Special cash allowance for 3.34mn low-income households from May to July

• Funds to tune of US $ 167mn to be provided by World Bank
• Minimum Samurdhi payment to go up to Rs.5,000 and maximum to Rs.7,500
• 730,000 new families, who have applied for Samurdhi, also to be given Rs.5,000 each

The World Bank (WB) has agreed to provide US $ 167 million (Rs.13.36 billion) in financial assistance to extend a special cash allowance for identified 3.34 million low-income families in the country, from May to July.
Sri Lanka has only little over five million households and 3.34 million households account for a shocking 66 percent.

Trade and Samurdhi Development Minister Shehan Semasinghe on Monday sought the approval of the Cabinet of Ministers to move ahead with the special cash allowance to provide the relevant relief to the identified families for a three-month period.

The WB under Contingent Emergency Response Component (CERC) will fund the special cash allowance, according to the Government Information Department.

Under the initiative, Semasinghe noted that cash allowances would be increased for low-income families, who are currently entitled to cash allowances under Samurdhi, elderly, kidney and disability categories. 

In addition, low-income families, who are currently in the waiting list for social safety programmes, will also become entitled to the special cash allowance, including 730,000 new families, who have applied for Samurdhi.
“Low-income families entitled to Samurdhi, elderly, kidney and disability allowances have been severely affected by the current economic crisis in the country. The government has identified the need for immediate relief to those families and their families on the waiting list,” the Government Information Department said. 

Accordingly, the Rs.2,000 monthly cash allowances provided to senior citizens will be increased to Rs.5,000, while the monthly cash allowances given to persons with disabilities and kidney patients will be increased to Rs.7,500.
The minimum cash allowances given to Samurdhi beneficiaries will be increased to Rs.5,000, from the current Rs.3,100, while the maximum cash allowance will be increased from Rs.4,500 to Rs.7,500 during the three-month period. 

Along with it, 730,000 new families are also to be brought into the programme, who will be entitled for a monthly cash allowance of Rs.5,000 during the period.

The three-month programme is expected to be fully funded by the WB and in addition, the WB has also agreed to provide technical assistance for the programme.

With the forex crisis and floating of the rupee, the prices of essential goods, including food items, have risen to unbearable levels.