Taxing the people
View(s):Bullock carts have resurfaced on the roads while old bicycles are being dusted and put to use as Sri Lanka battles multiple crises as the shortage of dollars has triggered an energy crisis. Five to seven-hours of power cuts are the order of the day and people are now resorting to coal-fired stoves for cooking.
At least three people have died due to fatigue or other health complications while waiting in queues for kerosene or gas. Another man has been knifed to death during a brawl at a queue for fuel. None of this seems to have stirred any major concern among the country’s leaders, while an all-party conference (the main opposition decided to boycott the meeting) looked at long-term issues like tackling the growing debt problem rather than finding immediate solutions.
An Economic Advisory Committee of mostly business leaders tasked with advising an Economic Council headed by the President on how to resolve the foreign exchange crisis, in their recommendations suggested forming two other committees. This committee was recommending appointing more committees – as if we don’t have enough committees to find solutions. More and more committees but no quick-fix solution to the crisis at hand as people wait patiently for hours and days for fuel.
At one point in Colombo when a truckload of cooking gas cylinders reached a gas sales point, dozens of residents carrying empty cylinders rushed to form a long queue even before the gas cylinders could be unloaded. Such is the demand for gas these days.
These issues don’t go away easily at a time when nightly TV news bulletins are filled with people at queues accusing the government of failure and silent protests across Colombo. I was reflecting on these developments when the phone rang. It was Pedris Appo, short for Appuhamy, a retired agriculture expert who does farming, on the line. I relished the thought of a conversation with Appo to find out more about the 1970s (though I also grew up during that period) and the shortages of that era.
“Hello… hello,” I told Appo warmly, adding: “I wanted to talk to you about the 1970s era of shortages.”
“While there are similarities, it was somewhat different. For example, rice was rationed but with your ration card you got your entitlement. It was the same with bread – you got a loaf. Today there is no gas or fuel and food and vegetables have risen sharply in price,” he said.
“Could we resolve this issue on a long-term basis by growing our own food requirements?” I asked.
“Food security is a long-term issue and needs a proper plan. During the 1970s too there were efforts to be self-sufficient but it didn’t work,” he said, noting that for a population whose lifestyles have changed after the end of the shortages-led era of the 1970s, it’s not an easy task.
“So where lies the solution?” I asked again. “The simple premise is that we should ‘cut the coat according to the cloth’ and spend only what we earn without a deficit,” he said.
That’s hard to put into practice since Sri Lanka has been running with huge deficits at a national level while the middle class is also steeped in debt with credit cards being the main culprit. Banks mint millions of rupees by asking customers to pay only the ‘minimum’ payment as the balance keeps rising at exorbitant interest rates.
While the cost of living has hit the roof and many families are being forced to forego at least one meal a day, Sri Lankans are bracing for another round of increases – rising electricity charges. The Business Times last week exclusively reported that electricity tariffs were going up to unprecedented levels after a 7-year break and that these increases were aimed at reducing the huge debt at the Ceylon Electricity Board (CEB). Costs have also risen because the CEB has to use costly fuel for thermal power generation.
According to the proposal before Cabinet, the tariff for the poorest of the poor consumers numbering around 1.39 million whose power consumption came under the first block of 0-30 units will be increased by around 499 per cent, five times more than the current tariff.
The tariff of around 1.7 million people who use 31-60 units will be increased by 350 per cent or 3½ times, while the electricity bill of 1.69 million consumers will go up by 166 per cent, the report said. The average electricity bill of normal households will go up by 78 per cent but high net-worth consumers who use over 180 units will have to pay 18 per cent more than their present electricity bills, it said.
“Unbearable,” was how one resident at a queue described the situation when asked how they would manage with all these price hikes in essential goods and supplies.
It was the same ‘unbearable’ situation for the trio when they met under the margosa tree on Thursday morning. Our friendly baker Aldoris didn’t come down the lane this morning, sparking concern that he may have given up the business, as he had threatened to earlier, since it was not profitable.
“Aldoris, ada athurudahan wela. Mama balaporoththu wenawa eyata prashnayak ne kiyala saha eya bakery wede digatama karagena yayi kiyala (Aldoris is missing today. I hope he is not facing a problem and will continue his business),” said Kussi Amma Sera.
“Me badu mila ihala nagina widihata api okkotama eka welak kanne nethuwa inna wenna (The way prices are rising, all of us would have to give up one meal a day),” said Mabel Rasthiyadu.
“Ape gedera, api paan ganna eka navathwala thiyenne godak mila hinda (In our household, we have stopped buying bread as it is expensive),” added Serapina.
According to Central Bank data, as at March 11, the average retail prices of items in Pettah give an indication of how high, prices have risen with inflation being pegged at 18 per cent.
Samba was selling at Rs. 168 per kg on March 11, while a year ago it was Rs. 129.50 and Kekulu was Rs. 165 but a year ago it was Rs. 99.50. Beans were Rs. 266 on March 11 when a year ago they were Rs. 150; Carrot – Rs. 316//Rs. 147.50; Tomato – Rs. 340//Rs. 156.25; Brinjal – Rs.164//Rs. 60; Dhal – Rs. 338//Rs. 170 and Eggs – Rs. 26.50//Rs. 17.38.
As I sat down with my second mug of tea, after completing the column, I realised I didn’t have breakfast this morning (as Aldoris’s pastries were missing). Maybe it’s time to forego a meal a day!
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