IMF Reaffirms Social Welfare Safeguards in Sri Lanka Program

COLOMBO (News 1st); Concerns have surfaced in Sri Lanka over whether the government can expand social welfare under the ongoing IMF-supported reform program.

Responding to an inquiry posed by News 1st's Zulfick Farzan, the  IMF Mission Chief for Sri Lanka, Evan Papageorgiou, emphasized that protecting the poor and vulnerable remains a cornerstone of the Extended Fund Facility (EFF).

Papageorgiou clarified that the program includes a mandatory floor on social spending, requiring the government to allocate a minimum amount to shield low-income families. This benchmark is reviewed quarterly and, notably, Sri Lanka met the target at both end-December 2025 and end-March 2026.

He further highlighted that the IMF is encouraging authorities to strengthen targeting, coverage, and adequacy of social safety nets. A key step in this direction is the recertification of applicants under the Aswesuma welfare scheme, aimed at reducing errors and ensuring benefits reach those most in need.