Aswesuma Cuts Poverty but Risks Male Workforce Drop
- CNL Reporter
- June 20, 2025
- Political
- ‘Aswesuma
- 0 Comments
Sri Lanka’s revamped Aswesuma welfare scheme has improved poverty targeting but may reduce male labour force participation, raising concerns about long-term fiscal sustainability, according to a new study by the Institute of Policy Studies (IPS).
The study, Recalibrating Aswesuma, found that male labour force participation could decline by 5.4 percentage points under the revised scheme, up from 4.2 points previously. While food insecurity has decreased, IPS warns the cash transfers may discourage work, especially among low-wage informal sector workers.
Female participation is projected to fall modestly by 1.3 points. IPS emphasized the need for complementary activation policies to encourage employment, skills development, and labour market reintegration.
Initially offering Rs. 2,500–15,000, Aswesuma was expanded in April, with Cabinet approving new transfers ranging from Rs. 5,000 to 17,500 per household, pending Parliamentary approval. Strengthening social protection remains crucial as Sri Lanka recovers from its economic crisis.
