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/
UN Global Compact Network Sri Lanka is introducing a transformative patron structure for its Working Groups, set to take effect in 2025. This initiative strengthens the Network’s commitment to advancing corporate sustainability by amplifying the leadership of select companies within their respective issue areas. The Memoranda of Understanding (MoUs) were signed on March 20, 2025, at the 80 Club, in the presence of the Network’s Board Members.
Network Sri Lanka’s Working Groups have long provided a platform for businesses to exchange knowledge and drive industry-wide progress on sustainability. With this new structure, leading companies will take on an enhanced role in guiding participants within their Working Groups, offering mentorship, strategic insights, and best practices to drive collective action.
As Patrons, these companies will host events, provide guidance, and shape the direction of their respective Working Groups, ensuring that discussions translate into tangible, scalable solutions aligned with national and global sustainability priorities.
Meet the Patrons and Their Areas of Leadership
MAS Holdings (Pvt) Ltd – Gender & Diversity
MAS Holdings will lead the Gender & Diversity Working Group, championing inclusive business practices, gender equality, and women’s leadership in corporate Sri Lanka.
A. Baur & Co (Pvt) Ltd – Business & Human Rights
A. Baur & Co will lead efforts within the Business & Human Rights Working Group, championing ethical business practices, human rights protections, and responsible corporate conduct.
Talawakelle Tea Estates PLC – Climate Emergency Task Force
Talawakelle Tea Estates will drive action within the Climate Emergency Task Force, supporting businesses in climate change mitigation, adaptation and resilience strategies.
Kelani Valley Plantations PLC – Water & Ocean Stewardship
Kelani Valley Plantations will support the Water & Ocean Stewardship Working Group, focusing on sustainable water management and conservation practices.
Dilmah Ceylon Tea Company PLC – Water & Ocean Stewardship & Sustainable Supply Chain & SME
Dilmah will take on a dual Patron role, sharing its expertise in sustainable supply chains and water stewardship, particularly in global supply chain sustainability and marine biodiversity conservation efforts.
Teejay Lanka PLC – Sustainable Supply Chain & SME
Teejay Lanka will support the Sustainable Supply Chain Working Group, bringing its expertise in ethical sourcing, circularity, and sustainable manufacturing.
“As a steward of A. Baur & Co. (Pvt.) Ltd.’s 127-year legacy, built on ethical governance and the unwavering dedication of our people. Ensuring a living wage is not just a moral imperative, it’s also a smart business strategy. When the employees have the financial security they need, they’re more productive, engaged, and loyal. We recognize that this transformative change cannot be achieved in isolation. By working together with other stakeholders, we can create a ripple effect that benefits everyone. Through our commitment to advocating for a living wage, we aim to inspire broader private sector participation, facilitate the exchange of best practices, and strengthen the ecosystem for equitable economic growth in Sri Lanka.” – Rolf Blaser, Managing Director / CEO, A. Baur & Co. (Pvt.) Ltd.
Network Sri Lanka is the Country Network of the UN Global Compact, mobilizing businesses to integrate sustainability into their core strategies. Through its Working Groups, the Network facilitates peer learning, collaboration, and collective action to drive meaningful change across industries.
Assetline Finance Limited (AFL), the flagship company of the Financial Services Cluster of David Pieris Holdings, has received an upgraded entity credit rating from Lanka Rating Agency (LRA) to A with a Positive Outlook, up from its previous rating of A- with a Stable Outlook. This upgrade, along with the improved outlook, reflects AFL’s strong financial fundamentals, sustainable growth trajectory, and the increasing confidence of the market in its long-term stability and performance.
This new rating reflects the Company’s unwavering commitment to prudent financial stewardship, a strong focus on sound risk management practices, and a strategic approach to value creation. During the year, the Company demonstrated steady growth in its asset base, surpassing LKR 50 billion and reinforcing its strong position within the industry. This growth was driven by strategic investments and a disciplined approach to capital management, which has consistently reinforced the Company’s liquidity and financial position. It clearly demonstrates AFL’s operational efficiency and its ability to generate long-term shareholder value.
Commenting on the upgraded rating, Ashan Nissanka, Director & CEO of AFL, stated: “Our favourable rating further positions us to unlock greater opportunities, drive progress, and strengthen stakeholder trust. It is not just a reflection of where we stand today but symbolises our path ahead towards a stronger future.”
Furthermore, the Company maintained a strong and well-managed capital structure, with a capital adequacy ratio significantly above the minimum regulatory requirement. It also successfully secured international funding from the Japan-based ASEAN Women Empowerment Fund (JAWEF), managed by BlueOrchard Finance Ltd., a globally recognized impact investment manager. Securing this funding affirms the Company’s financial resilience and its ongoing commitment to empowering women entrepreneurs. Through its Liyadiriya initiative, the Company continues to improve financial accessibility for rural women, contributing to inclusive economic development.
The Company also expanded its geographical footprint by opening four new branches, increasing its total branch network to 59 and establishing a nationwide presence. This expansion was aimed at broadening the customer base, particularly in underserved areas, to promote financial inclusivity. It aligns with the Company’s strategic intent to support women entrepreneurs across Sri Lanka. Additionally, the Company’s lending focus remains aligned with national priorities, particularly in the renewable energy and SME sectors, which are seen as key drivers of long-term development.
Sampath Bank recently formalised a strategic partnership with the Chamber of Young Lankan Entrepreneurs (COYLE) by signing a Memorandum of Understanding (MOU) at its Head Office. This partnership highlights Sampath Bank’s ongoing commitment to promoting innovation, driving business growth, and empowering Sri Lanka’s entrepreneurial ecosystem.
Through this collaboration, Sampath Bank will serve as the official banking partner for the COYLE Awards and the Young Lankan Program, two flagship initiatives that recognise business excellence and nurture emerging leaders. Supporting these initiatives allows the Bank to create a strong pipeline for SME engagement, provide access to tailored financial solutions, and build meaningful relationships with the country’s leading entrepreneurs.
Tharaka Ranwala, Senior Deputy General Manager – Marketing, Customer Care, and Card Centre, Sampath Bank (2nd from L), exchanged the MOU with Suren Chandraratna, Senior Vice Chairman, COYLE (2nd from R), in the presence of Anjali Goonetilake, Senior Manager – Marketing, Sampath Bank (1st from L), and Jayamal Gunaratne, Project Chairman, COYLE (1st from R).
The partnership further positions Sampath Bank at the forefront of SME development in Sri Lanka, distinguishing it as a long-term enabler of entrepreneurial success and a key driver of sustainable economic progress.
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