ADB approves $100m to strengthen social protection in Lanka

The Asian Development Bank (ADB) has approved $100 million in financing to strengthen social protection, economic inclusion and resilience among poor and vulnerable communities in Sri Lanka.

The financing comprises a $50 million policy-based loan and a $50 million project loan under the Promoting Resilience and Opportunity for Inclusive Recovery Sector Development Programme.

The programme is aimed at expanding livelihood and employment opportunities for low-income households, improving eldercare services and strengthening the responsiveness of Sri Lanka’s social protection system.

ADB Country Director for Sri Lanka Shannon Cowlin said the programme would help ensure that the country’s economic recovery translated into meaningful improvements for vulnerable communities.

Although Sri Lanka’s economy continues to recover, poverty and vulnerability remain high, particularly among women, youth, older persons, persons with disabilities and communities in rural and other disadvantaged areas.

The programme will address these challenges through policy reforms, institutional strengthening and targeted investments.

As part of efforts to improve livelihoods, the programme will support the implementation of the Government’s National Empowerment Programme by assisting 30,000 households identified through the Aswesuma social registry in six districts.

The assistance will include livelihood grants, employment and business support, skills development, financial literacy training and improved access to reliable markets.

The programme will also focus on strengthening eldercare services by improving the policy and regulatory framework governing the sector.

Five model elderly day-care centres will be established in poorer districts to provide integrated support services and serve as demonstration sites for the eventual expansion of such services nationwide.

The ADB financing will further support improvements to the delivery of social protection by upgrading digital platforms, monitoring systems, case management and data governance.

Measures will also be introduced to improve the social protection system’s ability to respond to climate-related emergencies and other shocks, the ADB said.