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Subdued Christmas awaits crisis-hit Sri Lankans

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S. Manoharan, a retail businessman is seen in his shop in in Pettah, Sri Lanka. (Photo: S. Rubatheesan/UCA News)

High inflation and cost of living stemming from ongoing economic crisis have dampened Christmas celebrations

(UCAN) For Nirmala Fernando, this year’s Christmas is quite different from the chaotic previous year, when millions in Sri Lanka stood in kilometers-long lines to buy essential goods such as cooking gas, milk powder, and fuel.  

“There was an acute shortage last year. But this year, we have little money and everything is expensive. We cannot buy much,”  the mother of two told UCA News as she did her Christmas shopping in Pettah, a market area in Colombo.

Every year, the family used to invite their relatives for Christmas dinner, but not this year considering the expenses. Her husband, a contractor in the construction industry, is the breadwinner of the family along with her in-laws.

“We limited our Christmas shopping with some gifts for the kids and other essential goods. We fear prices will go up further in January next year with more taxes,” she said.

Like Fernando, for thousands of Catholic families, this year’s Christmas is a low-key affair due to ongoing economic hardships.

After the country declared bankruptcy on its foreign loans last April, the government of President Ranil Wickremesinghe decided to go for an International Monetary Fund (IMF) bailout package.

His predecessor Gotabaya Rajapaksa was forced to flee the country in July 2022 following nationwide protests after an unprecedented economic crisis hit the country since 2019.

The crisis continues with high inflation and a near depletion of foreign exchange reserves, making essential commodities expensive.As part of the US$ 2.7 billion IMF bailout package, the second tranche of US$ 337 million, was approved on Dec. 14.

Just hours before the approval, the Sri Lankan Parliament approved the annual budget by majority votes, which included a tax hike from 15 percent to 18 percent on goods, and scrapped tax amnesty given to all other products as required by IMF to increase local revenues.

The new tax scheme which includes tax on locally manufactured products will come into effect from January 1. Many fear that the prices of goods, particularly imported items will go further up once the new taxes come into effect.

At the bustling retail market of Pettah in Colombo where it used to glow with seasonal decorations and Christmas trees throughout the city in the past, the festival mood is slow to pick up despite government initiatives to promote the tourism industry.

People are slow to spend because of unprecedented price hikes, higher taxes, and fluctuating inflation, business owners say.

“Not many people are buying Christmas or seasonal goods these days compared to previous years. People don’t have extra money on their hands. They prioritize buying essential items,” said S. Manoharan, a retail businessman in Pettah.

He sells Christmas trees, decoration balls, fairy lights, and Santa hats The price of onions spiked to a staggering 550 rupees (US$1.71) per kilogram after the tax hike was announced, he pointed out.

Local media reports suggest that even eggs are short of supplies during the Christmas and New Year holidays, prompting the government to place an import order of 15 million eggs from India.Sri Lanka’s poultry industry collapsed last year. The price of one piece of egg climbed to 65 rupees in recent weeks.

The price hike of ingredients has pushed up the price of cakes. Many families are unable to afford butter and chocolate cakes during this festive season which are now being sold at 1,350 rupees per kilogram.

A Christmas wreath is sold for around 700 rupees and starting prices of plastic-made two-feet Christmas trees are at 8,000 rupees.

“Considering the unaffordability of the people, we have introduced discounts for some of the decoration items for up to twenty percent, but we don’t see much enthusiasm among the public in buying them,” Manoharan said.

“Many do visit the shops but leave after inquiring about prices,” he lamented.

In the Tamil minority heartland of northern Sri Lanka, the Christmas mood has not yet picked up due to heavy rain and flooding across the region in the past few days.

Many affected families, who took shelter in temporary evacuation centers and at the homes of relatives, have not returned home yet.

The severe economic hardships due to the increased tax burden and cost of living explain why many people are planning to celebrate Christmas and New Year modestly, said Father Anthonypillai Gnanapragasam, the administrator of the popular Our Lady of Madhu Catholic shrine in Mannar, Northern Province.

“Whatever the difficulties they find themselves in, as Jesus Christ showed to us to be fulfilled and hopeful during these difficult times. I believe people will mark the season with simple joy and be kind to each other more,” Gnanapragasam told UCA News.

“After all, the difficulties and hardships are not something new for folks here as they lived through the war period and came out of it with the support of their religious faith. I hope they will come out from the current economic challenges too soon,” he said.



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Presidential Suite at Sri Jayewardenepura General Hospital opened to the public

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The special ward at Sri Jayewardenepura General Hospital, which had until now been reserved exclusively for the use of the Executive President, was opened for the public for the provision of medical treatment to the general public from Tuesday (24).

This decision was taken jointly by the Ministry of Health and the hospital administration, in accordance with instructions given by President Anura Kumara Dissanayake.

Constructed in 1984 with a grant from the Government of Japan, Sri Jayewardenepura General Hospital was originally established with a capacity of 1,000 beds. However, in line with the initial design, an additional special unit, designated as Room No. 1001, was included exclusively for the personal use of the Executive President.

Over the 42 years since the hospital’s establishment, this facility has been utilised only on a very limited number of occasions. Nevertheless, it has been maintained over the years in anticipation of a possible visit by a sitting President, without being made available for patient use.

With effect from today, this special unit will be utilised for the benefit of general patients receiving treatment at the hospital. This step has been taken in line with the Government’s policy of ensuring the more efficient use of public assets and resources to meet the healthcare needs of the people.

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Cabinet Sub-Committee appointed to streamline the Public Service meets for the second time

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The second meeting of the Cabinet Sub-Committee appointed to ensure the orderly functioning of the public service was held on Tuesday (24) afternoon at the Presidential Secretariat, under the patronage of Prime Minister Dr Harini Amarasuriya.

Extensive discussions were held on the immediate measures required to ensure the uninterrupted delivery of government services to the public and to address the challenges faced by public servants.

Attention was also drawn to maintaining the continuous operation of services under the Ministries of Public Administration, Provincial Councils and Local Government, Health, Education, and Justice. Accordingly, it was decided to ensure that examinations are conducted as scheduled and that essential medicines are supplied to hospitals without disruption.

The challenges in passenger transport services and the railway transport system, as well as future measures, were also discussed at length. Focus was also placed on the steps to be taken regarding the transportation of essential goods.

In addition, attention was given to introducing digital service systems to facilitate working from home and to enhance the efficiency of existing services. It was also noted that these activities would be supervised under the Ministry of Digital Economy.

Instructions were further issued to review the current energy management practices across all ministries and departments and to take steps to implement necessary policy changes.

Minister of Public Administration, Provincial Councils and Local Government A. H. M. M. H. Abeyaratne, Secretary to the Prime Minister Pradeep Saputhanthri, Chief of Staff to the President Prabath Chandrakeerthi, Secretary to the Ministry of Public Administration, Provincial Councils and Local Government S. Aloka Bandara, Secretary to the Ministry of Health and Mass Media Dr Anil Jasinghe, Secretary to the Ministry of Energy Professor T. M. Udayanga Hemapala, Secretary to the Ministry of Digital Economy T. R. W. S. Dhanapala, Secretary to the Ministry of Justice and National Integration Ayesha Jinasena, PC, Senior Additional Secretary to the President Roshan Gamage, and Chairman of the Ceylon Petroleum Corporation D. J. A. S. S. Rajakaruna, along with other committee members, were also present at the occasion.

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Energy Minister indicted on corruption charges ahead of no-faith motion against him

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Jayakody

… first NPPer to face charges under Section 70 of Bribery Act

Colombo High Court has issued summons on Energy Minister Kumara Jayakody to appear in court today (27) to serve indictment in a corruption case filed by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC). Action has been taken under Section 70 of the Bribery Act. The losses suffered by the government have been estimated at Rs. 8,859,708.

National List (NL) MP Jayakody is the first NPP minister or politician at any level to be indicted for corruption. The NPP parliamentary group consists of 159 including 18 NL members.

The summons has been issued by High Court judge Rashantha Godawalage.

Although CIABOC previously in many instances arrested those who had been under investigation and produced them before Magistrate courts, Minister Jayakody has been directly summoned by the Colombo High Court.

The investigation into alleged corruption in procurement during the time Jayakody served the Ceylon Fertilizer Corporation (CFC) started after the change of government in 2015.

According to the CIABOC investigation, the alleged instance of corruption took place in early 2014 towards the tail end of Mahinda Rajapaksa’s second term. At that time Jayakody was CFC’s Procurement Manager, and the CIABOC dragged the investigation until its current leadership under overall speeding up of the cases recently completed the inquiry.

Parliament recently announced that the debate on no-faith motion moved against Minister Jayakody over alleged irregularities in the procurement of substandard coal for the country’s only coal-fired power station at Norochcholai.

SJB MP Mujibur Rahman said that the NPP, having campaigned on an anti-corruption platform during presidential and parliamentary polls in 2025 couldn’t under any circumstances shield minister Jayakody. The indictment of Jayakody over a corruption case that had happened in 2014 and the failure on his part to fulfill obligations as Energy Minister under the current dispensation couldn’t be considered separately, the Colombo District MP said.

The issue at hand is whether the NPP would try to protect Jayakody at the expense of the government, MP Rahman said. Once the NPPer is formally charged in a corruption case the government would find it extremely difficult to keep him in the cabinet, the former UNPer said.

SJB lawmaker S.M. Marrikar recently warned Minister Jayakody that he should be prepared to serve a jail term. The warning was issued at a media briefing that primarily dealt with the alleged irregularities in the procurement of coal and their decision to move a no-faith motion against the minister. Marrikar explained how the crisis coupled with the growing diesel shortage could compel the government to increase electricity tariffs by as much as 18 percent next week. MP Marikkar said that they were eagerly waiting to see who backs Jayakody at the expense of the government during the upcoming  vote on the no-faith motion.

There had been a previous case of a sitting minister being charged under the Bribery Act in respect of corruption perpetrated as a government servant. MP Rahman said that they intended to intensify the ongoing campaign against the government on the strength of the unprecedented corruption case and the outcome of the no-faith motion. “Of course, they have the numbers to defeat our no-faith motion. But, in doing so, they end up with egg on their face. That is the reality,” Rahman said, adding that those responsible for waste, corruption and irregularities whichever political parties they represented shouldn’t expect special status.

MP Rahman alleged that the CIABOC granted special status to Minister Jayakody. All those who had been indicted previously were first called to the CIABOC, recorded their statements and then arrested, handcuffed and produced in court. The media was afforded the opportunity to cover their humiliation, MP Rahman said, but in this case the powers that be paved the way for the accused to receive indictments directly from the Colombo High Court.

“Let us see whether the Bar Association of Sri Lanka responds to this development,” MP Rahman said.

By Shamindra Ferdinando

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