Regulatory & Policy NewsEconomy-wide / Cross-sector

🚨 Aswesuma Welfare Fraud Losses Near Rs. 30 Mn in Norwood

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• Fraud Overview: Investigations into Sri Lanka’s welfare and social safety net system reveal alleged fraud involving Aswesuma welfare payments totaling nearly Rs. 30 million across the Norwood and Talawakelle Divisional Secretariats. • Financial Impact: Estimated losses at the Norwood Secretariat approach Rs. 30 million, while suspected losses at the Talawakelle Secretariat stand at around Rs. 2 million. • Affected Parties & Modus Operandi: Around 100 low-income families have been affected. State employees allegedly siphoned payments meant for vulnerable households by using details of deceased elderly persons. • Legal & Disciplinary Action: - 20 State employees have been implicated across both divisions. - 18 employees linked to the Norwood case have faced disciplinary action, resulting in 10 dismissals (including 4 Norwood Secretariat staff and 6 teachers). - 2 female State employees were arrested under the Public Property Act and remanded for over 50 days. • Status: The Welfare Benefits Board’s Audit Division has been investigating the Norwood case for over two months, with the final audit report pending.

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