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Trader Exploitation of Cultivators: A Major Cause of Inflation.

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By Prof Tissa Vitarana (LSSP)

The people of Sri Lanka are suffering severely as a result of the high cost of living (inflation). The present Ranil Wickremesinghe led government is not ready to intervene on behalf of the people to reduce inflation. In fact, the government publicly encourages traders to raise prices as they like by telling them that their main objective should be to supply goods to the market. The inflation rate increase exceeds 60% and that of food is about 90%.

With the high cost of food and the failure of the government to increase salaries or allowances, both in the state and the private sectors, the people are faced with hunger and even starvation. A large number of the sources from the Lanka Sama Samaja Party (LSSP) inform us that in many families parents have only one meal a day so that the children can have two. The composition of the meal was rice and Pol Sambol. This may fill the stomach but the problem is the inadequacy of proper nutrition.

For instance a full plate of rice gives sufficient energy (carbohydrates) but it will give less than 50% of the protein requirement for growth. There is also lack of essentials like vitamins and minerals. The lack of these will particularly affect children. It is a crying shame that many children do not go to school due to this. Some of those go are reported by the media to be fainting due to hunger. This would not only affect the present generation but future generations as well.

Further I gather from MRI sources that more than 70% of families have an income below the poverty line. This would mean that they are suffering from a lack of food, besides other essentials. I was shocked to learn that the level of malnutrition, which was around 14% about a year or two ago has now gone up beyond 20%. The probability is that among children under five years of age, one out of every five will be malnourished. Not only their physical development but also their mental development will be retarded.

It is a well known fact that among farmers there is chronic debt. This is because they do not get any income until the time of harvest. Depending on the monsoon this period may vary from three to four months, only twice per year. Till the income is received the farmers get their requirements from the village traders in advance at a high interest rate. They are then at the mercy of these traders and other money lenders. They are forced to sell their produce to the lenders well below the market price. In many cases all the money they earn goes to pay their debt and they have to resort to further loans till the next crop is harvested.

Due to the inadequacy of their income many people, specially the housewives obtain micro finance at high interest rates to buy goods like sewing machines. Much of the income they get from such a source is also eaten up by the high interest rates of the lenders. These people get caught in a debt trap and this leads to their failure to pay the interest rates, and they are charged much higher penal rates on the shortfall. This forces to these women to pawn or sell their jewelry, and some eventually are driven to commit suicide.

The above situation has recently got aggravated by the shortage and high prices of fertilizers, due to political and administrative blunders. The LSSP is committed to promoting organic farming. But this must be done gradually and systematically using raw material available in the village. There is also a need to produce suitable seed varieties locally. The seed varieties available in the market is dependent on chemical fertilizer. The agriculture department should revise their policies accordingly.

Another factor causing food inflation is the monopoly by certain middlemen which affects the food crisis.

For example the conversion of paddy to rice used to be undertaken by both private and government mills. The government role in this process now is defunct. The Paddy Marketing Board does not purchase paddy and their mills are not functioning. It is a sad fact that many of the government mills had been sold to the private sector, while the balance are corroded and sold as scrap metal. The government has allowed five big millers to enjoy a monopoly and this enables them to fix prices at a low level. The competition by smaller mill owners had been eliminated to a larger extent by thuggery and damage to their mills.

Besides the continuous exploitation of the farmers as described above, there is a high rate of exploitation in the marketing process based on the neoliberal policies popularized in Sri Lanka after the UNP came to power in 1977. The chain of profiteering that has been established in Sri Lanka is massive. For instance the vegetables produced by the farmers of Nuwara Eliya are bought by local traders who make a profit by selling them to wholesalers in Dambulla. The Dambulla traders sell to the traders in Manning Market in Colombo, who then sell it to the Exclusive Economic Centers (EECs) scattered around the country. From these centers, after making a suitable profit, they are brought by the retailers. The latter make further profit from the consumer, who is at the end of this profit chain. The magnitude of this is evident when we compare the rupee prices per kilogram:

Producer’s Price paid by

selling price Consumer

Green Chillies 80-90 400-500

Brinjals 200-250 500

Potatoes 150-200 450-500

Tomatoes 250-300 600-650

Nadu rice 90-100 220-250

Samba rice 105 250 -275

The above chain of profiteering by the middleman was eliminated when Dr. N.M. Perera was the Minister of Finance in the Coalition Government of 1970, when a severe economic crisis was faced by the country (1972/3). He mobilized the LSSP. CP and other progressive forces to establish an effective producer and consumer cooperative system. They directly dealt with each other eliminating the above chain of profiteering by a variety of middlemen, and the farmer got a proper price for his produce and the consumer had only to pay a small extra amount to cover expenses. This was strengthened by the Marketing Department which used lorries to directly buy from the producer and ensure that the produce is available at a reasonable price at Marketing Department outlets in urban areas.

The extent to which the present government is guilty of allowing exploitation of the people is evident by the fact that the farmers are being forced to bring their produce to the traders, instead of the traders going to the farmers as in the past. As a result the farmer has to bear the cost of transport and has to sell his produce at any price that the trader is prepared to pay. If the trader so wishes he can refuse to buy, and the farmer has to throw away his produce and go back empty handed. This is a cruel practice that should not be permitted by any self respecting government. I and the LSSP strongly condemn this situation and demand that it should be terminated forthwith.



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Features

From stabilisation to transformation without delay

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At a symposium on reconciliation organised by the National Peace Council last week, more than 250 religious clergy, civic activists and political representatives from different communities gathered to discuss the country’s future. Speaking at the event, Minister Bimal Rathnayake explained the government’s approach to national reconciliation. He said the government viewed the country’s recovery in terms of a three stage process. The first stage was stabilisation, the second was development and the third was transformation. Reconciliation, he implied, would come in that final stage. The participation of Opposition Leader Sajith Premadasa at the same symposium, and the constructive nature of his comments, strengthens that hope.

When the present NPP government took office in 2024, the country was emerging from one of the gravest crises in its post Independence history. The economic collapse of 2022 had led to shortages of fuel, food, medicines and electricity. Inflation soared, foreign reserves disappeared and long queues became part of daily life. The political upheaval that followed culminated in the resignation of former President Gotabaya Rajapaksa after mass public protests under the banner of the Aragalaya movement. The country was then governed by a leadership that spoke the language of reform and reconciliation but was widely perceived as lacking a direct popular mandate.

Sri Lanka’s past experience suggests that stabilisation and transformation cannot be treated as entirely separate stages. Postponing reconciliation until some future moment risks repeating the failures of the past. If transformation is endlessly delayed until a supposedly perfect moment arrives, there will always be new crises and new reasons for postponement. Minister Rathnayake’s contention that the government’s immediate priority has necessarily been stabilisation flows from the government’s awareness of the precarious situation the country is. Over the past two years, the government has succeeded to a significant extent in restoring economic and political stability. Inflation has reduced, shortages have ended and public institutions have regained a degree of functionality.

Guaranteed Changes

On the other hand, the country’s development continues to face challenges due to adverse global conditions, including disruptions caused by conflict in the Middle East and extreme weather events that have affected tourism, trade and the cost of living. The danger is that reconciliation may be indefinitely postponed in the name of stabilisation. This danger can be reduced if the government works proactively with the opposition and civil society to commence practical measures of transformation now rather than later. The participation of Opposition Leader Sajith Premadasa at the symposium, and the constructive nature of his comments, has strengthened the sense that bipartisan engagement on reconciliation may now be possible.

The urgency of transformation came through strongly in the presentations made by representatives of the Sri Lanka Tamil and Malaiyaha Tamil communities. ITAK parliamentarian S.Shritharan spoke of the frustration caused by unresolved post war issues in the north and east. He referred to disputes regarding land occupied during the war years, including controversies linked to Buddhist temples and state sponsored settlement activity in areas claimed by local communities. He also pointed to the continuing large scale presence of the security forces in the north and east nearly two decades after the end of the war. These grievances have remained central to Tamil political discourse since the end of the armed conflict in 2009. Families displaced by war continue to seek the return of ancestral lands. Civil society organisations in the north have repeatedly called for greater civilian control over local administration and a reduction in military involvement in civilian life.

Academic research and practical work on the ground have shown that reconciliation cannot be separated from questions of dignity, equality and justice. Former minister Mano Ganesan, leader of the Democratic People’s Front, focused on the longstanding problems faced by the Malaiyaha Tamil community. He spoke passionately about continuing housing shortages, landlessness and economic marginalisation, issues that have persisted since Independence. He also highlighted the devastating impact of recent extreme weather events on estate communities that remain socially and economically vulnerable. The condition of the Malaiyaha Tamil community remains one of the enduring social justice issues in Sri Lanka.

After Independence in 1948, a large proportion of them were denied citizenship and voting rights through legislation that rendered them stateless. Though citizenship rights were eventually restored, the social and economic consequences of exclusion continue to be felt generations later.

Many families still lack secure housing and land ownership despite their immense contribution to the country’s plantation economy. Minister Rathnayake’s responses to both these concerns were politically significant. He argued that recent political developments, including the declining influence of narrow ethnic politics across communities, indicated a major shift in public attitudes. According to him, the political ground has changed in ways that make it increasingly difficult for politicians who rely primarily on ethnic division and communal insecurity to retain public support.

Inter-Connected

There is evidence to support the assessment about the changing political grounding which sees future prospects in the resolution of long standing problems. . The economic collapse of 2022 affected all communities alike and generated a new politics centred on governance, anti corruption, accountability and economic justice. The Aragalaya protests brought together Sinhalese, Tamils and Muslims in a common demand for political change. Although ethnic grievances have not disappeared, the crisis created space for a broader understanding that the country’s future depends on cooperation rather than division. Opposition Leader Premadasa’s comments at the symposium reflected this changing political climate. He emphasised that national reconciliation could not be separated from economic justice and the need to address disparities between regions and social classes.v He also mentioned the need for civil society organisations to take this message to the community. This wider understanding of reconciliation is important because ethnic inequality and economic inequality have often reinforced each other in Sri Lanka’s history.

Academic studies have identified the denial of citizenship rights after Independence as a historic injustice that set back the Malaiyaha community for decades. The challenge now is to ensure that transformation becomes part of the stabilisation and development process itself. Practical first steps are both possible and necessary. The release of civilian lands still under state control, greater devolution of administrative authority, reduction of military involvement in civilian affairs, language equality in public administration and accelerated housing and land ownership programmes in the plantation sector are all measures that can begin immediately without waiting for a final stage of transformation.

The government’s recent commitment that provincial council elections will finally be held this year is therefore significant. These elections have been repeatedly postponed by successive governments. Holding them would not solve the ethnic conflict by itself. But it would signal a willingness to restore democratic institutions and share power in a meaningful way.

Sri Lanka has repeatedly postponed difficult reforms in the hope that a more convenient political moment would eventually arrive. But opportunities are invariably created and fought for instead of being provided as a gift by a benevolent government.

The present moment, shaped by the economic crisis and public demand for accountable government, offers a rare opportunity to move simultaneously towards stability, development and reconciliation. Provincial council elections can be the first meaningful step. But they must not be the last.

by Jehan Perera

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Researchers to shape new environmental policy framework

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Some of the researchers at the meeting

In a significant move aimed at steering Sri Lanka’s environmental governance towards a more science-based and evidence-driven path, the Ministry of Environment has initiated a new collaborative mechanism to integrate leading researchers into national policy formulation and conservation planning.

The initiative was discussed at a high-level meeting chaired by Dr. Dammika Patabendi at the Ministry of Environment on Tuesday, where top environmental scientists, wildlife experts and researchers were invited to contribute towards what officials described as a “strategic transition” in the country’s environmental management framework.

The discussions focused on strengthening the scientific basis of environmental conservation programmes and national policy decisions while creating a more research-friendly environment for academics and field scientists engaged in biodiversity and ecological studies.

Particular attention was paid to long-standing concerns raised by researchers regarding procedural and operational difficulties encountered when conducting studies in collaboration with the Department of Wildlife Conservation and the Forest Department.

Minister Patabendi stressed the need for environmental policies to be guided by credible scientific data rather than ad hoc administrative decisions, ministry sources said.

Among the key proposals discussed was the establishment of a streamlined mechanism that would reduce bureaucratic obstacles faced by researchers in obtaining approvals, accessing field sites and sharing scientific findings with state institutions.

The Minister highlighted the importance of building stronger partnerships between policymakers and the scientific community at a time when Sri Lanka is grappling with escalating environmental challenges including deforestation, biodiversity loss, human-elephant conflict, climate-related disasters and ecosystem degradation.

Environmentalists attending the meeting had also highlighted the urgent necessity of incorporating empirical research into national decision-making processes to ensure long-term ecological sustainability and better resource management.

The meeting brought together several of Sri Lanka’s leading environmental researchers and academics including Rohan Pethiyagoda, Saminda Fernando, Sewwandi Jayakody, Samantha Gunasekara, Dinidu Devapura, Himesh Jayasinghe, Manoj Prasanna, Mendis Wickramasinghe and Suranjan Karunarathna.

Director General of Wildlife Conservation Ranjan Marasinghe also participated in the deliberations.

Officials said the proposed framework is expected to pave the way for a more transparent, data-oriented and scientifically credible environmental governance structure capable of addressing emerging conservation challenges more effectively.

The government expects the new mechanism to support the implementation of practical and scientifically robust programmes aimed at safeguarding Sri Lanka’s ecological future while enhancing cooperation between state agencies and the country’s growing community of environmental researchers.

 

By Ifham Nizam

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Back home … for a special occasion

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Seven Notes: Sri Lankans based in Dubai – with Niluk (second from left)

Niluk Uswaththa, of Seven Notes fame, based in Dubai, surprised many when he and his wife Apeksha, turned up in Colombo, last week … unannounced.

Yes, they had a purpose in their surprise visit … to wish Apeksha’s mum for her birthday, which was on Monday, 18th May, and what a surprise it turned out to be!

In an exclusive chit-chat with The Island, Niluk said that the scene in Dubai is improving and Seven Notes do have work coming their way.

Since the members of Seven Notes are all employed (doing day jobs), they operate only on Saturdays and Sundays.

Niluk: Didn’t come prepared to perform, but obliged
friends in Galle

In fact, to get to Colombo for the birthday surprise (on Monday, 18th May), the band had to skip their 17th May, Sunday gig.

“Although it’s a short vacation, my wife and I are enjoying the setup here,” said Niluk, adding that they spent two days in Galle and that their next destination is Anuradhapura.”

Niluk didn’t come prepared to perform, but he obliged the crowd present, at a friend’s birthday celebrations, in Galle, singing and playing guitar.

They are scheduled to leave for their home, in Dubai, in the first week of June.

Seven Notes is an outfit made up of Sri Lankans and the band has been around for almost nine years.

Niluk came into their scene nearly seven years ago.

“When I went to Dubai, I had offers coming my way but it was Seven Notes that impressed me because of their acoustic style.”

The Dubai’s entertainment scene is showing clear signs of bouncing back and even levelling up in the next few months.

Niluk and Apeksha: Enjoying their short vacation

After a slowdown earlier this year due to regional tensions, shows and festivals are back on the calendar, and organisers say late 2026 could be the busiest concert season in years.

Time Out Dubai says “the 2026 concert calendar is filling up nicely” and “the city is ready to party once again” after some reschedules.

Dubai Summer Surprises in July brings retail activations, comedy nights, and indoor art exhibitions.

Organisers point to a backlog of postponed events that are being rescheduled for late 2026 and early 2027.

Yes, Dubai is calm on the surface but on alert. Life is mostly normal in the city, but there’s a “balancing act” as people watch for escalation.

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