ADB-backed $ 100 m program to strengthen social protection and livelihoods

Vijitha Herath 

• 30,000 Aswesuma families to receive entrepreneurship training and start-up grants
• Five adult day-care centres planned under the social care component
• Program to strengthen social protection data, case management and cybersecurity
• Six districts to benefit from the five-year initiative from November 2026

The Cabinet of Ministers has approved the implementation of a $ 100 million concessional loan program supported by the Asian Development Bank (ADB) to strengthen social protection, livelihoods and inclusive economic opportunities for vulnerable communities.

The Macro-Recovery Sector Development Program to Promote Resilience and Inclusive Economic Opportunities is scheduled to be implemented from November 2026 to October 2031 in Kegalle, Matale, Mullaitivu, Kilinochchi, Batticaloa and Nuwara Eliya.

“The program has been designed against the backdrop of multiple vulnerabilities affecting an estimated 56% of Sri Lanka’s population, with women, youth, older persons, people with disabilities and rural and estate communities identified as particularly exposed,” Minister Vijitha Herath said announcing the decision at the weekly post-Cabinet meeting media briefing yesterday.

Climate change is expected to further intensify these vulnerabilities, increasing the need for stronger social protection mechanisms, livelihood opportunities and care services.

“We expect the program to strengthen the resilience of vulnerable households, while expanding access to livelihood opportunities and improving the delivery of social protection and care services in the six target districts,” Herath added.

He said the program will be implemented through two broad components covering policy and investment, with interventions focused on livelihoods, social care and social protection systems.

“Under the livelihood component, 30,000 selected Aswesuma beneficiary families in the six districts will receive formal livelihood development and entrepreneurship training. Those completing the training will have access to Entrepreneurship Development Council support, market and financial facilities and an initial capital grant of Rs. 200,000, to be provided in two instalments,” he added.

A second area of intervention will focus on strengthening social care infrastructure, services and standards, particularly for older persons.

The program will introduce regulatory systems and service standards aimed at improving the quality and equity of social care services, while developing a trained care workforce.

It will also establish five adult day-care centres, with the objective of developing a more sustainable and quality-oriented long-term care system.

The third area will focus on strengthening the country’s social protection framework and institutional capacity.

“This will include developing a Social Protection Action Plan and a Case Management Framework based on the National Social Protection Policy and related strategies,” he said.

In addition, the program will support the establishment of digital and data systems, cybersecurity and data protection standards, as well as measures to improve institutional capacity for integrated and coordinated service delivery.

He said a monitoring, evaluation and learning system will also be established to assess the implementation and effectiveness of interventions.

The proposal to this effect was submitted by Rural Development, Social Security and Community Empowerment Minister.