(Note: This was originally published in the Daily FT) The Director General of the Department of Samurdhi released a circular on 29 August stating that monthly cash transfers to senior citizens, persons with disabilities (PWDs), and kidney patients must be administered through Samurdhi banks from September 2022. In practice, this will occur from October. This disbursement mechanism deviates significantly from that used earlier, where each of these schemes had different collection points. Samurdhi banks were used exclusively as distribution points for the Samurdhi monthly cash transfers. Senior citizens’ allowances, PWD benefits and kidney patients’ allowances were disbursed via post offices, State banks and divisional secretariats, respectively (Table 1).
The fragmented social protection system in Sri Lanka has been in need of reform for many years. There is a need to reform many areas, including targeting and the delivery of benefits — areas we have, and continue to, stress the importance of. The specific reforms that we prioritise may differ in the short and long term. The current economic crisis (which has thrown millions into poverty) has highlighted the gaps in the system. In this light, ensuring that the cash transfers are adequate to meet the needs of individuals and all those who need assistance are covered by the programme are key.
I was invited to speak on Social Safety Nets in Sri Lanka on ‘The People’s Platform’ a 45 minute live TV programme on NewsFirst. I drew on LIRNEasia’s research on the area to highlight problems in targeting the poor and the possibility of using bank accounts and mobile technology to deliver benefits to the poor.