Category: News

Half of families in Sri Lanka are forced to reduce the amount they feed their children, according to a survey by Save the Children, as the country’s economic downturn spirals further into a full-blown hunger crisis nearly a year after the government defaulted on its debt.

The government and international community must act now to prevent the country’s children from becoming a lost generation, the child rights organisation said.

Since the Sri Lankan government defaulted on its debt nearly a year ago, soaring inflation and food, medicine and fuel shortages as well as a lack of stable employment have left families unable to cope. The country has the seventh highest nominal food inflation rate in the world, according to the World Bank[i] , with year-on-year inflation in the country more than 50%.

Save the Children’s latest survey of 2,308 households across nine districts in Sri Lanka found that due to this inflation, average household expenditure increased by 18% between June and December last year. During this time there was a 23% increase in households unable to meet most or all of their general basic needs, Save the Children said[ii].

Because of this, over the past six months, more families have had to resort to desperate measures to survive, with a 24% increase in households saying they had resorted to borrowing money in order to cover household expenses[iii] ; a 24% increase in households saying they had to purchase food on credit[iv]; and a 28% increase in households selling household items for cash[v].

Female-headed households are particularly vulnerable, Save the Children said, as women are increasingly at risk of trafficking or exploitation, working overtime and in some cases migrating for work. This in turn puts children at risk as they are left alone, according to the child rights organisation.

While half of households said they are cutting their children’s food intake, 27% reported adults skipping meals to feed their children. Nine out of ten households said they cannot guarantee nutritious food for their children.

Suren* and Preethika*, from Colombo, struggle to provide a well-balanced meal for all three of their children. Even simple nutritional foods, such as eggs and yoghurt, have become too expensive for the family to afford, limiting the items they are able to feed their children. On most days, they are forced to prioritize their toddler’s nutrition.

Their 11-year-old daughter Thisuri* said that she and her 8-year-old sister Ayama* now often go without things like yoghurt because their parents can only afford to provide it for their one-year-old sister, Hiruni*.

Thisuri* said: “We really like to eat yoghurt too, but most of the time my parents can only afford to buy yoghurt for my youngest sister. Whenever they have extra and can afford it, they buy the two of us yoghurt too.”

“Things are so expensive in shops now. It was never like this before.”

The survey also found that 70% of households lost all or most of their sources of income between June and December last year. Among these, more than half of households (54%) now source their main household income from jobs that are seasonal and irregular. This instability is putting children in the precarious position of not knowing where their next meal is coming from, Save the Children said.

Julian Chellappah, Save the Children’s Sri Lanka Country Director said: “These figures show how the crisis in Sri Lanka continues to spiral out of control and how, as with any crisis, children are bearing the brunt with their physical and mental health, nutrition and education all at risk. These children were born into hope as the country’s post-war generation – but we are in grave danger of failing them once again.”

“Parents should never have to choose who in their family gets to eat a meal. Everything we are seeing here points to a very real danger of a full-blown hunger crisis. The Sri Lankan government is giving much-needed support to some families through welfare schemes, but we need a rapid build-up of social protection systems with support from the international community. This is an emergency situation that requires an emergency response.”

All humanitarian interventions must factor in patriarchal gender dynamics of communities in order to best meet needs, Save the Children said.

Former Chairman of the Election Commission of Sri Lanka Mahinda Deshapriya has reapplied for the position.

This announcement comes at a time where applications are being called from members of the public who possess the requisite qualifications to be appointed as members of several independent commissions, including the Public Utilities Commission of Sri Lanka (PUCSL), the Human Rights Commission of Sri Lanka (HRCSL) and the Election Commision.

Deshapriya served as the Chairman of the Commission from the inauguration of the Commission in 2015 until 2020.

Meanwhile, Speaker of the Parliament Mhainda Yapa Abeywardena stated that the calling of applications for these commissions has ended, and that the relevant new appointments will be made soon.

Furthermore, the National Delimitation Committee, which was appointed with effect from 01 November 2022 until 28 February 2023, with Deshapriya as its Chairman, has requested for an extension of one month.

The request was made by the Committee from Prime Minister Dinesh Gunwardena, in his capacity as the Minister of Public Administration, Home Affairs, Provincial Councils and Local Government, and the President.

The Sri Lankan rupee further appreciated yesterday, hitting the lowest value against the US dollar since May, last year, amid the Central Bank tweaking the guidance peg.

As per the Central Bank data, the buying rate of US dollars yesterday was Rs.351.72, down from Rs.358.36 on Wednesday. The selling rate was Rs.362.95, down from Wednesday’s Rs.367.93.

The currency dealers cited the increase of daily trading band pertaining to the guidance peg from Rs.2.60 to Rs.5.00 by the Central Bank as the immediate reason that helped the rupee to appreciate against the dollar.
Following the botched free floating of the rupee in March 2022, which resulted in the collapse of the rupee from Rs.200 to Rs.360, the Central Bank repegged the rupee at 360 to the US dollar and introduced a guidance rate based on the interbank rate.

The Central Bank via a communiqué instructed all licensed bank CEOs yesterday to use Rs.358.46 as the middle spot exchange rate of the USD/LKR interbank transactions and variation margin of Rs.5.00 on either side—plus or minus—of the middle spot exchange on March 1, 2023.

It further said the rates applicable to other currency transactions against the Sri Lankan rupee should also be derived based on the new middle spot exchange rate and the variation margin.

Despite the banks being flushed with dollars, lower demand in the domestic forex market may have prompted this move by the Central Bank.

According to the banking sector sources, the average daily volume in the interbank forex market is now about US $ 42 million, compared to US $ 8-10 million in May/June 2022. In February 2018, this used to be around US $ 50 million.

Sri Lanka’s economy is in a deep contraction as a result of the tough measures introduced by the Central Bank and authorities to crush the aggregate demand in the economy by jacking up interest rates significantly to tame inflation, which had gone out of control.

As a result, there is an evident drop in importer dollar demand.

Prospects of Sri Lanka securing the envisaged International Monetary Fund bailout, recent International Finance Corporation announcement of providing US $ 400 million financing to three local banks, reduction in surrender requirement for export proceeds and higher foreign inflows to the country’s equity and bond markets may also have contributed to the recent appreciation of the rupee against the US dollar.

In addition, according to NDB Securities, forex conversions by exporters in anticipation of a further appreciation of the rupee may also have contributed for the rupee to gain.

An Adjournment Debate on the postponement of the 2023 Local Government (LG) election is scheduled to be held on 09 and 10 March.

Accordingly, the two-day debate was decided upon by the Committee on Parliamentary Business (COPB) today (01 March).

The Committee met today under the patronage of Speaker Mahinda Yapa Abeywardena , during which it was decided that Parliament will convene from 07 to 10 March.

Nearly 100 trade unions (TUs) representing several sectors including petroleum, ports, electricity, health, water supply, education, banking, and postal service are to launch a number of trade union actions including a one day token strike today (1), demanding the withdrawal of the tax policies recently introduced by the Government.

Representatives of several trade unions which represent governmental and semi-government institutions such as the Ceylon Petroleum Corporation (CPC), the Ceylon Electricity Board (CEB), the National Water Supply and Drainage Board (NWSDB), the Central Bank of Sri Lanka (CBSL), the Government Medical Officers’ Association (GMOA), the Federation of University Teachers` Associations (FUTA), the Ceylon Bank Employees’ Union (CBEU), the Ceylon Teachers’ Union (CTU) and the Ceylon Teachers’ Service Union (CTSU), which are supporting the trade union actions including the one day token strike today, commented on their plans to the media.

The Sri Lanka Freedom Employees’ Union – Petroleum Co-Chairman Jagath Wijegunaratne said that the trade unions within the CPC would fully support the trade union actions, including the one day token strike. He added that the activities pertaining to the supply of fuel could be disrupted due to the trade union action, noting that therefore, the Government led by President and Minister of Finance, Economic Stabilisation and National Policies Ranil Wickremesinghe should be held responsible for all inconveniences which may be caused to the public.

Ranjan Jayalal, who was representing the trade unions within the CEB, said: “We, the trade unions of the CEB, have expressed our full support for this struggle against the Government’s unfair tax policies and other issues which have arisen in the country at present. A crisis situation may arise regarding the maintenance of the power supply to consumers due to this trade union action. The Government should accept full responsibility for such a situation.”

The NWSDB Employees’ Union General Secretary H.D. Leelaratne told the media that they too would support the trade union action including the one day token strike today. He said that almost all trade unions of the NWSDB would launch trade union actions at every regional office of the NWSDB.

The Joint Ports’ Trade Unions’ Alliance Co-Convenor Niroshan Gorakanage said: “As we announced before, we will be launching a strike from 7 a.m. tomorrow (1 March) to 7 a.m. the day after tomorrow (2). During the strike, all operations such as the loading and unloading of goods and the movement of ships will be halted. It will definitely happen. It is not what we wanted, but what the Government needed. So, we had to make that decision.”

CBEU President Channa Dissanayake said that a total of 18 State and private banks would launch a one day token strike from this morning (1). He said that all 12 private banks which are members of the CBEU would join the strike, so that the operations of the entire banking sector would be halted today. The CBSL Employee’s Union President Sarath Ratnayake said that all trade unions within the CBSL would be collectively participating in the strike in line with the Trade Union Collective’s decision. He assured that almost 100% of CBSL employees would be participating in the strike against the Government’s tax policies.

FUTA Media Spokesman Dr. Charudaththa Illangasinghe also said that the university teachers of all State universities would join the strike today. He said that they have decided to support the trade union action as the Wickremesinghe-led Government is continuously ignoring their demands, claiming that such reforms (the tax policies in question) should be introduced in order to obtain assistance from the International Monetary Fund.

When contacted by The Daily Morning, the GMOA’s Media Committee Member, Dr. Hansamal Weerasuriya said that the GMOA, at its Central Committee meeting held yesterday (28 February) afternoon, had decided to fully support the trade union actions, but that they would not launch a strike, having realised the difficulties which would have to be undergone by the patients. “We are fully supporting the struggle against the Government’s tax policies, but we have to think of the people too. They are not responsible for what is done by the Government. Therefore, we will take action which will cause minimum inconvenience to the public. However, if the Government continues to ignore our demands, we will be taking stricter actions by next week,” he said.

Leading teachers’ trade unions including the CTU led by Joseph Stalin and the CTSU led by Mahinda Jayasinghe have also decided to support the trade union actions. They however will not engage in a strike. “We, the teachers and principals, have decided to fully support the trade unions’ struggle against the Government’s programme. If it does not heed our demands even after this, we will be left with no other option but to launch continuous trade union action,” said Jayasinghe, who was speaking at a media briefing. Meanwhile, the CTU President, Priyantha Fernando said that the teachers and principals would support the trade union actions today by wearing black attire. He said that their main demands include the complete resolution of the teacher-principal salary anomalies, the provision of a travelling allowance to teachers, the reduction of the cost of living, and the provision of the necessary financial provisions for schools without delay.

The President of the Sri Lanka Postal Workers’ Union, Chinthaka Bandara said that they too would support the trade union actions by reporting to work in black attire today. However, they would not engage in a strike action today, and have instead decided to launch a strike on 8 March.

Meanwhile, President Wickremesinghe had, on 27 February, signed a Gazette notification, declaring several services related to the ports, airports and passenger transport services as essential services, with immediate effect. According to the President’s Media Division, the special Gazette had declared public transport services for passengers or goods, the discharge, carriage, landing, storage, delivery and removal of articles of food or drink, or coal, oil and fuel from vessels within any port as defined for the purposes of the Customs Ordinance (Chapter 235), and the provision and maintenance of facilities for transport services by road, rail or air, including roads, bridges, culverts, airports, ports and railway lines, as essential services.

Holding a protest in front of the Colombo Fort Railway Station on 22 February, the aforesaid trade unions vowed to make the Government led by Wickremesinghe roll back the tax policies that it recently introduced. They had also declared a “black week” of protests from that day, demanding that the tax revisions in question be revoked, and be replaced with fair revisions. In view of the black week, employees of public institutions reported for duty in black attire, wearing black armbands, while black flags and banners had been hoisted at several State institution premises.