News
‘Tis the season to be jolly – but belts are tightened
While the high cost of essential goods dampened the spirits of some during the festive season elaborate arrangements are underway in star-class hotels to usher in the New Year. Christmas decorations, including Christmas trees, went up in price by 15-20 per cent while the shortage of milk powder also hit many consumers.
The sale of Christmas trees went well. Pix by M.A. Pushpa Kumara
Food items such as meat, fish, eggs and vegetables had also increased sharply over the past few months, consumers interviewed by The Sunday Times commented. S. Anton’s family was one of many families affected by sky-rocketing prices. Anton, 47, a fisherman from the Negombo area, said his family’s Christmas celebrations centred on a visit to church and a simple meal with some sweetmeats.
“It has been this way for about three years now. We used to have a gathering with relatives and family friends at my place. The children loved this and looked forward to the day. But now we don’t celebrate at all because everything is expensive and we can’t afford a decent meal for more than seven people,” Anton said.
He recalled how the local community used to enjoy grand celebrations during the most important week of the year. “There was a time we had a party happening on at least three days during the Christmas week and yet bring in the New Year with celebrations. Can we do that now with the current costs of products, especially the food?” he asked. He shook his head.
Thirty-four-year-old Priyangi Perera, an audit accountant from Boralesgamuwa, also had a low-key celebration with her mother and brother. The family could not afford anything very special on Christmas Day.
“All the gifts I brought were those which were on discount or at the sales, and we had to cut down on gifts. Previously we gave gifts to each of my relatives and friends but this year we gave a gift per family. This helped us to save money for the Christmas food and other expenses,” she said.
Shops had mixed experiences of the Christmas sales. Mohammed Saajith, who works at a shop in Main Street, Colombo 11, noted a 45 per cent decrease in sales from last year. Mohammed said that people who came to buy glassware ended up buying plastic products because of the increase in prices.
M.N. Azmal, manager of a decoration and artificial flowers shop, said sales of Christmas decorations were down compared to last year. He said as a result of the increase in duty charged for all imports the shop had to raise the price of all products, which resulted in fewer sales.
“But the sale of Christmas trees went well. People were ready to buy our trees at any cost and we had a marginal profit from it,” he added. A leading glassware and decoration store which has its main customer base in Colombo 7 had a 30 per cent increase in sales. Manager Sangeewa Pathirana said decorations and gift items sold well.
“There is an increase of the prices of these products but that did not affect the sales. We sold 90 per cent of our Christmas goods. Cost was not a problem this year,” Sangeewa said. As the Christmas celebrations were winding down, people were getting ready to welcome the New Year. A number of events are lined up at the five star hotels in the Colombo city and across the country for the grand day.
These include theme events for 31st night celebrations, with one hotel dedicating it to the Hollywood movies with “Gatsby” themed festivities scheduled for three locations at the hotel.
Another leading hotel will have “Midnight Revelry” dances and dinner with dancing competitions and raffle draws. Leading outstation hotels were also making elaborate preparations for merriment. In addition to the main Gala Dinner on the 31st, a leading hotel in Nuwara Eliya has organised a firework display as well as the traditional milk boiling at midnight followed by a champagne breakfast. In Kandy hotels, preparations for dinner dances, buffets, fireworks and raffle draws are in full swing.
Milk stocks hoarded over price hike demands
The severe shortage of milk powder hurting families over recent weeks is being caused by distributors holding back stocks to capitalise on a price increase being demanded for the New Year, officials say. “The distributors are asking for a price increase but they have not given proper figures to the government for consideration,” Consumer Affairs Authority (CAA) Chairman Rumi Marzook told The Sunday Times.
Some shops are limiting sales of milk powder products to two packets per person. The manager of a shop in Kesbewa, S. Bandula, said consumers were being requested not to take more than two packets as many others also needed milk. “This has caused grave problems for consumers. We even set aside several packs for our daily customers because they expect us to do so,” he said.
The strike launched by Milco Company employees last Thursday (December 19) has also disrupted the production of milk powder.
The employees took to the streets in protest at the interdiction of 17 workers and over demands covering 11 issues including payment of their year-end bonuses.
“We didn’t get a bonus since last year. It is a workers’ right and we are demanding that the officials concerned look into the matter,” said SLFP Trade Union Chairman, Padmasiri Silva. He said the strike action was called after several attempts to find a solution through negotiations failed.