Sri Lanka’s social protection framework needs to move from being one of “transfer dependency” to “resilience building”, with protections being a tool for poverty alleviation, rather than a fix, IPS Researcher Pulasthi Amarasinghe told The Daily Morning Business.
“The goal should be to shift from “transfer dependency” to “resilience-building,” with social protection acting as a springboard, not a trap, and without complementary services, even well-designed bonuses may fall short in supporting true resilience,” Amarasinghe said, in response to a question posed on the need to explore social welfare programme exits, through bonuses.
Amarasinghe noted that Sri Lanka’s welfare programmes have historically lacked a structured pathway out of dependency on assistance, with its previous cash transfer programmes further falling short on setting objective criteria for selection, in addition to incentives to exit.
“To reduce dependency without excluding the vulnerable, Sri Lanka must adopt a graduation-oriented model that combines cash transfers with support services that enhance their capacity to become financially independent, such as vocational training, job matching, access to childcare, and financial literacy,” Amarasinghe said.
He added: “Systemically, this requires periodic reassessment of needs, real-time household data, and investments in frontline service delivery, preferably through an integrated digital system in the long run. Transitioning from a passive subsidy to an active, adaptive social protection framework will help ensure that those who can exit are supported to do so. At the same time, households facing chronic or structural disadvantages continue to receive the necessary assistance.”
Referring to Sri Lanka’s key targeted cash-transfer social welfare programme, Aswesuma, Amarasinghe said: “Aswesuma is designed as a temporary cash transfer programme as part of a larger effort to establish a social registry. This has laid a solid foundation for developing a more targeted and transparent social registry system, albeit with areas to improve in the future.”
The Sri Lankan government has allocated Rs. 232.5 billion for the ‘Aswesuma’ welfare programme for the 2025 fiscal year, a significant increase compared to previous years, where allocations were in the range of Rs. 60-65 billion.