National Chamber of Commerce of Sri Lanka (NCCSL) will host a timely and insightful seminar titled “Data Protection & Privacy: Safeguarding Businesses in the Digital Era” on 18th June 2026, from 9.00 a.m. to 12.30 p.m., at the National Chamber of Commerce Auditorium, Colombo 10 with the objective of enhancing awareness among businesses on emerging cyber risks, data protection requirements, and digital security best practices.
As organizations increasingly rely on digital platforms, online transactions, cloud-based systems, and data-driven operations, protecting sensitive information and ensuring privacy compliance have become critical priorities for organizations of all sizes. The seminar aims to provide practical knowledge and strategic guidance to help businesses strengthen resilience against cyber threats while fostering trust and confidence among customers and stakeholders.
Interested parties are encouraged to register by contacting Udula – 0714034775/ 0114741788 | udula.nccsl@gmail.com or Nishanthi – 0762555707 | nishanthi@nationalchamber.lk
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