The International Monetary Fund’s (IMF) programme is not tasked with alleviating the poor in Sri Lanka, as it is the responsibility of the government to make necessary policy and reform changes, Central Bank Governor Dr. Nandalal Weerasinghe told the media, yesterday (23).
“The main aim of the International Monetary Fund’s (IMF) programme is stability, economic stability, financial stability, and fiscal consolidation… We cannot expect that from the IMF,” the Governor said, responding to a question raised by the media on poverty alleviation, during the fourth monetary policy review for the year, held yesterday.
Sri Lanka’s main social welfare programme, the Aswesuma cash transfer programme has raised concerns about the efficacy of the programme in reducing poverty and alleviation.
In March, The Centre for Poverty Analysis (CEPA), a Colombo-based think-tank, informed the Committee of Public Finance (CoPF) that 26% of total recipients of the programme were not in poverty.
Aswesuma was introduced as a replacement for the previous welfare programme: Samurdhi. However its exclusionary rate was found to be higher than that of Samurdhi. CEPA also found that the exclusionary rate of Aswesuma (58%), was higher than that of Samurdhi (48%).
“Beyond economic growth, poverty reduction is something that can be achieved through the government and country’s policy,” Weerasinghe said. “That’s why the government has declared its programmes on poverty reduction and economic growth. There should be different programmes for these, and that’s why there are other (government) agencies.”
He explained that the IMF’s arrangement did include growth enhancing reforms to support the rate of economic growth, however poverty reduction was not one of the main aims.
“Actually, it’s something that we as a country have to do; unveiling reforms. Social safety nets was one of their main recommendations, to protect those who had fallen (into poverty), but to alleviate them, there are other programmes such as the World Bank, ADB and government initiatives that should be working towards addressing this,” Weerasinghe added.