Sri Lanka poverty subsidy helping not only the poor: CBSL

Apr 12, 2010 (LBO) – A Sri Lankan poverty alleviation subsidy programme provides benefits to well over a quarter of the people, an unrealistically high number, and not only the poor, the Central Bank has said.

“The potential for linking some of these food programmes with community-driven development programmes needs to be explored as malnutrition in the country is challenging the sustainability of the level of social development.

” Under the ‘Samurdhi’ subsidy programme, benefits are provided to about 32 percent of the population of 20 million people.

“Compared to the Poverty Head Count Index which was 15.

2 percent, the percentage of Samurdhi recipients at 32 percent is substantially high,” the Central Bank said in its annual report.

“This highlights the ability to further streamline the Samurdhi programme to a more realistic one, while providing more benefits to the needy people.

”

The bank said the Samurdhi subsidy scheme needs better targeting.

A total of 1.6 million families benefitted from the Samurdhi subsidy programme in 2009 at a total cost of 9,298 million rupees.

The Central Bank said the existing food rations programmes need to be reviewed to determine better geographic