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, says the Institute of Policy Studies (IPS). Social protection is not [...]

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IPS examines effectiveness of Aswesuma poverty scheme

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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, says the Institute of Policy Studies (IPS).

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 per cent in 2022, from 11.3 per cent in 2019.

The Aswesuma 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, IPS said in a media release.

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