Author: TELO Admin

Sri Lanka’s food prices rose by a record 22.1 per cent in December, official figures showed Saturday (Jan 1), as the country struggles to finance urgent imports to tackle an acute shortage of essentials.

The census and statistics department said food inflation hit an all-time high last month on a year-on-year basis since the Colombo Consumer Price Index (CCPI) was launched in 2013.

The price increases in December compared to a figure of 17.5 per cent in November, the previous record, the department said.

It added that overall inflation was also at a record 12.01 per cent in December, the highest since the CCPI index was launched.

President Gotabaya Rajapaksa in his New Year message expressed hope of reviving the cash-strapped economy but did not announce measures to address the crippling foreign exchange crisis.

“I am confident that the new year will provide an opportunity to further the steps taken by the government to pursue and overcome challenges and strengthen the people-centric economy,” he said.

International rating agencies have downgraded Sri Lanka and raised concerns about its ability to service its debt of US$26 billion.

The latest inflation figures were released a day after the government increased the price of milk powder by 12.5 per cent following a similar rise in fuel prices last month.

The island’s tourism-dependent economy has been hammered by the pandemic and the government was forced to impose a broad import ban to shore up foreign exchange reserves.

Supermarkets have for months been rationing milk powder, sugar, lentils and other essentials as commercial banks ran out of dollars to pay for imports.

A top agricultural official warned last month of an impending famine and asked the government to implement an orderly food rationing scheme to avoid such a scenario. He was fired within hours of making the appeal.

Food shortages have been worsened by the government’s ban on agrochemical imports, which was lifted in November after widespread crop failures and intense farmer protests.

Sri Lanka had foreign reserves of just US$1.58 billion at the end of November, down from US$7.5 billion when Rajapaksa took office in 2019.

This week the government drew down a US$1.5 billion Chinese loan and claimed reserves had nearly doubled to US$3.1 billion by the end of 2021.

The central bank has appealed for foreign currency – even loose change that people may have after returning from overseas trips.

President Gotabaya Rajapaksa says that the government has assured through actions that Sri Lanka’s ancient Buddhist heritage sites are safeguarded and that it will continue to provide patronage to protect the country’s values, traditions and customs.

He made these observations while addressing the Maha Sangha during a ceremony held on Sunday to bestow him with the honorary title of “Sri Lankadheeshwara Padma Vibhushana” by the Kotte Sri Kalyani Samagri Dharma Maha Sangha Sabha.

“Before I became the President, we all knew how the condition of our Buddhist sites like Kuragala, Muhudu Maha Vihara and Deeghawapi was, how the monks who lived there were treated and the fate of the lands belonging to those temples. We all can be happy about the current state of those temples.”

“During my tenure, we have assured with action that our ancient Buddhist heritage sites are safeguarded,” he said.

The President said they were able to successfully control the pandemic that engulfed the world for two years. “However, even if some people insulted me because of the economic and social hardships the pandemic has caused to the people of this country, I have the strength to endure such insults with equanimity.”

“Also, those who insult me have not been able to do an iota of the service I have performed to the country in my lifetime,” he stressed.

He pointed out that the ‘Kroda Wagga’ in Dhammapada says that there is no person in this world who has received either only insults or only praise.

President Rajapaksa pledged to protect and nurture the Buddhist philosophy in this country. “We must always protect the Sinhala culture and heritage that has a history of thousands of years. Therefore, the government will continue to provide patronage to protect our values, traditions and customs.”

He said he will always uphold the right of all Sri Lankans to live in peace and harmony by preserving their religious identities and to live with dignity in association with the main culture of this country that persisted throughout the history.

“I am ready to embark on a new journey by overcoming the obstacles we have encountered so far, and to fulfill the aspirations of the people who elected me as President of this country.”

“I responsibly declare before this Most Venerable Sangha community that I am ready to take any tough or bold decisions that need to be taken in this regard,” he emphasized.

The Sri Lanka Railway Station Masters’ Union (SLRSMU) has alleged that the Railways Department is continuing to postpone the resumption of long-distance train services that were suspended due to the Covid-19 pandemic situation, thus causing great inconvenience to passengers.

Speaking to The Morning yesterday (2), SLRSMU General Secretary Kasun Chamara charged that the Railways Department has not yet taken action to resume long distance train services which had been cancelled for a prolonged period due to the Covid-19 pandemic.

“Due to the pandemic situation in the country, long distance train services have not been operational for more than a year. As the Railways Department was covering up the matter under the guise of Covid-19, we had to even engage in a trade union action demanding the resumption of long distance train services,” he said.

Chamara said that despite the Railways Department’s announcement that long distance train services would be resumed from 1 January 2022 in the face of the SLRSMU’s trade union action, it was postponed to 2 January and the Railways Department has failed to resume the said service on that day as well. He claimed that the resumption of long distance train services has once again been postponed till 9 January.

“It has become a joke for the Railways Department to provide transport facilities to the passengers. Even though the Department has announced that they would be resumed on 9 January, we cannot believe what the authorities are claiming,” stated Chamara.

Claiming that the Railways Department had stated it was unable to operate long distance train services due to a shortage of engine driving assistants, he said that it is the responsibility of the Railways Department to address the issues, if any.

“The Railways Department from time to time announces the start dates of long distance train services. After hearing such, the people come to the railway stations to make seat reservations. At that time, it is us who have to answer the passengers,” Chamara further charged.

When contacted by The Morning to inquire about the plans to resume long distance train services, Railways General Manager Dammika Jayasundara said that there was a shortage of railway guards and engine driving assistants which has resulted in the delay in resumption of the said services. However, he said that immediate steps will be taken to recruit the railway guards and engine driver assistants under contract basis, after which the long distance services will be resumed.

Samagi Jana Balawegaya MP Dr Harsha de Silva questioned as to why the Government cannot issue dollars to release the containers with essential items which are halted at the Port.

Speaking on the current economic crisis in the country, MP Dr de Silva said that the public is currently suffering due to the shortage of essential items and medicines, and since the Central Bank of Sri Lanka (CBSL) announced that the country’s reserves have grown to 3.2 billion US $, why it is not possible to import goods now.

” Why are they hiding the country’s dollars? To whom are they going to issue dollars? The market price of the bonds that were to be matured in January has dropped so much that the return on investment is 800% now.,” the MP stated.

Mentioning that people are suffering due to shortages in medicine, gas and fertilizer, the MP pointed out that even Importers have stated that they will not import goods again, in addition to shipping companies demanding payment in dollars.

Sri Lanka Sunday reported 24 deaths due to COVID-19 after the figures were confirmed by the Director General of Health Services on Saturday, January 01.

Among the deaths reported today, 20 are of males and 04 of females. While 13 deaths are of elderly people in the 60 years and above age group, 11 people in the 30-59 years age group have also succumbed to the disease.

According to the data reported by the Government Information Department, the total deaths due to Covid-19 since the pandemic began last year has now risen to 15,019.