Samurdhi takes away incentive to work for rural poor : Amunugama

The Samurdhi and social welfare schemes have become a stumbling block in solving unemployment issues of the rural poor in Sri Lanka, Senior Minister for International Monetary Affairs Sarath Amunugama said.

The government has increased the value of basket of essential goods given to Samurdhi recipients to Rs. 1000 from Rs. 500 and Rs. 200. Under this set up, those in rural areas cannot be directed towards gainful employment and thereby depriving the country of a productive labour force. It is very difficult to find workers for tea rubber and paddy cultivations at present.

While the Samurdhi programme is expected to provide relief to poor households, the programme is criticised for taking away the incentive to work. Poor targeting by the state has resulted in more than 30 % of households receiving Samurdhi benefits while the number of households in poverty was around the 15% mark, he said.

Therefore, it is the time to analyse the ill effects that the freezing of the labour market would cause that has a direct impact on the economy, he said.

Participating as Chief Guest at the launch of the report and discussion on ‘ More and better jobs in South Asia-sri Lankan perspectives by the World Bank’ in Colombo on Thursday, Dr. Amunugama noted that 95% of rural youth seek government jobs creating a huge demand for it. One of the reasons for it was the govern- ment pension scheme, he revealed.

The launch of the report was jointly organised by Institute of Policy Studies and the World Bank

The Minister observed that there is a disparity in certain areas of education. There are only 25% science students from the entire student population and this is a reflection of the retardation in a pivotal area of education. Statistically, there are only 800 out of the 10,000 schools in Sri Lanka that teach science and have access to modern science and technology.

“Therefore, 75% is out in the dark. So what are we talking about? How do we find them employment? He said “we have to make great changes with science and technology going into our education.”