by Prof.Tissa Vitarana
The people continue to suffer more and more due to inflation but the Government’s response is inadequate. The price of food keeps rising while there is no increase in income. The result is that a large mass of poor are facing a grave crisis. To my knowledge a large number of families have only one meal a day. Some of them with difficulty provide two meals to their children.
Stories of children fainting in school due to hunger are widespread. There are also reports that school attendance has dropped and the education of the children is suffering. Even among lower middle class families there has been an adverse impact. The reports coming from the Medical Research Institute (MRI) and other such institutions suggest that the nutritional value of the food consumed has also deteriorated.
The MRI states that the income of more than 60% of families is below the poverty line. The current data suggest that among them the level of malnutrition is approaching 20%. This means that among children under five years of age, one out of five is malnourished. Not only is their physical development affected but also their mental development. This will have an adverse effect on the future generation.
In the face of this food crisis I appeal to the Government to give priority to addressing this problem. About a year ago I mentioned this situation to the former prime minister but there doesn’t seem to be any positive response up to now. The government should identify the families that are at risk. This can be done easily through the midwives and the public health inspectors (PHIs). The families that are at risk should be provided with dry rations, at least once a week, ensuring that essential food items reach those affected.
Even among those consuming a sufficient amount of food there is concern among nutritionists that the quality of the food from a nutritional point of view is inadequate. The high price of food which is continuing to increase (food inflation) needs urgent corrective measures. While welcoming the fact that the price of flour has been reduced by Rs.24/-, it is distressing to see that the price of a loaf of bread remains unchanged. The government should insist that bakers pass on the price reduction to the consumer. As a result of a number of problems that have arisen in the agriculture sector, like the scarcity of chemical fertilizer, the production of food, both rice and vegetables, have also reduced. There is a shortage of food according to media reports and this should be looked into and corrected.
The Paddy Marketing Board (PMB) has cut down purchasing paddy due to a lack of funds. In this context there are reports that the five main private mill owners are purchasing the paddy at a low price so that the farmers suffer. It would appear that this paddy is being stored in order to raise the market price of both paddy and rice. I have been informed that the government rice mills are also not fully operative. This situation must not be allowed to continue. I call upon the ministers and officials concerned to see that the government stocks are release to the market so that the price can be brought down. Profiteering in the food sector must be prevented by urgent government action.
Another area of concern is the shortage and high price of medicines, specially essential ones. There is an acute shortage in the government hospitals, and statements have been made by doctors that as many as 90 medicines, including essential ones, are not available. This is a very serious situation which may lead to increasing illness and even more deaths.
The government must take urgent action to see that this situation does not continue and that normalcy is restored. It is sad to see that donations of medicine have to be obtained from both local and foreign sources from countries like India, China and Japan. Adequate funds must be provided by government for the purchase of the required medicine as a matter of urgency. I have been informed that shortage of a large number of essential medicines exists both in the government and the private sectors and needs urgent attention.
The government tax policy is also a cause for concern. While indirect taxes which affect the poor are raised, the direct taxation is limited and done in a unfair manner. The middle class is being targeted while the rich and super rich are hardly affected. It is disturbing to see that the government gives tax holidays and waivers to the rich. Not surprisingly government revenue has fallen and both capital and recurrent expenditure have to be curtailed, adversely affecting the development of the country and the lives of the people.
When Sri Lanka was faced with one of its most severe economic crises in 1972/73, Dr.N.M.Perera, who was then the Minister of Finance, put the main tax burden on the rich, raising the upper limit to 70%. In today’s context too the government should take similar action by placing the main tax burden on those who can afford to pay.
The cost of transport has also gone up steeply. This directly affects passengers, but it also affects the price of goods. The lack of dollars also affects industries due to the inability to purchase essential foreign requirements, and many private and public enterprises have had to curtail production. This in turn leads to increased unemployment. The economy as a whole is contracting due to the above changes with reduced incomes of a large section of the population who are also badly affected by inflation and the high prices.
The suffering people are being forced into a situation where they have to openly protest. It is distressing to see that the Ranil Wickremesinghe – led government is strengthening the armed forces and the police. It is clamping down on reasonable peaceful protests. Are we heading for Fascist rule? This must not be permitted under any circumstances. While warning the public of the possible dangers it is essential that the trade unions become more active and warn the working and middle classes and prepare them to resist any moves to suppress the people and force them to submit to the burdens that are being contemplated.