"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.
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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