Govt. needs to provide relief to vulnerable groups

 Opposition Leader Sajith Premadasa has been leading the call for the Government to provide relief to those in low economic groups in the country in the wake of rising costs of goods and services. He suggested that funds from the Treasury should be diverted to grant relief packages to the needy, as was done during the COVID-19 pandemic as well as during the economic crisis of 2022.

Other Opposition lawmakers too have made similar appeals to the Government. SJB MP Mujibur Rahuman noted that the increase in oil prices directly affects industries and production in all sectors of the economy, and the Government should intervene and resolve their problems.

So far, the Government has resisted granting any special benefits to the needy, but it will not be able to withstand public pressure for long, as rising costs are putting an additional burden on a population that is already feeling the pinch of the conflict engulfing the Middle East and Gulf States.

As was the case during COVID-19, on the back of which bad policies by the then Government led to the collapse of the economy, Sri Lanka is once again facing a dire situation. On the back of Cyclone Ditwah, the ongoing conflict is beginning to have a serious impact on the country.

According to the Minister of Rural Development, Social Security and Community Empowerment, Upali Pannilage, one-fourth of Sri Lanka’s population is currently living in poverty, with nearly 80% of those affected residing in rural areas.

He noted that ongoing military tensions in the Middle East have had a certain impact on the global economy, but the current Government’s policies would help tide over the conflict with minimum impact on Sri Lanka.

Despite his optimism, it is becoming clear that the Government was not prepared to handle such a situation, particularly coming on the heels of a devastating cyclone. In such situations, where there is a global economic meltdown, it is always the citizens of poor nations who suffer the most.

For Sri Lanka, instability in the Gulf States is a major blow, given that nearly 1.3 million Lankans live and work in the region. On top of that, disruption to airline services through the region has led to tourism being dealt a big blow. Sri Lankan imports and exports have both been impacted, while rising fuel prices are leading to the inevitable rise in goods and services.

Food prices have already gone up, with public transport, three-wheeler and taxi fares also increasing. Electricity rates are also likely to increase soon, as the country faces power cuts in the days ahead, while recent drought conditions could also lead to water cuts, the relevant authorities have warned. A fertiliser shortage also looms large due to the conflict.

When President Anura Kumara Dissanayake presented the Budget in November 2025, he was upbeat, stating that there had been a steady recovery of State revenue and the restoration of macroeconomic stability, but he warned that as an economy heavily dependent on imports, Sri Lanka remains vulnerable to global shocks.

The global shocks have now become a reality, and it is time for the Government to use funds from the Treasury to provide immediate relief to vulnerable groups. Otherwise, there could be a repeat of 2022, with the poor getting poorer, social unrest becoming rampant, and the country’s vital sectors such as health, education and social welfare suffering further damage.