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Last Updated : 2024-05-17 07:48:00
By Shabiya Ali Ahlam
The leading economists of the Verite Research Sri Lanka Economic Policy Group (SLEPG) called on the relevant authorities to steer away from using Samurdhi as a determinant of eligibility for welfare benefits and instead, consider electricity consumption for targeting vulnerable groups, as it is a superior method.
The recommendation, put forward by Prof. Dileni Gunewardena, Prof. Mick Moore, Dr. Nishan de Mel and Prof. Shanta Devarajan, asserted that given the poor performance of the Samurdhi programme and a large number of citizens made vulnerable by the crisis, ensuring efficient targeting must be a key priority for any new social protection measures.
The latest policy note by the SLEPG recommended that a household electricity use threshold of 60kwh per month is utilised as a determinant of eligibility for welfare benefits.
This is one of several indicators previously identified by the Sri Lankan government, through a gazette notification in 2019, as the potential components of a proxy means test to identify the low-income families for welfare benefit payments.
About 99 percent of households in Sri Lanka are connected to the national grid and 48 percent of the population live in households that consume 60kWh or less of electricity in a month, the policy
note highlighted.
“Using this threshold to determine eligibility for cash transfers or other welfare benefits would ensure coverage of approximately 50 percent of the population,” the SLEPG said in its latest policy note.
The analysis by Verite Research shows that focusing on the poorest 20 percent of the population, the electricity use criterion includes a far greater proportion of the vulnerable population than the existing Samurdhi programme.
For the poorest 10 percent of the population, the most vulnerable group, targeting via the electricity use criterion captures 81 percent of households. The Samurdhi system only captures
40 percent.
More than twice as many households are captured through this improved targeting mechanism. This pattern is repeated at the second poorest decile
as well.
“Household electricity use is a much better indicator of poverty than being a Samurdhi recipient,” the SLEPG affirmed.
The policy group also pointed out three other reasons for the government to adopt household electricity consumption as an indicator of poverty. They are: (1) It can be implemented quickly, easily and cheaply as 99 percent of households are connected to the Ceylon Electricity Board (CEB) grid and their monthly electricity use is already tracked and available in digital form; (2) eligibility can be continuously adjusted to reflect changes in household circumstances and (3) politicisation and corruption can be largely eliminated.
According to the SLEPG, the efficiency of this mechanism could be further improved if the implementing agencies were able to identify and exclude from the cash transfer programme households that rely on solar power generation for household use and thereby consume less than 60kWh from the national grid.
The same applies to households that have two or more electricity meters on different floors.
“These two corrective measures would reduce the number of households among the richest 20 percent of households, who might otherwise wrongly receive cash transfers,” the SLEPG said.
Don Appuhami Thursday, 04 August 2022 08:08 AM
Excellent. This is a system changes that should be targeted, with the 2 improvement suggestions. Poor should be taken care of, but continuous checks should be implemented to eliminate the able from misusing and penalise.
Roisin Thursday, 04 August 2022 08:12 AM
These recommandations sound very useful and fair. Hopefully the government will listen to the experts for a change and hopefully it will be followed up.
Lanka Wijesinghe Thursday, 04 August 2022 08:17 AM
Dear Experts, What about the people who are rich enough to have off-grid solar systems installed? Such people have very low electricity bills. Why didn't any one of you catch this point.?
BuffaloaCitizen Thursday, 04 August 2022 09:24 AM
Such rich persons with Solar grids will anyway not care for Samurdhi benefits, goofy.
sam Thursday, 04 August 2022 08:28 AM
Good way to check eligibility. Also fixed telephones can assist eligibility.
BuffaloaCitizen Thursday, 04 August 2022 09:26 AM
Good proposal, but need to capture that 1% who are not in the Electricity Tariff List due to dire poverty or remoteness of location. True, Samurdhi is a farce and a Political Tool for vote bank.
Anne Karunaratne Thursday, 04 August 2022 09:27 AM
How can this be possible?? I personally know of an old lady who is living with her son and family but she totally depends on this samurdi. She doesn't have any other income and she depends on this samurdi money to buy her medicines. She doesn't pay an electricity bill!
Dileni Gunewardena Friday, 12 August 2022 05:18 PM
Samurdhi will remain. But many more people need support and this method is to target the most needy among them.
Mohamed Anver Thursday, 04 August 2022 09:50 AM
Its a good idea. But most people live in shanties do not have electricity or some shanties shares with two or more families. It should be addressed.
Prasath Thursday, 04 August 2022 11:36 AM
It's a good way, it has a point but all SL government knows why not to implement or even consider a good idea.
liyanage Thursday, 04 August 2022 01:17 PM
Something good finally
Nimal Sooryarachchi Thursday, 04 August 2022 09:14 PM
How about targeting those groups who can show zero tax returns on one side and groups that cannot show a monthly pay slip in the other end? Nutty professor
D. V. S de S Gamage Friday, 05 August 2022 12:02 PM
Why don’t we review Free education and Free health. These two are a big farce. Our current President and PM coming from the richest families got free education. Disadvantaged Sinhala, Tamil and Muslim families are marginalized due to a large proportion of free education expenditure going to Urban National Schools mostly for the rich and powerful. Benefits of national free health service goes to mostly the Rich and powerful. A national health insurance policy will be beneficial to improve the work ethics of our Government hospitals
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