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Lankans migrate, work over time, and eat less to beat inflation

Published

3 years ago

2022/10/23

By SHIHAR ANEEZ

Leaving his family and relatives was the hardest decision for Suren. But he had no other option.He never wanted to go abroad for work. An accountant by profession, Suren even had the opportunity to be promoted for a higher post at the private firm he was working at in Colombo. But he was left with no choice.

“For the last three years, I had hopes that this country would become a better place for us to live peacefully. But it is becoming increasingly hard to live with the status quo,” the 36-year-old father of three from Colombo suburb Dehiwela said in conversation with EconomyNext.

Armed with a local accountancy qualification, Suren managed to find a job in Dubai. He leaves Colombo next week and is now in the process of preparing his family for his physical absence.

“It’s very hard to find an affordable school van service for my two sons. If I live in Sri Lanka, at least 40 percent of my salary will go only to send my boys to school,” he said after dropping his children at one of the main schools in Colombo.

A currency crisis that led to a shortage of essentials, sovereign debt default, and later into a political crisis has forced Suren to look for better opportunities than his 50,000 rupee (139 dollar) monthly salary.The sharp depreciation of Sri Lanka’s currency alone resulted in his monthly salary eroding from 250 US dollars to its current level. Excess money printing by the central bank to artificially maintain record low interest rates and exchange rates are now taking their toll on Sri Lankans from all walks of life.

Suren will now earn in UAE dirham which has almost doubled against the local rupee in the last seven months.

“I can’t think of a future for my kids because at one point we did not have milk powder for my younger child, wheat flour to make breakfast, cooking gas for our own meals or medicines for my mother. More than anything, costs have gone up like crazy with no additional income,” he said.

Thousands of Sri Lanka’s skilled workers and professionals are facing the same situation as Suren. Most of them plan to leave the country either for a foreign job or to migrate permanently.

Official data showed that over a quarter million people have left the country so far this year, mainly for jobs.

“When you earn in foreign currency, at least you can manage the expenses,” said Suren.

“It is a cushion against the high costs. I hope I can take my family as well in the future to a foreign country. I have lost hope in this country.”

Sri Lanka’s inflation is hovering at a record high of 70 percent. The price of essential goods have more than tripled just in the last eight months, data showed.A person needs at least 500 rupees to have three meals a day with minimum nutrition.

Food inflation is now hovering over 90 percent.The central bank’s tight monetary policy with a record increase of policy rates has yet to curb inflation.Money printing, supply disruptions caused by former president Gotabaya Rajapaksa’s fertilizer mess up, a crippling dollar shortage, and sharp depreciation of the rupee led to significant price increases and affected supply across the board.

Supermarkets have put up notices warning customers that there could be frequent price hikes and asking them not to argue with staff if the real prices are not the same as those displayed on the shelves.Many Sri Lankans have cut down on food. Some have reduced their meals to two a day while others manage with reduced protein content in their plates. Some others have changed meals to one and consume cheaper foods at main meals.

“My wife and I have stopped eating in the mornings. But we try to give nutritious meals to our kids,” Shantha Silva, a 46-year old father of two, told EconomyNext.

Silva was a threewheeler taxi driver before the economic crisis. But the fuel shortage and expensive petrol have resulted in less demand for hires as more people have shifted to public transport or push bicycles or walking.Now he goes on hires as a part-time driver mainly at night. In morning hours, he works as a security guard at a private office in Wattala, 10km from capital Colombo, while also working in a hotel kitchen when he has some time off.

“It’s a machine life now,” said Silva.

“If you want to survive in Sri Lanka without stealing or smuggling drugs, you have to have multiple jobs or reduce the meals you take.”

Silva’s wife is a cancer survivor but still needs medicines to keep the 45-year old kindergarden teacher healthy.

Both of their salaries are now adequate to manage only 50 percent of the total needs of their family. Before the crisis, Silva’s family saved at least 10,000 rupees or nearly 10 percent of their monthly compensation.But now Silva, similar to millions of Sri Lankans, is struggling to make ends meet.

“Reducing meals is not an option for children as they might face malnutrition. So I try my best to feed them by working multiple jobs,” he said.

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Rs 13 bn NDB fraud: Int’l forensic audit ordered

Published

6 hours ago

2026/04/21

Thilina Walpola

The National Development Bank PLC (NDB), in consultation with the Central Bank, will soon appoint an international firm to conduct a comprehensive forensic audit into the Rs 13.2 billion bank fraud, currently being investigated by the Criminal Investigation Department (CID).

Controversy surrounds the failure on the part of relevant authorities to detect the massive scam that certain employees started perpetrating in mid-2024.

Declaring that day-to-day developments, relating to the NDB PLC, were under scrutiny, the Central Bank said that the NDB, in consultation with CBSL, was in the process of finalising arrangements to engage a leading international firm, with experts from overseas, to conduct a comprehensive forensic audit into the incident.

The Central Bank stated: “The scope of this audit will apart from matters directly related to the commission of this fraud, also fully address and assess any failures on compliance with regulatory requirements on control, oversight and governance during the period in which the fraudulent transactions took place. The forensic audit is expected to commence shortly, and its progress, including any interim findings as well as the final report, will be submitted directly to CBSL who will directly engage with the auditors to the extent considered necessary during the audit.

In parallel, CBSL has directed NDB to take immediate and expeditious measures to strengthen its internal controls and governance processes, with particular focus on addressing identified lapses. NDB has also been required to commission an independent third-party review to assess the adequacy and effectiveness of its policies, procedures, systems, and internal controls.

NDB continues to meet all regulatory requirements relating to capital and liquidity. CBSL remains in close and continuous engagement with the Board and management of NDB, as well as other relevant stakeholders, and stands ready to take any further measures necessary to safeguard the interests of depositors and ensure the stability of the financial system. There is no evidence of any other regulated financial institution suffering any loss arising from the incident at NDB and the public are requested not to be misled by any statements to the contrary made in various fora.”

NDB board directors include Sujeewa Mudalige – former Managing Partner of PwC / Past President of CA Sri Lanka, Hasitha Premaratne – Managing Director of Brandix Group, Shanil Fernando – founding member of Virtusa Corporation and Co-Founder of Sysco Labs, Bernard Sinniah – former Managing Director of Citibank and Kasturi Chellaraja – former Group CEO of Hemas Holdings PLC.

The external auditors of NDB Bank PLC is Ernst & Young.

Meanwhile, the Committee on Public Finance (CoPF) that recently met under the Chairmanship of Member of Parliament Dr. Harsha de Silva observed, with serious concern, that there appear to have been considerable lapses in corporate governance at the bank, deficiencies in supervision by the relevant departments of the Central Bank of Sri Lanka, and undue delays in the reporting of material information.

The Committee firmly underscored that such shortcomings are unacceptable and directed that immediate corrective measures be undertaken. It further emphasised that it will continue to closely monitor this matter and exercise stringent oversight to ensure full accountability, transparency, and the safeguarding of public confidence in the financial system.

The NDB issue was dealt with when the Governor of the Central Bank Dr. Nandalal Weerasinghe, along with members of the Governing Board, the Monetary Policy Board, and senior officials, attended the meeting as part of the Central Bank’s statutory presentation to Parliament conducted once every four months.

News

Easter Sunday commemorations

Published

6 hours ago

2026/04/21

Thilina Walpola

Archbishop of Colombo Malcolm Cardinal Ranjith and Bishop Anton Ranjith will preside over the Easter Sunday commemoration event at St. Anthony’s Church Kochchikade today (21).

The event will begin at 8.45 am with the ringing of the funeral bell once, followed by two minutes of silence in memory of all victims.

Bishop Maxwell Silva and Bishop J.D. Anthony will lead the prayers at Katuwapitiya St. Sebastian Church where the holy mass is scheduled to commence at 7 am.

A prayer march will begin at Maris Stella College, Negombo, at 4.00 pm, today (21), and end at Katuwapitiya Church where over 100 persons died.

News

Former Minister Gamage under CIABOC probe over recruiting 134 persons from Galle district

Published

6 hours ago

2026/04/21

Thilina Walpola

Piyasena Gamage

Former Galle district lawmaker Piyasena Gamage is under investigation by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) over the recruitment of 134 minor employees from the Galle district to the Department of Technical Education and Training in violation of the approved recruitment procedures of the Department of Management Services.

Gamage is alleged to have done so during his tenure as Minister of Skills Development and Vocational Training. CIABOC arrested Gamage yesterday (20) and produced him before Colombo Chief Magistrate Asanga S. Bodaragama, who granted him bail on two sureties of Rs. 2 million each and further ordered that a travel ban be imposed.

Investigating officers told the court that the suspect had been arrested for allegedly committing the offence of corruption by abusing his powers as the Minister of Skills Development and Vocational Training and recruiting 134 minor employees from the Galle district to the Department of Technical Education and Training.