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Targeted relief for poor

Targeted relief for poor

19 Jan 2024

 

With prices of some vegetables skyrocketing, concerns about short-term food insecurity and long-term nutrition of children continues despite accolades about Sri Lanka’s “progress” which multinational financial institutes have trumpeted earlier this month. 

Basic food items that were once considered staples, are now scarcely affordable. Vegetables such as big onions and carrots which have long been staples, are today out of reach of many. Dairy and meat products have become luxury goods, and eggs continue to be scarce and challenging to purchase. According to the World Food Programme (WFP), 6.3 million people – over 30% of Sri Lanka’s population – are “food insecure” and require humanitarian assistance following the economic crisis. Of these, around 5.3 million people are either reducing meals or skipping meals, and at least 65,600 people are severely food insecure. The WFP states that even before the Covid-19 pandemic, 70% of Sri Lanka’s children were stunted and around 15% were wasted. A study conducted by Save the Children in June 2022 documented that 59% of families reported not being able to meet all their complete food needs.

According to the Central Bank of Sri Lanka (CBSL) statistics, headline inflation, as measured by the Y-o-Y change in the Colombo Consumer Price Index, increased to 4% in December 2023 from 3.4% in November 2023. This increase in headline inflation is mostly in line with the projections envisaged by the Central Bank in November 2023. After five months of continuous deflation, the Food category recorded inflation (Y-o-Y) of 0.3% in December 2023 from 3.6% deflation (Y-o-Y) recorded in November 2023. Meanwhile, Non-Food inflation (Y-o-Y) declined to 5.8% in December 2023 from 6.8% in November 2023.

Meanwhile, according to the National Water Supply and Drainage Board (NWSDB), an estimated three million Sri Lankans, or 80,000 families have had their pipe-born water supply disconnected due to inability to settle arrears. The NWSDB yesterday (18) said that a total of 80,970 water supply connections were disconnected in the past year (2023), among them 63,150 domestic consumers and 17,820 non-domestic consumers. The Government last year, within a short span of time, moved to “cost reflect” utility bills, causing long dormant electricity, water, fuel and LP Gas prices to soar. While, writing historic wrongs of politicising State-owned Enterprises and utility / fuel tariffs need to be put right, the speed which the bankrupt Government of Sri Lanka moved to do so, left many no longer able to afford such services.  

Amidst cost-of-living uncertainties, and parents struggling to fund their children’s education following recent tax revisions, one ray of hope for those below the poverty line is the move to strengthen the social safety net–Aswasuma, which is being revised. According to the Treasury, following a review and objections process, the Aswesuma welfare benefits programme had decided to include another 300,000 families as beneficiaries. This is after the programme received nearly 640,000 appeals and objections, which was reviewed to decide who “fits” the eligibility criteria.

State Minister of Finance Shehan Semasinghe yesterday (18) stated with the revised data, the Aswesuma programme now supports more than 1.7 million families. While the move, if carried out with due diligence is commendable, can be improved. Lack of food and water, regardless of modern necessities that electrify powers, are fundamental to human existence.  As such, the Government should provide those beneficiaries of the Aswesuma programme relief in terms of food rations, especially for families with children to ensure their nutrition. Further, a concessional scheme to allow Aswasuma beneficiaries whose water supply has been halted due to unpaid arrears. 

If the Government is serious about making structural changes work and ensure long-term fiscal discipline, the most vulnerable need to be protected. Sri Lanka can ill afford instability and political turmoil in its recovery stage. And keeping those behind the poverty line in order, is better achieved through assistance, awareness building and relief, rather than through baton strikes and tear gas.  Surely, if the President / Minister of Finance and National Policies can find millions to spend on pomp and pageantry at the upcoming Independence day celebrations, he can surely provide relief for those who need it the most during these austere times.   


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