Govt. secures $ 200 m World Bank funding for social security project implementation

The Cabinet of Ministers approved to enter into an agreement with the World Bank Group to secure a $ 200 million (around Rs. 66,000 million) loan Grant for the implementation of the ambitious social security project in the country.

“This is the highest amount Sri Lanka has ever received for social security project post-independence,” Cabinet Co-Spokesman and Minister Bandula Gunawardena said at the post-Cabinet meeting media briefing yesterday.

The proposal to this effect presented by President Ranil Wickremesinghe in his capacity as the Finance, Economic Stabilisation, and National Policies Minister was approved by the Cabinet of Ministers at its meeting on Monday.

During the meeting held on 8 May 2023, the Cabinet granted approval for engaging in discussions and negotiations with the World Bank. The objective was to lay the foundation for a project that aspires to improve income and livelihood opportunities for poverty-stricken and vulnerable groups while simultaneously strengthening the country›s social security system.

Responding to Sri Lanka›s proposal, the World Bank has committed to providing a substantial sum of $ 200 million, which will be distributed across three key components of the project. An overwhelming $ 185 million is allocated to support the ‘Aswesuma’ new welfare benefit payment scheme. This allocation is expected to streamline the welfare system, ensuring efficient and timely disbursement of financial aid to deserving beneficiaries. 

An additional $ 7 million has been designated to economically empower selected beneficiaries, via a pilot project. This initiative aims to equip recipients with sustainable livelihood opportunities, enabling them to secure a more stable and prosperous future for themselves and their families.

A further $ 8 million will be utilised to strengthen the overall project management and social security system. This allocation will focus on enhancing administrative efficiency, transparency, and accountability within the social security framework, ensuring optimal utilisation of resources to achieve the project’s maximum impact.

“The Government, led by President Wickremesinghe has expressed its gratitude for the World Bank’s support and has assured that the funds will be utilised effectively and transparently to benefit the target groups,” Gunawardena added.

With the implementation of the social security project, the Government aims to alleviate poverty and provide a robust safety net for vulnerable communities. “This landmark agreement sets a positive precedent for future development initiatives that prioritise the welfare of vulnerable segments of society. As the project takes shape, it holds the promise of inspiring further efforts to uplift communities and create a more equitable and prosperous country,” he added.