News
‘Runaway cost of living: Govt. rendered itself impotent by doing away with price controls’
Ex-CAA official: “Trade, Consumer Protection ministries reduced to nameboards’
By Shamindra Ferdinando
Co-operative Services, Marketing Development and Consumer Protection State Minister Lasantha Alagiyawanna said that the government could not interfere with the Milk Food Importers’ Association decision to increase the prices of imported powdered milk.
The SLFPer pointed out that price control on imported milk food had been done away with in early November. Therefore, the Consumer Protection Ministry couldn’t interfere with their decision, the Gampaha District lawmaker said, adding he was informed of the price increase.
MP Alagiyawanna said so when The Island sought his response to the Milk Food Importers’ Association announcement on Thursday (30) as regards the price increase with effect from Dec 30 midnight. According to their spokesperson Asoka Bandara, the price of a kilo of packeted milk powder would cost Rs 1,345 and 400 grammes pack Rs 540.
State Minister Alagiyawanna said that a kilo of imported milk powder and 400 grammes pack had cost Rs. 1,195 and Rs 480 before.
State Minister Jayantha Samaraweera on behalf of the National Freedom Front (NFF) recently urged the government to re-impose price controls or face the consequences. Lawmaker Samaraweera alleged that duty concessions that had been granted to various importers, including the Milk Food Importers’ Association didn’t benefit the consumers. The Kalutara District MP cited the reduction of duty on imported sugar in Oct 2020 as a case in point.
Having imposed emergency regulations that had been imposed on Aug. 30, 2021 to prevent hoarding and the termination of the Office of Commissioner General of Essential Services, the government on Nov 04, 2021 removed the retail price cap on several essential commodities through a gazette notification. The retail prices of dhal, sugar, sprats, green gram, potatoes, big onions, canned fish, chickpeas, wheat flour, full cream milk powder, dried fish, coconut, chicken and maize were removed.
The new gazette notification has also removed the maximum price limit of Rs. 1,500 for a 400g packet of sausages and Rs. 1,500 for a kg of mackerel. In addition to that the Special Commodity Levy of Rs.65 per kg of imported rice has been reduced to 25 cents for the next six months.
As per the powers vested in terms of the section 2 of the Public Security Ordinance, President Rajapaksa declared emergency regulations formulated as per the section 5 on essential food supply, with effect from midnight August 30, 2021.
Authority (CAA) Thushan Gunawardena questioned the justification of maintaining the Consumer Protection Ministry as well as the CAA at the taxpayers’ expense in the absence of what he called price control mechanism. “Consumers are fleeced. The government brazenly provides tacit support to unscrupulous business enterprises. On one hand, duty concessions are granted. And on the other hand price controls are done away with. The hapless public has no protection at all,” Gunawardena said.
The cabinet minister in charge of trade Bandula Gunawardena and State Minister of Consumer Protection Alagiyawanna should quit because they were jobless, Gunawardena said adding that there had never been a previous instance of any particular government altogether abolishing price controls.
Outspoken ex-official Gunawardena said that the appointment of a senior serving army officer Maj. Gen. M. D. S. P Niwunhella as Commissioner General of Essential Services for a short period was nothing but a joke. Gunawardena pointed out that having targeted some of those who hoarded sugar and rice and promised an uninterrupted supply of essential items at a reasonable price, the government had done away with price controls, abolished the Office of Essential Services and reduced the trade and consumer protection ministries to just name boards.
Responding to another query, Gunawardena pointed out that the recent media statements that had been attributed to State Minister Samaraweera revealed that the government had done away with price controls without consultations with constituents of the ruling coalition. “In fact, the current dispensation does not seem to believe in proper consultations as regards any matter. There cannot be a better example than the Yugadanavi Power plant share sale agreement,” Gunawardena said.
Asked what the government would do in case the Milk Food Importers’ Association exploited the consumers, State Minister Alagiyawanna said that the government could always resort to price controls. Asked to explain, the lawmaker said that in the case of milk food prices, before the association decided on Rs 150 per kilo increase, it was sold at Rs 1,195. “We are in a position to ascertain how the world market prices as well as shipping charges are impacting on imports,” MP Alagiyawanna said.
News
PSTA worse than PTA: FSP
The Frontline Socialist Party (FSP) yesterday accused the government of seeking to use the proposed Protection of the State from Terrorism Act (PSTA) to suppress popular political activity, claiming that some of its provisions were more repressive than those of the Prevention of Terrorism Act (PTA).
FSP Education Secretary Pubudu Jayagoda told a media briefing, in Nugegoda, that the definition of terrorism in the Bill was so broad that it could be used to label almost any form of popular political activity as terrorism.
He said the Bill’s approach to defining terrorism was based largely on attempts to compel a government, or an international organisation, to do, or refrain from doing something, rather than on internationally recognised criteria, such as killings, causing serious bodily harm, kidnapping or acts intended to spread terror among the public.
Jayagoda also alleged that the Bill transferred substantial powers from the judiciary to the executive, while extending powers of arrest, investigation and detention to the armed forces, in addition to the police.
He claimed that the government had sought to portray the Bill as a replacement for the PTA while retaining or introducing provisions that could facilitate political victimisation and repression.
The FSP also questioned the government’s decision to proceed with the Bill, despite having previously sought public views on an earlier draft.
Jayagoda said a draft had been published earlier this year, with the period for public submissions ending on February 28, but the Bill subsequently gazetted was essentially the same draft with some provisions rearranged.
Jayagoda also referred to a letter reportedly sent by Attorney-at-Law Saliya Peiris, a member of a Committee, chaired by President’s Counsel Rienzie Arsecularatne, that had been appointed to draft the legislation. He said Peiris had stated, in the October 06 letter, that changes had been made to the draft prepared by the Committee.
“This means that even the Committee, appointed to prepare the Bill, was a deception,” Jayagoda alleged.
He said that the PSTA was fundamentally similar to the Anti-Terrorism Bill introduced by the previous government, in 2023, which the National People’s Power (NPP) opposed and challenged in court.
“If the NPP opposed that Bill then and is now bringing the same legislation before Parliament, the government must explain its position,” he said.
Jayagoda called on NPP MPs to oppose the PSTA in Parliament and urged trade unions and other groups to build a broad public movement against the legislation.
He challenged the government to an open debate on the Bill.
News
Shiranthi R remanded until 13 Oct.
Former First Lady Shiranthi Rajapaksa was yesterday remanded until 13 October after being produced before the Colombo Magistrate’s Court following her arrest by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC).
Shiranthi, wife of former President Mahinda Rajapaksa, was arrested at her residence on Poorwarama Road, Kirulapone, after CIABOC officers recorded a statement from her for nearly two hours.
According to the CIABOC, the arrest was made over allegations that Rs. 10 million obtained from the National Savings Bank through the Siriliya Saviya organisation was misappropriated.
The money was allegedly obtained to provide a Computed Tomography (CT) scanner to the children’s hospital. Investigators allege that the scanner was not provided and that the funds were instead unlawfully used.
CIABOC is investigating alleged offences under the Public Property Act and corruption-related provisions in connection with the transaction and other financial activities involving Siriliya Saviya, which was headed by Rajapaksa.
Rajapaksa returned to Sri Lanka on Monday night on a flight from Malaysia after travelling overseas for medical treatment. She left for Singapore on 16 September after being admitted to a private hospital in Colombo on 15 September following an illness.
She had been due to appear before the Financial Crimes Investigation Division (FCID) on 13 October in connection with its investigation into the financial affairs of Siriliya Saviya.
Meanwhile, her lawyers filed an anticipatory bail application before the Maligakanda Magistrate’s Court on Monday, seeking an order preventing her arrest in connection with the FCID investigation.
News
Former NSB Chairman Kariyawasam granted bail
Former National Savings Bank (NSB) Chairman Pradeep Kariyawasam was yesterday granted bail by the Colombo Magistrate’s Court following his arrest by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC).
Kariyawasam, husband of former Chief Justice Shirani Bandaranayake, was arrested in connection with the Bribery Commission’s investigation into the ‘Siriliya Saviya’ account linked to former First Lady Shiranthi Rajapaksa.
The investigation concerns financial activities involving the Siriliya Saviya initiative, which was headed by Rajapaksa, wife of former President Mahinda Rajapaksa.
CIABOC is continuing investigations into the alleged financial irregularities relating to the account.
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