1. Social Safety Nets – Issues and Future Strategies P. Sumanapala Director Department of National Planning Ministry of Finance and Planning

2. Social Sector at Glance 19902002 1. Human Development Index 0.670.75 2. Poverty ratio 26%23% 3. Poverty gap ratio 5.65.1 4. Gini Coefficient 0.450.46 5. Unemployment rate 14%8% 6. Net enrolment ratio in primary school 92%96% 7. Literacy rate (15.24) 93%96% 8. Mortality rate (under 5) 2219 9. Share of women in wage employment (non agri) 2931 10. Percentage of senior citizens -10% 11. Percentage of differently able persons -2%

3. Major Safety Net Programmes Income transfers under the Samurdhi Programme Income transfers under the Samurdhi Programme Micro Credit Schemes implemented by various public institutions/ banks/ NGOs Micro Credit Schemes implemented by various public institutions/ banks/ NGOs Infrastructure development at village level (eg. Gama Neguma) Infrastructure development at village level (eg. Gama Neguma) Free distribution of school uniforms and text books Free distribution of school uniforms and text books Nutrition packages to pregnant and lactating mothers Nutrition packages to pregnant and lactating mothers Flood and drought relief programmes Flood and drought relief programmes Public assistance to vulnerable groups (eg. Indigent elders) Public assistance to vulnerable groups (eg. Indigent elders) Payments to disable soldiers Payments to disable soldiers Assistance to conflict affected people/ IDPs Assistance to conflict affected people/ IDPs Free treatment at Government hospitals Free treatment at Government hospitals

4. Overlapping programmes by various Ministries/ Institutions/ Agencies/ NGOs Overlapping programmes by various Ministries/ Institutions/ Agencies/ NGOs Poor targeting in the Samurdhi programme Poor targeting in the Samurdhi programme Inadequacy of income transfers Inadequacy of income transfers Negligence of non-income aspects Negligence of non-income aspects Limited payments for disable people Limited payments for disable people Insufficient quantity of dry ration to IDPs Insufficient quantity of dry ration to IDPs Major Shortcomings of the Safety Nets

5. Proposed Policy Options Re-vamping cash transfer programme Re-vamping cash transfer programme - Suitable entry mechanism - Suitable exit mechanism Helping to the poor escape poverty Helping to the poor escape poverty - Income generating projects - Skills development Addressing individual vulnerabilities Addressing individual vulnerabilities - Make people aware of benefits of preventing disability - Help reducing stigma about the disabled - Develop measures to improve safety - Promote disable people to participate fully in the socio-economic life - Ensure better coverage of the disabled in safety net programmes Developing Comprehensive Package of Intervention for Disaster Relief Developing Comprehensive Package of Intervention for Disaster Relief - Cash grants - Livelihood programme - Work fare - Social welfare - Social integration

6. Key Strategies of the Government Vision : Creation of a safe, free and caring society for all through protection and empowerment of the most vulnerable and disadvantaged groups and adoption of appropriate risk minimizing mechanisms. Policy Direction : Protecting the rights of disadvantaged groups and upgrading their skills to make them active partners of economic development.

7. Key Elements of the New Strategy : Poverty Stricken Community Objective: Improved capacity to cope with risks and shocks Gradual reduction of Samurdhi cash beneficiaries and directing them to engage in gainful economic activities. Gradual reduction of Samurdhi cash beneficiaries and directing them to engage in gainful economic activities. Diverting more resources from recurrent items to capital items (eg. micro credit, village infrastructure, skills development, access to market). Diverting more resources from recurrent items to capital items (eg. micro credit, village infrastructure, skills development, access to market). Strengthening social insurance and other safety measures for Samurdhi beneficiaries. (eg. Payments in the event of death in the family, scholarship allowance for children etc.) Strengthening social insurance and other safety measures for Samurdhi beneficiaries. (eg. Payments in the event of death in the family, scholarship allowance for children etc.)

8. Differently Able Community Objective : Better social integration and enhanced employment opportunities Equal education– Enrolment of differently able children to normal schools Equal education– Enrolment of differently able children to normal schools Shelter and vocational training– Rekawarana Niwasa Homes for the disabled Shelter and vocational training– Rekawarana Niwasa Homes for the disabled Financial assistance– Monthly grant of Rs. 3,000 Financial assistance– Monthly grant of Rs. 3,000 Employment opportunities– Reservation of at least 3% of employment opportunities in work places Employment opportunities– Reservation of at least 3% of employment opportunities in work places Social equity –Enacting legislation to protect the social rights Social equity –Enacting legislation to protect the social rights

9. Children Objective : Ensuring universal access to the services that children require for their full and free development Improving health and nutrition – Provide monthly allowance to purchase milk Improving health and nutrition – Provide monthly allowance to purchase milk Safe homes for orphans– Improvement of children’s homes with adequate financial assistance Safe homes for orphans– Improvement of children’s homes with adequate financial assistance Quality pre-school education– Improvement of standards of pre- schools/ day care centres Quality pre-school education– Improvement of standards of pre- schools/ day care centres

10. Senior Citizens Objective : Improved quality of life with social dignity and independence Improving living standards– Upgrading homes for aged Improving living standards– Upgrading homes for aged Ensuring adequate income– Increase the pensions/ EPF benefits Ensuring adequate income– Increase the pensions/ EPF benefits Providing in-kind assistance– Provision of spectacles at free of charge Providing in-kind assistance– Provision of spectacles at free of charge Free railway warrants Free railway warrants Subsidized transport Subsidized transport

11. Destitute Women Objective : Empowered women in a discrimination free society Undertaking in-kind transfer – Nutrition package for pregnant programmesand lactating mothers Undertaking in-kind transfer – Nutrition package for pregnant programmesand lactating mothers Promoting gainful employment – Financial assistance through Lanka Putra Bank Promoting gainful employment – Financial assistance through Lanka Putra Bank Providing legal and counseling – Assistance to affected women assistance(eg. tortured, sexually abused) Providing legal and counseling – Assistance to affected women assistance(eg. tortured, sexually abused) Enacting new laws – Removing inequalities relating to salaries, property rights, etc. Enacting new laws – Removing inequalities relating to salaries, property rights, etc. Enacting Women’s Charter of Rights Fair political representation – Increased representation at provincial and local level Fair political representation – Increased representation at provincial and local level

12. Thank You