Sri Lankans struggle with basic needs and IMF measures even as the economy is recovering

Many Sri Lankans have yet to benefit from a new social welfare programme and are feeling the pinch despite easing inflation

Their plight comes as Sri Lanka is set to receive more bailout from the IMF and its creditors ahead of key elections

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A father and son share a meal at their shanty in Colombo, Sri Lanka, on October 5, 2022. Photo: AP

Published: 7:00pm, 25 Mar 2024Updated: 7:15pm, 25 Mar 2024

Sri Lankan Jeewani Bandara had moved to Kuwait to work as a domestic helper as her country’s economic situation deteriorated, but the 45-year-old returned home last year after an accident left her unemployed.

In a village near Talawa town in north-central Sri Lanka, Bandara currently survives with a minimal income she earns from selling groceries at a makeshift shop from her home. She has not yet been included under Aswesuma, a new social welfare programme introduced last year to provide better social security to Sri Lankans amid the economic crisis, although she applied for it months earlier.

Even as Sri Lanka is showing early signs of economic recovery and is set to receive a third tranche of International Monetary Fund financing worth US$337 million – subject to approval from the IMF executive board – many people like Bandara are struggling to survive the burden of harsh austerity measures imposed by the IMF’s bailout programme.

Although the IMF prescribes social safety nets to buffer the hardships of vulnerable communities, Aswesuma has excluded many Sri Lankans facing dire economic situations as the government works out tax reforms introduced by the programme.