Welfare in Sri Lanka

Social welfare has long been an important part of Sri Lankan society and a significant political issue. It is concerned with the provision by the state of benefits and services. Social welfare is mostly funded through general taxation.

These include free education, universal healthcare, pensions, unemployment and disability allowances, food subsidies, and housing schemes. Rooted in both socialist policy traditions and post-independence nation-building goals, Sri Lanka’s welfare state has earned it the reputation of a country with one of the most comprehensive social protection systems in South Asia.^[1]

Sri Lanka's mordern state social welfare tradition dates back to the colonial period, but it was after independence in 1948 that the modern social security system was formalized. Ceylon introduced free education in 1939, championed by C. W. W. Kannangara under the Education Ordinance; and free healthcare in 1951, laying the foundation for a comprehensive welfare state.^[2] During the 1956–1977 period, successive governments led by the Sri Lanka Freedom Party (SLFP) implemented a range of socialist-oriented reforms, including food price subsidies, employment guarantees in the public sector, and welfare programs for the rural poor.^[3]

Sri Lanka provides free education from primary through university level in state institutions. Government schools are funded by the Ministry of Education, and state univeristies are funded by the University Grants Commission, limited to less than 10% of the student population. As of 2021, literacy in Sri Lanka stood at over 92.6%, one of the highest in the region.^[4]

Sri Lanka has a universal and free at the point of use health care system that is free for any one using it, including both citizens and non-citizens. It is publicly funded and run by the Ministry of Health. This includes maternal care, surgeries, vaccinations, emergency treatment, dental care and community medicine. According to the World Health Organization, Sri Lanka has one of the lowest maternal and infant mortality rates in South Asia.^[5]

The government provides State housing and land to those in need. Following independence, the Sri Lankan government implemented large-scale land grant and colonization schemes aimed at alleviating rural poverty and reducing population pressure in densely populated wet zone areas. These efforts were particularly prominent in the Dry Zone, where state-sponsored irrigation and agriculture projects like the Gal Oya Scheme and the Mahaweli Development Programme opened vast tracts of land for settlement.^[6] The programs provided free or subsidized land to landless peasants, often along with housing, farming inputs, and infrastructure such as roads and schools. Land recipients were typically granted permits or deeds under the Land Development Ordinance (1935), which restricted land alienation and emphasized productive use.^[7]

Sri Lanka utilizes a variety of land grant systems, primarily aimed at equitable land distribution, agricultural development, and settlement. These are issued under several legal frameworks, notably the Land Development Ordinance of 1935 and the Crown Lands Ordinance of 1949.

These are the most common form of state land distribution, especially in colonization and irrigation schemes. Permit holders are granted conditional rights to use and occupy land.

• The land cannot be sold, leased, mortgaged, or transferred without permission from the Land Commissioner.
• Inheritance is restricted and governed by the Ordinance, typically allowing transfer only to a nominated successor.^[8]

Once permit holders satisfy stipulated development and residency conditions, they may be awarded full grant deeds:

• Swarnabhoomi Grants: Issued primarily during the 1970s under state land settlement programs.
• Jayabhoomi Grants: Introduced in the 1990s and 2000s to regularize informal land holdings.^[9]

These grants confer freehold ownership, enabling recipients to sell, mortgage, or transfer the land under general land law.

These are issued for residential or agricultural purposes under the Crown Lands Ordinance No. 12 of 1949. The grants typically include:

• Usage restrictions (e.g., only for agriculture or habitation)
• Prohibitions on alienation without state approval
• Requirements for development within a specified time frame^[10]

Historically, land was granted to religious institutions, especially Buddhist temples, under the temple land system.

• These lands are governed under the Buddhist Temporalities Ordinance and other colonial-era statutes.
• They cannot be alienated and are managed by temple trustees for the benefit of religious activities.^[11]

Lands acquired by the Land Reform Commission (LRC) under the Land Reform Law, 1972 and its 1975 amendment were redistributed primarily to:

• Cooperatives
• State corporations
• Smallholder farmers

Recipients received land under conditions promoting agricultural use and often collective farming through tenant societies.^[12]

Lands provided under state-sponsored housing schemes (e.g., Urban Development Authority programs) are often:

• Initially leased on long-term basis
• Convertible to full freehold status upon completion of conditions (e.g., full payment, construction)^[13]

State-led housing programs include:

• Urban low-income housing
• Post-conflict resettlement schemes
• Estate worker housing in the Central Highlands

Organizations such as the National Housing Development Authority (NHDA) and the Ministry of Urban Development manage these programs.^[14]

Social security benefits are administered by the Department of Social Services. As of 2022, they include:^[15]

• Aswesuma Allowance - for transitional, vulnerable, poor, and extremely poor families. In response to both economic challenges and long-term inefficiencies, the government launched the Aswesuma Welfare Benefit Scheme (2023), a data-driven, digitalized social registry aimed at consolidating and targeting benefits more effectively. "Aswesuma marks a shift from universal benefits to targeted support based on household income and vulnerability indices."^[16]
• Samurdhi Allowance - for low income families. launched in 1995, is the country’s flagship poverty alleviation scheme. It provides cash transfers, microfinance, and employment support to low-income households. As of 2022, approximately 1.8 million families benefited from Samurdhi.^[17]
• Pregnant Mother's Allowance
• Mahapola Scholarship

The government offers pensions to:

• Retired member of parliaments, public servants, military personnel,
• Elderly citizens (over 70 years, via the Elderly Assistance Scheme)
• Farmers and fishermen under separate schemes

Private provident funds existed in the private sector, with some companies contributing on a voluntary basis until 1958, when the Employees' Provident Fund was established by S. W. R. D. Bandaranaike following the enactment of the Employees' Provident Fund Act No 15 of 1958 which established the Employees' Provident Fund which made it compulsory for all employers and employees to contribute if not employed in a pensionable role. This was further supplemented by the Employees' Trust Fund in 1981.^[18]

Females are entitled for paid maternity leave in both the state and private sector with the employer responsible for payment of their wages during the period of leave. In addition, mothers are allowed a daily time allowance to feed babies until they reach one year of age.

The Ministry of Social Empowerment administers financial aid for the disabled, chronically ill, and orphans. Unemployment support is limited but may be provided under specific programs, particularly for war-affected persons and youth.^[19]

• Elderly, Disabled, and Kidney Aatients Allowance

The government provides rice and flour subsidies, midday meals in schools, and infant nutrition programs like Thriposha. These programs aim to combat malnutrition and food insecurity, especially in the Dry Zone and plantation areas.^[20]

Despite its achievements, Sri Lanka’s welfare system faces criticism for:

• Leakages and inefficiency in targeting^[21]
• Underfunding due to budget deficits and IMF-led structural adjustments
• Political patronage influencing welfare allocation
• Exclusion of some vulnerable groups, particularly in conflict zones and estate sectors

The 2022 economic crisis severely strained public finances, leading to delays in benefit payments and calls for restructuring welfare spending under international loan agreements.^[22]