News
Lanka has sixth highest food price inflation: World Bank
The World Bank in their latest assessment put out a list of 10 countries with the highest food price inflation. Sri Lanka was ranked at sixth with a percentage of 86%, while Zimbabwe was at the top spot with a staggering 321%.Most notably according to the report Sri Lanka’s food inflation is observed to be worse than that of countries such as Suriname, Rwanda and Iran as well.
Zimbabwe, Lebanon, Venezuela and Turkey ranked first four countries in the assessment while Iran, Sri Lanka, Argentina, Moldova, Rwanda and Ghana were the remaining countries in the list published by the World Bank.
The World Bank in its latest update for the month of October had opined that domestic food price inflation would continue to rise, especially in low and middle-income countries, including African nations.
When faced with probable food shortages at the start of the COVID-19 pandemic, countries actively used trade policy to adapt to domestic demands.As of July, Sri Lanka is experiencing major domestic food supply shortages.Due to fertiliser shortages, agricultural production in Sri Lanka has reduced by 40% to 50%, and there is a scarcity of foreign exchange to purchase food imports.
“Fertilizer and fuel (for land preparation, transport, and harvesting activities) shortages are expected to limit the food supply. Some relief is coming from the first shipment of 44,000 tonnes of urea supported by Indian credit (and 21,000 tonnes is expected to arrive soon). There has been an increase in demand for Indian rice, with roughly 9.6 million tonnes shipped this year,” the assessment stated.
Exporters are rushing to secure letters of credit and have signed contracts to export 1 million tonnes of rice from June to September 2022, fearing that export restrictions may be imposed (as has happened with wheat). Furthermore, food price inflation in Sri Lanka reached 80%.
“Domestic food price inflation remains high around the world. Information between May to August 2022 shows high inflation in almost all low-income and middle-income countries; 88.2 per cent of low-income countries, 91.1 per cent of lower-middle-income countries, and 93 per cent of upper-middle-income countries have seen inflation levels above 5 per cent, with many experiencing double-digit inflation. The share of high-income countries with high inflation has also increased sharply, with about 82.1 per cent experiencing high food price inflation,” the update read.
The bank noted that there has been another increase in fertilizer prices, in addition to increasing energy prices, as policy measures such as export restrictions have limited global fertilizer availability.
“The war in Ukraine has altered global patterns of trade, production, and consumption of commodities in ways that will keep prices at high levels through the end of 2024 exacerbating food insecurity and inflation. High food prices have triggered a global crisis that is driving millions more into extreme poverty, magnifying hunger and malnutrition,” the bank added.
News
Opposition accuses govt. of weaponising tax laws
… calls for modernising Inland Revenue Dept.
Opposition and SJB Leader Sajith Premadasa yesterday criticised the government’s proposed amendments to the Inland Revenue Act, claiming that a new provision in the draft legislation could unfairly lead to criminal action against ordinary citizens and small business owners over administrative tax-related matters.
In a statement, Premadasa said the public was “not angry about paying taxes” but was frustrated by what he described as unfair treatment under the proposed law.
He alleged that Section 185A of the proposed bill could make delays in filing tax returns or registration-related issues criminal offences, warning that struggling small-scale entrepreneurs could be treated in the same manner as individuals deliberately evading millions of rupees in taxes.
“That is wrong,” the Opposition Leader said.
Premadasa further accused the government of resorting to criminal action against people instead of reforming and modernising the Inland Revenue Department and simplifying tax compliance procedures.
He also questioned the government’s commitment to tackling corruption and financial crimes, asking why stronger measures had not been taken against money laundering, financial fraud and those accused of misappropriating public funds.
“Go after the corrupt. Punish real fraudsters. But do not weaponise the law against the common man,” he said.
Premadasa added that the Opposition would continue to resist legislation that undermined “fairness, proportionality, and the constitutional rights of the people.”
News
Floods, landslides affect 3,475 people
Adverse weather conditions prevailing across the country have severely affected 3,475 persons belonging to 1,113 families in seven districts, according to the Disaster Management Centre (DMC).The DMC said 1,310 individuals from 489 families had been relocated to eight temporary safety shelters due to the deteriorating weather situation.
The DMC also confirmed one death from the Koralepatthu South area in the Batticaloa District.
As of 10 am yesterday (14), a total of 88 houses and one business establishment had sustained partial damage as a result of the adverse weather conditions.
Authorities have urged the public in vulnerable areas to remain vigilant and follow safety instructions issued by disaster management and local officials as heavy rains continue to affect several parts of the country.
Meanwhile, the National Building Research Organisation (NBRO) yesterday extended landslide warnings for several districts across the country due to the prevailing adverse weather conditions.
According to the NBRO, Level 2 landslide warnings have been issued for Neluwa in the Galle District; Agalawatte, Baduraliya, Matugama, Horana and Walallawita in the Kalutara District; and Ratnapura and Pelmadulla in the Ratnapura District.
Level 1 landslide warnings remain in effect for several areas in the Badulla, Galle, Kalutara, Kandy, Kegalle, Kurunegala, Matale, Monaragala, Nuwara Eliya and Ratnapura districts.
The warned areas include Bandarawela, Passara and Hali Ela in Badulla; Thawalama, Elpitiya and
Niyagama in Galle; Ingiriya and Bulathsinhala in Kalutara; and multiple Divisional Secretariat areas in the Kandy District, including Poojapitiya, Deltota, Udunuwara and Pathahewaheta.
Warnings have also been issued for Bulathkohupitiya, Mawanella, Kegalle, Aranayake, Yatiyanthota, Warakapola and Rambukkana in the Kegalle District; Ridigama in Kurunegala; Rattota, Naula and Ambanganga Korale in Matale; and Wellawaya, Badalkumbura and Bibile in Monaragala.
In the Nuwara Eliya District, the warning covers Norwood, Ambagamuwa Korale and Kotmale, while Eheliyagoda, Kalawana, Kuruwita, Godakawela, Kiriella and Ayagama in the Ratnapura District have also been placed under alert.
The NBRO said the warnings were extended in view of further rainfall forecast by the Department of Meteorology and urged residents in vulnerable areas to remain vigilant and follow instructions issued by authorities for their safety.
Meanwhile, the water levels in several major river basins that had risen due to recent heavy rainfall are now receding following a decline in rainfall over the past 24 hours, the Department of Irrigation said.
Director of Irrigation (Hydrology and Disaster Management) L.S. Sooriyabandara said water levels in the Nilwala River, Gin Ganga, Kalu Ganga and Attanagalu Oya basins were showing a downward trend as rainfall eased.
He noted that water levels were declining in most areas, with the exception of the Millakanda area in the Kalu Ganga basin.
However, Sooriyabandara warned that the current improvement could be temporary, as the Department of Meteorology has forecast further rain in the coming days.
According to the Department, 18 of the country’s 73 major reservoirs are currently spilling over, while another 18 medium-sized reservoirs are also discharging water.
He stressed that the release of water does not indicate a major flood situation at present, but urged the public to remain vigilant and follow future advisories issued by authorities.
By Norman Paliahwadane and Chaminda Silva
News
Bid to release forest lands sparks outrage
A controversial move to release sections of the protected Thumbikulam Forest Reserve in the North Central Province for private commercial interests has triggered strong protests from environmentalists, who warn that the decision could devastate a critical elephant habitat and deepen Sri Lanka’s worsening human-elephant conflict.
Concerned activist Sajeewa Chamikara described the alleged attempt to alienate forest lands as “an environmentally reckless and legally questionable exercise” that could inflict irreversible ecological damage on one of the region’s most sensitive forest ecosystems.
Speaking to The Island, Chamikara said the Thumbikulam Forest Reserve was not merely an isolated forest patch, but a vital ecological corridor sustaining elephant movement, watershed protection, biodiversity conservation and rural agriculture.
“The destruction or fragmentation of this reserve will inevitably intensify human-elephant conflict, threaten nearby farming communities and undermine the very purpose for which this forest was declared protected,” he warned.
Environmental documents reviewed by conservation groups indicate that approximately 50 acres within the reserve, located in the Palugaswewa Divisional Secretariat Division, are reportedly being considered for release from protected status, with a portion allegedly intended for tourism-related commercial activities.
The Thumbikulam Forest Reserve, gazetted as a protected forest in 2013, covers nearly 2,744 hectares and functions as a crucial ecological
buffer linking several wildlife habitats in the North Central Province.
Chamikara said the area also protects vital water catchments and supports the livelihoods of farming communities dependent on irrigation and cultivation systems in the surrounding villages.
“This is not barren land available for exploitation. It is a legally protected forest with enormous ecological significance,” he stressed.
He alleged that attempts were being made to remove sections of the reserve from protected status without proper scientific evaluation, environmental safeguards or meaningful public consultation.
According to the environmental assessment, the forest area serves as an important elephant movement corridor connecting larger forest ecosystems, enabling elephants to move naturally between habitats.
Conservationists fear that disrupting this corridor would force elephants into villages and farmlands, escalating already deadly encounters between humans and wildlife.
Sri Lanka continues to record one of the highest levels of human-elephant conflict in the world, with hundreds of elephants and dozens of humans killed annually.
Chamikara accused certain officials of ignoring both environmental law and scientific evidence in favour of short-term commercial interests.
“The law does not permit protected forests to be arbitrarily carved up for private ventures. Any such action would violate the very objectives of forest conservation legislation and national environmental policy,” he said.
He noted that under Sri Lanka’s environmental regulations, any project affecting protected forest ecosystems requires a rigorous Environmental Impact Assessment (EIA), public scrutiny and legal compliance before any land release can even be contemplated.
“Protected forests are not political gifts to be distributed at will. They are national ecological assets that safeguard biodiversity, climate resilience, water security and the survival of wildlife,” he asserted.
Environmental groups also warned that the proposed land release could create a dangerous precedent for future encroachment into other protected forests across the country.
Chamikara called on the government, the Forest Department and environmental authorities to immediately abandon any attempt to degazette lands within the Thumbikulam Forest Reserve and instead strengthen conservation measures to protect elephant corridors and fragile ecosystems.
“If the authorities proceed with this destruction in the name of development, they will be directly responsible for escalating environmental degradation and human-elephant conflict in the region,” he cautioned.
By Ifham Nizam
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