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Government prepares to force the people to accept the economic burdens

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by Prof.Tissa Vitarana

The people continue to suffer more and more due to inflation but the Government’s response is inadequate. The price of food keeps rising while there is no increase in income. The result is that a large mass of poor are facing a grave crisis. To my knowledge a large number of families have only one meal a day. Some of them with difficulty provide two meals to their children.

Stories of children fainting in school due to hunger are widespread. There are also reports that school attendance has dropped and the education of the children is suffering. Even among lower middle class families there has been an adverse impact. The reports coming from the Medical Research Institute (MRI) and other such institutions suggest that the nutritional value of the food consumed has also deteriorated.

The MRI states that the income of more than 60% of families is below the poverty line. The current data suggest that among them the level of malnutrition is approaching 20%. This means that among children under five years of age, one out of five is malnourished. Not only is their physical development affected but also their mental development. This will have an adverse effect on the future generation.

In the face of this food crisis I appeal to the Government to give priority to addressing this problem. About a year ago I mentioned this situation to the former prime minister but there doesn’t seem to be any positive response up to now. The government should identify the families that are at risk. This can be done easily through the midwives and the public health inspectors (PHIs). The families that are at risk should be provided with dry rations, at least once a week, ensuring that essential food items reach those affected.

Even among those consuming a sufficient amount of food there is concern among nutritionists that the quality of the food from a nutritional point of view is inadequate. The high price of food which is continuing to increase (food inflation) needs urgent corrective measures. While welcoming the fact that the price of flour has been reduced by Rs.24/-, it is distressing to see that the price of a loaf of bread remains unchanged. The government should insist that bakers pass on the price reduction to the consumer. As a result of a number of problems that have arisen in the agriculture sector, like the scarcity of chemical fertilizer, the production of food, both rice and vegetables, have also reduced. There is a shortage of food according to media reports and this should be looked into and corrected.

The Paddy Marketing Board (PMB) has cut down purchasing paddy due to a lack of funds. In this context there are reports that the five main private mill owners are purchasing the paddy at a low price so that the farmers suffer. It would appear that this paddy is being stored in order to raise the market price of both paddy and rice. I have been informed that the government rice mills are also not fully operative. This situation must not be allowed to continue. I call upon the ministers and officials concerned to see that the government stocks are release to the market so that the price can be brought down. Profiteering in the food sector must be prevented by urgent government action.

Another area of concern is the shortage and high price of medicines, specially essential ones. There is an acute shortage in the government hospitals, and statements have been made by doctors that as many as 90 medicines, including essential ones, are not available. This is a very serious situation which may lead to increasing illness and even more deaths.

The government must take urgent action to see that this situation does not continue and that normalcy is restored. It is sad to see that donations of medicine have to be obtained from both local and foreign sources from countries like India, China and Japan. Adequate funds must be provided by government for the purchase of the required medicine as a matter of urgency. I have been informed that shortage of a large number of essential medicines exists both in the government and the private sectors and needs urgent attention.

The government tax policy is also a cause for concern. While indirect taxes which affect the poor are raised, the direct taxation is limited and done in a unfair manner. The middle class is being targeted while the rich and super rich are hardly affected. It is disturbing to see that the government gives tax holidays and waivers to the rich. Not surprisingly government revenue has fallen and both capital and recurrent expenditure have to be curtailed, adversely affecting the development of the country and the lives of the people.

When Sri Lanka was faced with one of its most severe economic crises in 1972/73, Dr.N.M.Perera, who was then the Minister of Finance, put the main tax burden on the rich, raising the upper limit to 70%. In today’s context too the government should take similar action by placing the main tax burden on those who can afford to pay.

The cost of transport has also gone up steeply. This directly affects passengers, but it also affects the price of goods. The lack of dollars also affects industries due to the inability to purchase essential foreign requirements, and many private and public enterprises have had to curtail production. This in turn leads to increased unemployment. The economy as a whole is contracting due to the above changes with reduced incomes of a large section of the population who are also badly affected by inflation and the high prices.

The suffering people are being forced into a situation where they have to openly protest. It is distressing to see that the Ranil Wickremesinghe – led government is strengthening the armed forces and the police. It is clamping down on reasonable peaceful protests. Are we heading for Fascist rule? This must not be permitted under any circumstances. While warning the public of the possible dangers it is essential that the trade unions become more active and warn the working and middle classes and prepare them to resist any moves to suppress the people and force them to submit to the burdens that are being contemplated.



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Special Coordination Committee meeting for Badulla District chaired by the President

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A Special Coordination Committee meeting for the Badulla District was held on Wednesday (13)  afternoon  at the Badulla District Secretariat under the patronage of President Anura Kumara Dissanayake to review the progress of measures taken to restore normalcy to the lives of people affected by the cyclone “Ditwah” and to develop infrastructure in the district.

As a result of the disaster situation, 90,667 individuals belonging to 26,517 families in the Badulla District were affected. A total of 77 estate houses and 507 rural houses suffered complete damage. In addition, 1,376 estate houses and 1,474 rural houses have been identified as high-risk dwellings. Accordingly, the total number of families that need to be resettled in the Badulla District is 3,434. During the meeting, the President inquired separately at divisional secretariat level about the resettlement process and the issues that had arisen.

Special attention was also given to the speedy release of state lands currently occupied by private companies, which have been proposed for resettlement purposes. The President instructed officials to commence housing construction work immediately after reaching agreement among the relevant institutions regarding the release of these lands.

The President further emphasized the need to expedite the resettlement process and stated that authorities should move beyond reports and plans and ensure that people who lost their homes gain confidence and hope in owning a new house.

The President also instructed that people who are hesitant about relocating to different lands should be given time until June 15 to make a decision.

The President separately reviewed the progress of compensation payments to affected people in the Badulla District, including compensation for loss of livelihoods, compensation for small and medium-scale business establishments, housing rental assistance and compensation for loss of life.

Attention was also drawn to the process of removing sand and rocks deposited on paddy fields and agricultural lands due to the disaster. It was decided to provide an allowance of Rs. 25,000 per acre for this purpose and to implement the programme with the support of farmer organizations.

Special focus was also given to the development of roads in the Badulla District damaged by the disaster. The President instructed that work on all 21 affected roads under the Road Development Authority be completed within this year.

The President also inquired about the programme being carried out for provincial road development and the required allocations and instructed officials to prepare and submit estimates for the necessary funding for all those roads.

The President further instructed officials not to consider financial constraints as an obstacle in restoring normal life for those affected by the disaster. President Dissanayake stated that the district should recover from the destruction caused by the cyclone within this year and be prepared to restart the Badulla District development programme from next year onward.

Also attending the meeting were Badulla District Coordination Committee Chairman and Minister of Plantation and Community Infrastructure, Samantha Vidyarathna; Co-Chairman and Uva Province Governor, Attorney-at-Law Kapila Jayasekara; Deputy Minister of Tourism, Ruwan Ranasinghe; Deputy Minister of Youth Affairs, Dinidu Saman Hennayake; Members of Parliament Kitnan Selvaraj and Ravindra Bandara; the Mayors of Badulla and Bandarawela Municipal Councils; Chairpersons of Local Councils; public representatives; the Chief Secretary of the Uva Province; the District Secretary; government officials of the Badulla District; Heads of relevant Departments; and representatives of the security forces.

(PMD)

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SJB flays PUCSL for shifting coal scandal losses to electricity consumers

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Sajith Premadasa

Alleging that the Public Utilities Commission of Sri Lanka (PUCSL) has shifted the massive losses, caused by the coal scam, to the hapless public, Opposition and SJB Leader, Sajith Premadasa, has questioned the conduct of the regulator, noting that it is mandated to protect the interests of both the service provider and the consumers.

Premadasa alleged that the PUCSL ignored the representations made by the SJB on behalf of local industries.

Premadasa said that the PUCSL had authorised the latest 18% increase, in response to the request made by the recently established National System Operator (Pvt) Ltd (NSO), on behalf of the NPP government.

The PUCSL was established in terms of the Public Utilities Commission of Sri Lanka Act, No. 35 of 2002. Although the PUCSL was supposed to function as a multi-sector regulator for electricity, water services and petroleum industries, successive governments refrained from bringing water services and petroleum industries under its purview.

The Opposition leader alleged that the PUCSL did the bidding of the government.

Since January this year, PUCSL has increased electricity tariffs on three occasions. The latest came into operation on 11 May.

The PUCSL consists of Prof. K. P. L. Chandralal (Chairman), Engineer Piyal Henanayake (Deputy Chairman), Dr. M.C.S. Fernando, and Lilantha Samaranayake, PhD.

Premadasa said that instead of taking tangible measures to recover the unbearable losses caused by the coal scam, the government burdened the entire country through the PUCSL.

“Don’t forget that the government is shielding its henchmen responsible for the coal scam at the expense of the country,” MP Premadasa said, pointing out that there couldn’t have been any dispute over their culpability, after the National Audit Office (NAO) found fault with the Energy Ministry for granting the tender for the supply of coal for the 2025/2026 season to a company not qualified even to participate in the tender process.

The SJB leader declared that the resignation of Energy Minister, Kumara Jayakody, and its Secretary, Prof. Udayanga Hemapala, in the immediate aftermath of Parliament defeating a no-faith motion against the Minister was meant to protect the ruling party.

The PUCSL has stated that the NSO received Rs 15 bn from the government to grant relief to 95% of the consumers. “How could the PUCSL justify unbearable electricity tariff increases for the remaining 5% of the consumers, knowing very well that it will destabilise key sectors in the economy?” a power sector expert said.

By Shamindra Ferdinando

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Rains bring relief to debt-ridden CEB as reservoirs fill; one dead, 62 families affected by adverse weather

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The widespread torrential rains currently experienced countrywide are expected to provide significant financial relief to the debt-ridden Ceylon Electricity Board (CEB) by sharply increasing hydroelectric power generation and reducing dependence on costly thermal and coal-powered electricity generation, power sector officials said yesterday.

Senior engineers of the CEB told The Island the rapid rise in water levels in major catchment areas and reservoirs had already strengthened hydropower generation capacity across the country.

Officials of the Irrigation Department confirmed that 33 reservoirs are presently spilling following continuous heavy rainfall over several parts of the island.

Among the major reservoirs spilling are Rajanganaya, Lunugamwehera, Weheragala, Deduru Oya, Nalanda and Wemedilla reservoirs, while several spill gates have been opened to release excess water due to heavy inflows into the catchment systems.

An Irrigation Department engineer said catchment areas linked to the Mahaweli, Kala Oya and southern river basins had received exceptionally heavy rainfall over the past several days.

“The inflows are extremely high. Reservoir capacities are increasing rapidly and this is highly beneficial for irrigation, water supply and hydroelectric generation,” the official said.

CEB engineers explained that the increase in reservoir storage levels would enable the Board to maximise hydroelectricity generation from major hydropower stations linked to the Mahaweli and Laxapana systems.

A senior CEB engineer said hydropower remained the cheapest electricity source available to Sri Lanka.

“Hydro generation costs are minimal compared to thermal generation. Once reservoirs fill up, we can considerably reduce expensive oil-based thermal generation,” the engineer said.

According to power sector estimates, hydroelectricity generation costs remain below Rs. 5 per unit, whereas coal-fired electricity generation costs range between approximately Rs. 18 and Rs. 25 per unit depending on international coal prices and exchange rate fluctuations.

Diesel and furnace oil-powered thermal generation are significantly more expensive, costing between Rs. 40 and Rs. 70 per unit.

CEB officials said the prevailing rainy conditions were therefore producing enormous savings for the financially-strained utility.

Daily electricity demand currently fluctuates between 45 million and 50 million units. One unit equal 1 kWh. One million units 1 GWh.

Energy sector estimates indicate that if hydropower generation replaces between 10 million and 15 million thermal-generated units daily, the CEB could save between Rs. 350 million and Rs. 900 million per day depending on the displaced fuel source.

Even replacing coal-powered generation alone could save between Rs. 150 million and Rs. 300 million daily.

“The present rains have arrived at a critical time for the CEB. Higher hydro generation means lower fuel imports, reduced thermal dispatch and major savings for the utility,” another senior engineer said.

Meanwhile, the prevailing adverse weather has also caused fatalities and damage in several districts.

The Disaster Management Centre (DMC) said one person had died while 62 families in four districts had been affected by the severe weather conditions.

The fatality was reported from the Koralai Pattu South Divisional Secretariat Division in the Batticaloa District.

According to the latest DMC situation report issued at 10.00 p.m., 17 Divisional Secretariat divisions across four districts have been affected by the disaster situation caused by the severe weather.

Some 203 persons belonging to 62 families have been affected so far, while 17 people are currently being accommodated at safe shelters.

The DMC further stated that 39 houses had been damaged due to the prevailing adverse weather conditions.

Meanwhile, the Department of Meteorology issued a red warning for heavy rains in several parts of the country.

The Met. Department said the prevailing showery conditions were expected to continue further due to the low-pressure area in the vicinity of Sri Lanka.

Very heavy showers exceeding 150 mm are likely at some places in the Western, Sabaragamuwa, Central and Northwestern provinces and in the Galle and Matara districts.

Heavy showers of about 100 mm are also likely at some places elsewhere across the island.

The Disaster Management Centre yesterday urged the public to take adequate precautions to minimise damages caused by heavy rain, strong winds and lightning during thundershowers.

By Ifham Nizam

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