Selection criteria and targeting the poor for poverty reduction: the case of social safety nets in Sri Lanka
Selection criteria and targeting the poor for poverty reduction: the case of social safety nets in Sri Lanka

Summary/Abstract: Reducing poverty and improving the living standards of the poor and vulnerable populations in Sri Lanka have been one of the country’s key goals. The government has designed poverty-targeting programs with relevant government agencies working to support low-income families. The programs include cash transfers, microfinancing and various community-based and livelihood development activities, including the “Aswasuma” program, which is the primary safety net initiative. Although safety net programs have been receiving significant financial support for decades, many people still remain excluded as a result of mistargeting, lack of transparency and poor beneficiary selection methods. To address these challenges, the selection criteria have to be redesigned to effectively target poverty. This article explores the Multidimensional Deprivation Score Test (MDST), which assesses the multiple dimensions of household deprivation by weighting each deprivation through a data-driven approach. This methodology aims to identify the poorest and most vulnerable people more accurately. Using the data collected during the 2019 Household Income and Expenditure Survey, conducted by the Department of Census and Statistics, the MDST has improved targeting accuracy and thus the impact of social protection programs. It is therefore crucial to increase the efficiency of data collection and to compile the weighted deprivation score. Moreover, incorporating a community-level evaluation and regular monitoring is essential for maximizing the accuracy and effectiveness of targeting poverty.

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