The Government of Sri Lanka has made arrangements to borrow USD 200 million from the International Development Association (IDA) of the World Bank Group in 2023 to finance the implementation of Social Protection Project.
The Social Protection Project will contribute to implement the government led “Aswesuma” program using the newly established social registry, finance a small-scale pilot economic inclusion program for a selected number of poor and vulnerable people in selected geographic areas and sectors and will finance activities to improve the accountability mechanisms for effectively delivering cash transfers and economic inclusion activities.
The project will also support to mitigate the impact of the economic crisis on the poor and most vulnerable through the provision of income support and livelihood opportunities, while strengthening the adaptability of the country’s social protection system. Accordingly, the project aims to strengthen the main building blocks of the social protection system, with a specific focus on digital payments, financial inclusion, integrated information systems and broader social protection reforms.
The relevant Loan Agreement for the Social Protection Project, amounting to USD 200 million was signed by Mr. K.M. Mahinda Siriwardana, Secretary to the Treasury, and Mr. Faris H.Hadad-Zervos, Country Director of the World Bank, on 21st September, 2023 on behalf of the Government of Sri Lanka and IDA, respectively.