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Govt spends billions of rupees for social welfare amidst rising poverty

By: Staff Writer

August 12, Colombo (LNW): The Government is spending a record Rs.206 billion on social welfare to assist the poor and vulnerable who are truly in need of assistance amidst the increasing poverty line.

The government implements a new welfare programme with defined costs, timelines and number of recipients under the provisions of Welfare Benefits Board Act.

This would be the largest expenditure on social welfare in post-independence Sri Lanka,” Cabinet Spokesman Minister Bandula Gunawardana said.

Sri Lanka’s official poverty line has witnessed a sharp threefold rise within the span of just over a decade, a recent report by the Department of Census and Statistics revealed.

The relevant report revealed that the poverty line has risen from Rs 5,223 in 2012 and 2013 to a whopping Rs 17,014 by January this year.

In 2016 the Poverty Line increased to Rs 6,117 from the Rs 5,223 recorded in 2013. Later, the poverty line increased to Rs 6,966 in 2019.

However, with the economic crisis in 2022 wreaking economic and social havoc, inflation skyrocketed pushing the poverty line to a twofold increase, reaching Rs 15,970, as per the report.

According to the report, Colombo reported the highest poverty line, ranking with Rs 17608 in May, dropping from Rs 18350 in January.

The Colombo district claimed the top spot in the district-wise comparison of the poverty lines, with a poverty line of Rs 17,608 being recorded in May this year down from a staggering Rs 18,350 recorded earlier in January.

The Gampaha district, neighbouring Colombo came in second with a poverty line of Rs 17,517, followed by Nuwara Eliya with Rs 17,169.

Other districts such as Monaragala, Kilinochchi and Hambantota have ranked lower with poverty lines of Rs 15,610, Rs 15773 and Rs 15,862 respectively.

The Official poverty line represents the minimum income required for an individual or household to cover essential living expenses such as food, shelter, and healthcare.

Unlike current welfare programmes, the proposed welfare programme is equipped with a mechanism to better target the most vulnerable groups in the society.

 Around 3.1 million low-income families are expected to receive welfare benefits under this programme.

Multilateral agencies such as the World Bank and the Asian Development Bank have come on board to provide funding for this programme.

The government last year started establishing a new information system of welfare applicants in order to identify those who truly deserve benefits.

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