Sunday Dec 15, 2024
Sunday Dec 15, 2024
Thursday, 25 August 2022 01:44 - - {{hitsCtrl.values.hits}}
SJB Parliamentarians Eran Wickramaratne, Kabir Hashim and Dr. Harsha de Silva at yesterday's media briefing - Pix by Lasantha Kumara
By Darshana Abayasingha
The main Opposition Samagi Jana Balawegaya (SJB) yesterday claimed that price controls were not the answer to combat soaring inflation and questioned President Ranil Wickremesinghe-led Government’s strategy to ensure quicker recovery from the worsening crisis.
The Government’s attempt to control inflation with price controls lead to supply issues that will further impact consumers, said the SJB’s Eran Wickramaratne during a briefing by the party’s economic team comprising MPs Dr. Harsha de Silva and Kabir Hashim.
He pointed to the Government Gazette last week limiting the price of eggs, and noted this too will have to be reversed similar to the 13 gazettes published earlier to try to control the price of rice.
Wickramaratne said rampant food inflation in the country is affecting the middle class in particular, as the quality of food intake is severely impacted amidst reports over 6 million households are limited to just one proper meal a day.
Price...
Referring to economic reform proposals shared in Parliament by the SJB last week, Wickramaratne questioned what the Government’s plan was to address supply issues in the country. He pledged the SJB’s fullest support to the Government to enact necessary economic reforms and combat corruption.
His views were echoed by MP Harsha De Silva who said a number of reforms are already under way in support of an IMF bailout program. This includes electricity price hikes, the increase in the price of kerosene and others.
However, De Silva noted the impacts of these price hikes are discriminatory and often place significant burdens on poorer segments. He stressed the need for a stringent and equitable program of cash transfer to vulnerable segments to shield them from sudden price hikes.
“The IMF is presently here for discussions and the Government hopes to achieve a Staff-Level Agreement by the end of this visit. However, the Central Bank Governor revealed that the Government is yet to begin discussions with creditors, and this would be done after a Staff-Level Agreement.
“But in order to achieve a Staff-Level Agreement, Sri Lankan must propose how it will achieve debt sustainability. This is a worrying situation. So, we hope for better transparency on the Government’s plan with engagement. These discussions with the IMF are critical for the country’s economic revival, and we will lend our support in every possible manner,” De Silva said.
SJB MP Kabir Hashim noted that despite action taken by the Central Bank to curb runaway inflation, which in turn contracts the economy, the cost of living continues to escalate at an alarming rate. “There is a huge disparity between supply and demand. We have to strengthen domestic production especially with food and the Government must support that initiative at all costs,” he said.
He called on the Government and the subject minister to afford necessary fuel and other requirements to the agriculture sector to boost production.
He added that kerosene has historically carried a massive subsidy as it was widely used by households and the fisheries sector. But with 99% of households powered by electricity and a significant portion using cooking gas, the supply of kerosene should be better targeted. He revealed that several large industries use kerosene instead of diesel for machinery and achieve huge cost increases.
The SJB MPs also denounced the use of the PTA to crack down on peaceful protestors, and called on the Government to take necessary action against aggressors on all sides employing common law. The country cannot normalise if the Prevention of Terrorism Act is used alongside other draconian regulations to handle such issues, they said.
