Surviving the Christmas While Poor
Seasonal Surprises and Shocks
Like the people all over the world, Sri Lankans were deprived of merry making on the Christmas day and ensued seasonal celebrations for two years. So, Sri Lankans irrespective of their faith were looking forward eagerly to celebrate this universal holiday on a high note this year. On the threshold of intended celebrations, their dreams were shattered at the eleventh hour with an unexpected fuel hike that the Government of Sri Lanka imposed by a midnight gazette. Accordingly, Petrol and Diesel prices have been increased by Rs 20/- and Rs 10/- respectively. Similarly, 95 petrol liters was increased by a staggering Rs 27/-. And even Kerosene price was not spared. This was seen as an unpopular and unprecedented move by the Government at this juncture while people were hard pressed to make their ends meet. True that the Government is facing its worst economic crisis of the century with depleted Dollar reserves in its coffers. Virtually, the Government has no funds to buy fuel by the turn of next year. Meanwhile, on Christmas Eve, a crowd of people in the Nugegoda area just wanted to feast on egg hoppers. So, they set about finding a place for the purpose but couldn’t, to their dismay. They were told by restaurateurs that they could no longer make hoppers for the absence of Gas cylinders in the market. Dearth of Gas cylinders is a burning issue in local households today, making people turn to alternative cooking methods such as wood and kerosene fired stoves. People are now left with fears and doubts about the country’s future as its fragile economy is on the verge of collapse.
People’s bone of contention
People are rather disappointed and disturbed over the ad hoc policies employed by the Government. The general feeling among the people is that the Government is not concerned about the plight of the suffering citizens. The people think that the full burden of Government’s woes are unreservedly passed on to them directly and the Government or the opposition are doing little or nothing to ease off the economic burden of the general public. Meanwhile, politicians are indulging in their usual luxurious lifestyle regardless of people’s pain and anguish. They point out that they can’t afford to buy even a fraction of vegetables in the face of skyrocketing prices. Shortages of essential commodities are commonplace in the market, worsening people’s plight to an unprecedented level. On top of everything, people, especially young ones are queuing up to migrate in search of greener pastures. It is a chaotic situation that prevails in the country at present. However, the Government doesn’t seem to cut down expenses on unnecessary tamashas. The classic example is that the Government has allocated Rs 2 Billion to construct new jogging tracks island-wide. 27 such projects are underway at present. The people feel that the Government should backtrack such non-essential development projects to bring relief to people instead. The Government doesn’t seem to be in control over anything as it appears today. This is signified by the fact of the Government’s decision to impose a ban on chemical fertilizer varieties in the middle of a crisis. This has impacted on paddy cultivation and Tea plantations in a big way. It is speculated that the prices of rice may even rise to Rs 400/- Rs 500/- per Kg in the first quarter of the next year.
Fear of a famine
The Government is in an economic crisis as never before in contemporary history. The opposition politicians including former Prime Minister Ranil Wickramasinghe have urged the government to go for an emergency facility with the International Monetary Fund (IMF), in a bid to salvage the ailing economy and stabilize it. So far, the Government has not shown any interest to proceed with the IMF option for the obvious reason that if the Government ever does it, it will be restrained by the terms and conditions of the IMF. In other words, the Government cannot play around with the funds thus released. The Government wants a freehand to spend funds at their discretion. The Government’s objective is to raise funds and reserves through loans and Dollar swaps with friendly countries in the region and Middle East countries. Whether the Government will succeed in its effort, is a million dollar question which nobody has a clue about. The Government is looking at India, Pakistan and Bangladesh in particular in this endeavor. In the event, the regime fails to raise funds, the future of the country will surely be doomed. Some unbiased economists and independent analysts opine that there is a likelihood of even a famine if the Government doesn’t act fast and prudent at this crucial hour. So, the Government needs to be very serious about the looming bleak situation to get the country on the right track in time. On the positive side, Hon. Basil Rajapakse, newly appointed Finance Minister is optimistic that the Government could be equal to the task. Recently, in an interview with a national newspaper, he stated that he would raise US$ 3 Billion by the first quarter of the next year as foreign reserves. He made an official visit to India recently with this objective in mind but tangible dividends are yet to come.
Vistas of prosperity
Two years ago, the Government of Gotabaya Rajapakse swept into power with a flamboyant manifesto named ‘Vistas of Prosperity’. In spite of all these problems and issues, the Government seems to be enthusiastic in achieving development objectives spelled out in the manifesto. But, the Government is walking on a tightrope financially right at the moment. Many economists are of the opinion that the Government should change its strategy and focus on the current situation rather than accomplishing what is said in the manifesto. This is rather an unexpected predicament that came into being with the deadly Covid -19 pandemic which still haunts the nation in peril. Basically, the Government should bring in drastic changes thereby cutting down expenses on unnecessary projects and spending sparingly only on essentials. If the Government doesn’t act wisely at this hour of crisis, it is inevitable that Sri Lanka will be a failed country after 73 years of independence. But, Sri Lankans will not be ready to accept it at the expense of Gotabaya Rajapakse Government and it will be the end of Rajapakse political lineage as well because this regime consists of 5 ministers from Rajapakse family, handling 64 % of the national budget.
