• Govt says Treasury cannot release extra welfare funds 
• Minister claims poverty is falling despite World Bank warning
• Talks under way with IMF for greater concessions to vulnerable groups 

The Government is unable to allocate additional funds for welfare and social security programmes due to restrictions linked to the International Monetary Fund (IMF) reform programme, even as the World Bank warns that one in four Sri Lankans remains trapped below the poverty line.

The Rural Development, Social Security and Community Empowerment Ministry acknowledged that growing economic pressures have increased the need for support among vulnerable groups, but said current IMF conditions have limited the Government’s ability to release further funds from the General Treasury. 

However, the Ministry maintained that poverty levels are declining as a result of ongoing State-backed livelihood and employment initiatives and revealed that discussions are under way with the IMF to secure greater concessions for low-income families.

When contacted by The Daily Morning yesterday (03), Deputy Minister Wasantha Piyathissa said that even though the World Bank (WB) recently announced growing poverty within the country, the Ministry’s own data indicates that poverty is actually decreasing due to programmes launched by the Government to protect the poor. 

When queried as to whether the rising cost of living would necessitate further social security programmes, given the WB’s statement that one in four Sri Lankans is now below the poverty line, he said that under the current IMF conditions, it is not possible for the Government to make further financial allocations to support the economically lower strata of society. 

“But, we are holding discussions with the IMF to allow more concessions for the poor,” he said. He further noted that during the time of cyclone Ditwah, the Government had to allocate a large amount of money for those in need. 

“Moreover, the programmes to uphold their lives are currently ongoing across the country. In rural areas, self-industriousness is being encouraged, and job opportunities are being provided to most of the unemployed. Through these programmes, we have made the lives of the poor better. Hence, poverty in the country is decreasing,” he claimed.

However, the WB has repeatedly highlighted that around 24.5 per cent to 25 per cent of the population live below the poverty line.