At the heart of the problem is the need for a unified and continuously maintained “social registry” – a database that records household information, monitors changes, and updates beneficiary status.

Sri Lanka’s major social assistance scheme for low-income households, Aswesuma, is facing critical scrutiny from the World Bank, which has flagged outdated and incomplete beneficiary data as a major hurdle to targeting the genuinely needy.

The Aswesuma scheme, introduced in 2023, aims to replace a decades-old programme with a new model that ostensibly uses multidimensional deprivation scores rather than just income thresholds. But at a meeting held on Monday with Parliament’s finance and social welfare committees, World Bank officials stressed that the mere entry of households into the national database does not guarantee benefit eligibility – accurate verification and regular updating are essential.

Flawed Data Threatens Fair Targeting

Despite a fresh start, the Aswesuma scheme’s data systems remain under-strength. Officials have noted that the transition from the old welfare model has not eliminated errors of inclusion (non-poor households receiving aid) or exclusion (poor households left out).

At the heart of the problem is the need for a unified and continuously maintained “social registry” – a database that records household information, monitors changes, and updates beneficiary status. According to the appraised World Bank project documents, eligibility is meant to be determined by a “Multi-Deprivation Score” (MDS) calculated from 22 indicators per household. However, critics say that implementation has lagged, especially in estate and remote sectors where the drop-in coverage has been sharpest.

World Bank representatives made clear: an inclusive list alone does not mean households qualify for Aswesuma. “Inclusion in the database must be followed by verification and analysis,” one senior economist said during the October session.

Technical Support on the Table

To remedy these gaps, the World Bank has offered Sri Lanka technical assistance for strengthening data collection, verification and monitoring systems. This assistance is aligned with a broader project – the Social Protection Project – that aims to enhance targeting, transparency and effectiveness of cash-transfer programmes in the country.

The key elements of the support envisaged include:

• Roll-out of a unified social registry accessible across divisional secretariats.
• Electronic payments tied to verified bank accounts for beneficiaries.
• A grievance redress mechanism to capture and act on selection or exclusion issues.

Sri Lanka’s officials told the meeting that training of divisional secretariat staff, improved outreach, and heightened coordination across levels of government were among the urgent tasks.

Why it Matters for Sri Lanka

For Sri Lanka, the stakes are high. The country’s poverty rate nearly doubled in recent years amid economic contraction, so getting welfare targeting right is critical.

For neighbouring India, the Sri Lanka case offers a cautionary tale: even well-intentioned social assistance schemes can falter if beneficiary data systems are weak. Transparent criteria, regular data updates, and digital registries are key to ensuring that benefits reach the truly vulnerable.

In the South Asia region, where multiple cash-transfer and food-security programmes operate, the message is clear: robust data governance matters almost as much as the quantum of funds allocated.

For Sri Lanka, the next six to twelve months will be crucial, say officials from the World Ban. The success of the new scheme hinges on whether the updated registry becomes fully operational, and whether verification catches up with ambition. With the World Bank watching and offering support, the government has the tools – but the real test will be in implementation.