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Stop excessive money printing to avert a far worse crisis – SJB

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‘The only way prices can be controlled is not by gazette or emergency rule, but via the market itself’ 

In principle price controls fail, and they create shortages and black markets. The only way prices can be controlled is not by gazette or emergency rule, but via the market itself, says top Samagi Jana Balavegaya spokesman and economist Dr. Harsha de Silva.

Issuing a statement in the wake of the government doing away with price control, Dr. de Silva has said: “To do so, the reason why prices are increasing must be determined. Is it a temporary increase due to a supply shortage, say a drought or flood or is it because aggregate demand has increased due to increased money supply? The answer will depend on what is causing prices to rise.

“In the case of Sri Lanka, the massive expansion of money is the cause for continuous increase in prices or inflation. This is the reason for the rapid depreciation of the currency as well. The only short-term solution to reduce this excessive rate of money growth is to stop excessive money printing. If monetary accommodation is continued inflation could turn into hyperinflation and further depreciation of the currency leading to serious social unrest.

“However, the reality is that much of the population cannot bear the increasing costs. It is not a secret that middle-class families have had to cut down on expenses. The situation among the low-income families is a lot worse. People have had to give up meals. It is the responsibility of the government to ensure people don’t starve due to the total mess up of the economy by the politicized Central Bank that continuously ran its printing press a la modern monetary theory that was bound to fail. It is imperative that an income support mechanism be implemented for the most vulnerable immediately. This can be implemented via the Samurdhi scheme even though it is nowhere near ideal.

“Beyond the short term and in a more stable macroeconomic environment, we need to be more productive. For instance, accurate information on weather, better use of technology, application of right amounts of fertiliser, efficient storage and logistics would help improve the supply of agricultural produce. Similarly, the productivity must increase in manufacturing and services.

“In the meantime, the government must correct market failures by appropriate regulation to foster competition in the market. Take for instance the rice market. While there is more than enough paddy harvested there is a huge shortage of rice. That is because the rice manufacturing market has been captured by a few big millers and competition has been wiped out. The way to correct that market failure is to empower the hundreds of SME rice millers by providing them working capital and get their supply into the market. Instead, the government has now decided to import rice to control the prices. This wrong policy will make the problem worse, from market failure to government failure. When imports are stopped, all the SME millers would be out of business the big players will completely dominate the market.

“The SJB believes in a social market economy where competition will be encouraged with necessary amount of regulation to maintain a stable market. We will ensure that all parties to a transaction, the firm or the investor, the worker or the farmer and the regulator or government would together arrive at sustainable equilibrium so that longer term growth with equity could be maintained. However, given that the economy is in such dire straits, the truth must be told to the public that there is no free lunch and we as a nation will have no option but to work hard to a plan. And that plan will call for significant economic reforms and integrating Sri Lanka with global production networks. The resulting export-led growth, as opposed to the current import-substitution led growth, would significantly elevate living standards of our people while allowing for sufficient funding to provide safety nets for those in need.”



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Lankan aircrew fly daring UN Medevac in hostile conditions in Africa

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Lankan Air Force personnel rescuing a UN personnel at Zemio in Central African Republic

The Sri Lanka Aviation Unit operating under the United Nations (UN) mandate in the Central African Republic (CAR) has successfully carried out a critical Casualty Evacuation (CASEVAC) mission, under extremely hostile and volatile conditions.

The mission had been launched in response to an urgent request to evacuate two United Nations personnel who had sustained combat-related injuries in the Zemio area, the Sri Lanka Air Force (SLAF) said.

Accordingly, the evacuation has been conducted using a Mi-17 helicopter (UNO 325P).

The aircraft was captained by Wing Commander Nelson De Silva, with Flight

Lieutenant Arunoda Ekanayake serving as co-pilot.

The aircrew comprised Squadron Leader Sandeepa Wijayathunga, Sergeant WCN Senevirathne, and Corporal DVPM Rodrigo. The Aeromedical Evacuation Team included Group Captain Sujith Perera, Flight Sergeant KW Sumedha, and Flight Sergeant RDH Karunadasa, who provided critical in-flight medical care to the casualties, the SLAF stated.

The extraction site was located approximately 20 kilometres northeast of the Zemio Permanent Operating Base (POB) and posed significant operational challenges.

They included extremely dusty landing conditions, an unstable and rapidly evolving tactical environment, and the requirement for a precision landing under constant threat, the SLAF said.

Despite these constraints, the aircrew demonstrated remarkable courage, sound judgement, and outstanding airmanship throughout the operation.

A comprehensive threat assessment conducted by the aircraft commander, taking into account the critical condition of the casualties, reflected exceptional adaptability and operational decision-making, the statement added.

According to the SLAF, the total flight duration of the mission was one hour and 45 minutes. The injured personnel were safely evacuated from the hostile location and successfully transported to Bangui for advanced medical treatment.

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Lanka to observe National Safety Day today

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Sri Lanka will mark National Safety Day today (26) with countrywide religious observances, a national moment of silence and the main state commemoration at the Peraliya Tsunami Memorial in Galle, officials said yesterday.

The annual observance, declared in the aftermath of the 2004 Indian Ocean tsunami that claimed over 35,000 lives and left more than 5,000 people missing, is held each year to honour victims of the tsunami and other disasters, while reinforcing public awareness on disaster preparedness.

Disaster Management Centre (DMC) Director General Retired Major General Sudantha Ranasinghe said the 2025 programme would be conducted with due consideration to prevailing weather conditions caused by the Ditwah cyclone, with district-level multi-religious observances planned across the country.

“National Safety Day is a moment of remembrance and reflection. It also reminds us of the importance of preparedness, early warning and community resilience,” he said.

The main national commemoration will take place at the Peraliya Tsunami Memorial from 8.30 a.m. to 11.00 a.m., with the participation of government representatives, religious leaders, disaster survivors and families of victims.

Secretary to the Ministry of Defence Air Vice Marshal (Retd) Sampath Thuyacontha said a two-minute silence will be observed nationwide from 9.25 am to 9.27 am today, in memory of all those who lost their lives to the tsunami and other disasters.

“All institutions and members of the public are requested to observe this moment of silence as a mark of respect and national solidarity,” he said.

DMC Additional Director General Pradeep Kodippili urged the media to provide wide coverage to the main commemoration in Galle as well as district-level programmes organised through District Secretariats.

“Media support and public participation are essential to ensure that the lessons of past disasters remain alive and that a culture of safety is strengthened across the country,” Kodippili said.

National Safety Day has been observed annually on December 26 since 2005.

By Ifham Nizam ✍️

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Street vendors banned from Kandy City

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Mayor Chandrasiri Wijenayake

All forms of street vending within the Kandy Municipal Council area will be banned from January 1, Mayor Chandrasiri Wijenayake has said.The Kandy Mayor said the decision had been taken as part of efforts to preserve it as a clean and aesthetically pleasing city and to allow the public to move freely while enjoying its surroundings.

He said the ban would apply not only to streets in the city centre but across the entire municipal council area. The move, he added, follows long-standing public requests for a more systematic regulatory framework within the Kandy urban area and is aimed at ensuring public convenience and welfare.

Wijenayake stressed that the decision would be implemented without reversal.

The Kandy Municipal Council has already issued formal notices to pavement vendors directing them to cease operations. Street vendors had requested a three-month grace period to relocate, which will expire on December 31.

By S. K. Samaranayake ✍️

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