• Another 400,000 Aswesuma families to exit scheme in 2027
• Govt. says phased reduction will continue under IMF-linked prog.
• Economist warns many vulnerable households yet to recover from crisis

The Government expects the gradual reduction of Aswesuma beneficiaries to continue beyond this year, with another 400,000 families set to be removed from the welfare program in 2027.The move is part of a phased plan linked to Sri Lanka’s economic recovery and commitments under the International Monetary Fund (IMF) program Economists, however, warn that many vulnerable households are yet to recover from the economic crisis.

Deputy Minister of Rural Development, Social Security, and Community Empowerment Wasantha Piyathissa told The Sunday Morning that while around 400,000 families were due to exit the program by the end of this year under the ongoing review, a similar reduction was planned annually, leaving only the extremely poor category eligible for benefits by the end of 2028.

However, he stated that the review process was still underway and that the final list of beneficiaries had not been confirmed yet.

“We are currently conducting a review. In about another week, we will know the exact situation. The agreement originally scheduled certain categories to be removed from Aswesuma earlier, but that has been slightly delayed. However, a significant group is scheduled to be removed by 31 December, as per the agreement,” he said.According to Piyathissa, the 400,000 families selected for removal belong to the highest-income category among the four groups currently receiving Aswesuma benefits.“We have categorized beneficiaries as extremely poor, poor, transitional, and another category. Out of these four groups, the approximately 400,000 families with the highest income levels are the ones being removed first,” he explained.

He said that beneficiary classifications were determined using 21 assessment criteria, including household income, and that the selected category would be removed from the programme as a single group.

Asked whether those removed from Aswesuma would be transferred to another welfare scheme, Piyathissa said there were no such plans.“They can reapply if they believe they are still entitled to Aswesuma. The reason some are being removed is because they are no longer eligible based on their income status,” he said.The Deputy Minister added that the Government expected the number of beneficiaries to continue declining over the coming years.

“Another 400,000 will be removed next year and every year thereafter. According to the IMF conditions, by the end of 2028, everyone except those in the extremely poor category must be removed,” he said.He maintained that the Government’s long-term objective was not simply to reduce welfare recipients but to improve livelihoods through poverty alleviation programs

“As a ministry and as a Government, our objective is to empower extremely poor and low-income families. We have already launched several programmes and believe that by 2030 we will be able to lift a significant number of people out of poverty,” he said.However, University of Peradeniya Department of Economics and Statistics Senior Professor Ananda Jayawickreme questioned whether the current economic climate justified such a significant reduction in welfare recipients, noting that many households continued to struggle despite improvements in macroeconomic indicators.“Since the 2022 economic crisis, conditions for many households have actually worsened. People are facing higher prices while incomes have remained stagnant, and some sources of income have disappeared altogether. Recent UNDP and World Bank reports also show that more than 33% of the population remains in poverty. That indicates people are not recovering,” he said.

Prof. Jayawickreme said that he supported removing beneficiaries who had never been eligible for the program but cautioned against reducing the welfare scheme solely to satisfy IMF targets.“If the Government can clearly identify those who were never eligible because their income levels were higher, then I fully support removing them and rationalizing the program  But if people are being removed simply to satisfy IMF conditions, then we are in trouble,” he said

He warned that asking affected families to reapply could leave genuinely vulnerable households without financial assistance for months while their applications were reassessed. “The only justification being given is that they can reapply. But reapplications take time, at least six months. How are those people expected to survive until then?” he asked.

Prof. Jayawickreme added that although Sri Lanka’s economy had stabilised since the height of the crisis, the benefits of that recovery had yet to reach many low-income households. Given those circumstances, he questioned whether this was the appropriate time to remove 400,000 families from the Aswesuma programme.

Launched in 2023, Aswesuma initially covered nearly 1.6 million beneficiary households across four income categories.