A Welfare Benefit Payments Scheme (WBPS) aims to alleviate poverty and enhance social equity by providing financial assistance for basic needs to those in need. The Government’s ‘Aswesuma,’ which is the new WBPS, is being implemented with the support of the World Bank and managed by the Welfare Benefits Board (WBB). 

However, the efficiency of this welfare programme is debatable. It categorises beneficiaries into four groups – transitional, vulnerable, poor, and severely poor – and aims to provide cash transfers to about 35% of the population, along with allowances for differently-abled and elderly persons and kidney patients.

Speaking to The Sunday Morning, Welfare Benefits Board member K.H. Jessi Mueller said that 17,000 new applications had come in so far online for phase II of ‘Aswesuma’. 

“We are currently serving approximately 1.4 million people. We aim to reach 2.4 million individuals by the end of 2024. I received information yesterday that in Nuwara Eliya around 90% of new applications have been completed, while progress is ongoing in other areas,” she said.

Speaking on ‘Aswesuma’ programme motives, she said: “What we are doing in ‘Aswesuma’ pertains to the poorest, specifically those in the extremely poor category, who have been severely affected by the consequences of the pandemic, leading to job losses and the closure of businesses. 

“Consequently, they find themselves in a situation where they lack any income and are uncertain about where to seek assistance to sustain themselves and their families. Currently, ‘Aswesuma’ has identified and classified four distinct categories of individuals. Along with these categories, specific assistance is provided to sick patients, with kidney patients receiving Rs. 7,500, the elderly receiving Rs. 5,000, and the disabled also receiving Rs. 5,000,” she explained.

According to independent think tank Advocata, following the worst economic crisis in Sri Lanka’s history and high inflation, about four million people have fallen below the poverty line, leaving seven million people in poverty. It also says that the current ‘Aswesuma’ programme is making some progress with World Bank assistance.

Initially scheduled for disbursement in July 2023, the ‘Aswesuma’ benefits finally commenced its distribution in August 2023. Although reports from last year about the scheme highlight shortfalls such as lack of awareness among the targeted population, a flawed data collection method, mobile app failures, issues with enumerators, an inaccurate data selection process, and exclusion of the vulnerable, the process has been taken forward and applications for phase II of ‘Aswesuma’ are being accepted from 15 February to 15 March.

The need for self-reliance 

 According to the Institute of Policy Studies of Sri Lanka (IPS), ‘Aswesuma’ needs to establish a system or method to assist families in becoming self-reliant and gradually reduce their dependence on State assistance. 

“We are ensuring that people in need have access to meals; we are providing sustenance so they don’t go hungry. We take care of them by allocating money for their livelihoods based on the work they do. Following our support, we oversee them and transition them to ‘Samurdhi,’ where they can receive vocational training and assistance in securing job opportunities. This empowers them to be self-sufficient. Our goal is to uplift them from the severely poor category, providing them with a chance to stand on their own feet and facilitate their integration into societal activities,” Mueller noted.

The Government is also committed to taking care of kidney patients, disabled individuals, and the elderly throughout their lifetime, she added. 

“We have observed that since the inception of this programme, which bridges the welfare system directly with the recipients, the money is transferred directly to their accounts, benefiting them without intermediaries. This streamlined approach is evident in the specific benefits and we have witnessed individuals successfully establishing themselves. Consequently, awareness is spreading not only in villages but also in urban areas. Overall, the programme is functioning well and contributing to a healthier community,” Mueller asserted.

Meanwhile Treasury Deputy Secretary R.M.P. Rathnayake told The Sunday Morning that there were impacts on vulnerable communities as a result of the pandemic and the economic crisis and therefore, the Government was responsible for supporting vulnerable communities, which was also why schemes such as ‘Janasaviya’ and ‘Samurdhi’ existed in the past. 

“However, we realised that those schemes were not properly targeted and there was no effective mechanism, sometimes leading to their utilisation as political instruments. We are trying to achieve a centralised database targeting genuinely needy people – those below the poverty level and from vulnerable communities – and including specific categories such as the elderly and people with disabilities. By targeting welfare benefit programmes towards them, we can establish a transparent system and provide much more substantial benefits with a real database based on specific selection criteria,” Rathnayake noted.

He also pointed out that the total allocation for ‘Aswesuma’ for 2024 was about Rs. 204 billion. In addition, he said that depending on the budgetary resources available, it would be possible to expand the categories in the future.

A successful scheme?

When The Sunday Morning spoke to economist Rehana Thowfeek, she noted that it was too soon to make any pronouncements on the success of ‘Aswesuma,’ but noted that it was a good initiative and in the right direction. “There have been some bumps in the road, but we must remember it’s an iterative process so it will keep improving,” she added.

“At present, it is still in the process of identifying all the necessary beneficiaries, so in the interim there may be those who are in need of social assistance but are unable to access it. In a time of crisis such as what we are facing, this can be quite significant,” Thowfeek noted.

“‘Aswesuma’ has corrected many shortfalls of the previous programmes and mainly it has removed the political interference in beneficiary selection,” she said, adding that it was important to depoliticise social welfare so that it could not be used as a tool during elections. 

“Additionally, it is attempting to fix – and has made progress in fixing – exclusion and inclusion errors, which involves removing individuals who should not be receiving social assistance and adding those who should be included,” Thowfeek further said.

‘Aswesuma,’ unlike ‘Samurdhi,’ has strict entry and exit criteria and it is not an indefinite payment – after a certain period there will be a review to ascertain whether a person still requires social assistance, Thowfeek noted. She said that this meant resources could be better allocated and it also did not encourage people to stay on in the programme forever. 

“I believe it has helped people and will continue to do so. There is an issue of whether the sum provided is adequate, given the cost of living. This has to be looked at considering the fiscal space. I do not think it can eradicate poverty, but it can help people,” Thowfeek concluded.

‘Aswesuma’ benefits will be disbursed through direct deposits to the bank accounts of beneficiaries. This method exclusively involves banks that operate under the regulatory framework of the Central Bank of Sri Lanka (CBSL). The rationale behind adopting this approach is to minimise third-party involvement in the disbursement process. 

This is in contrast to the previous practice observed in ‘Samurdhi,’ where cash transfers were facilitated through the Samurdhi Department. This shift in methodology not only enhances the efficiency and security of benefit distribution but also aligns with the objective of streamlining the process through established financial institutions regulated by the CBSL.