The Sri Lankan government on Tuesday announced that it would provide a cash allowance of between Rs 3,000 and Rs 7,500 to low-income families “severely affected” by the current economic crisis in the country. This decision was taken in the cabinet meeting held on Monday. Trade Minister Shehan Semasinghe said that bank assistance will be used for this purpose.
He said that about 33 lakh families have been identified, who will get the amount from May to July. Low-income families, who are entitled to Samadhi (Poor Relief), Elderly, Kidney and Disability Allowances, have been badly hit by the current economic crisis in the country. In a statement, Semasinghe said, the government has identified the need for immediate relief to these families and others on the waiting list.
According to the statement, an amount between Rs 3,000 and Rs 7,500 under various categories such as elderly allowance, kidney patient allowance and disability allowance will be distributed to low-income families. The World Bank is providing financial and technical assistance to Sri Lanka. Cash transfer will be done through bank accounts only. The minister said in a tweet that any eligible person who does not have an account will be informed by the concerned government authorities to open an account immediately.
The Daily News online portal quoted Central Bank Governor (CBSL) Nandlal Veerasinghe as saying in a report published last week that the World Bank would provide financial assistance of USD 600 million to Sri Lanka to help meet payment requirements for essential imports. agreed to provide. The report quoted Weerasinghe as saying that Sri Lanka would offer over USD 300 million out of the USD 600 million payable from the World Bank to provide direct financial assistance for low-income families.
Meanwhile, Prime Minister Mahinda Rajapaksa’s office has announced that China will give 300 million yuan to Sri Lanka to purchase medicine, food, fuel and other essential items. The move comes after Rajapaksa’s telephonic conversation with Chinese Prime Minister Li Keqiang earlier last month.
Debt-ridden Sri Lanka’s overall inflation rose to nearly 30 per cent in April from 18.7 per cent recorded in March, according to official data, as the island nation grapples with its worst economic crisis in decades. Sri Lanka has been in the grip of an unprecedented economic turmoil since independence from Britain in 1948. The crisis is due to a lack of foreign exchange, meaning the country cannot pay for imports of staple foods and fuels, leading to acute shortages and very high prices.
Months-long blackouts and severe shortages of food, fuel and pharmaceuticals have triggered widespread protests for the government’s resignation. According to data published by the government’s Census and Statistics Office, overall inflation reached 29.8 per cent in April, up from 18.7 per cent recorded in March.
Food inflation rose to 46.6 per cent in April from 30.21 per cent in March. The prices of most of the food items have increased. Sri Lanka needs at least USD 4 billion to deal with its escalating economic crisis, and talks are underway for financial aid with international institutions such as the World Bank, as well as countries such as China and Japan.
India has agreed to extend an additional USD 500 million line of credit to help Sri Lanka import fuel. India has already agreed to defer USD 1.5 billion in import payments that Sri Lanka is required to make to the Asian Clearing Association.
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