(May 22, Colombo, Sri Lanka Guardian) According to the Department of Census and Statistics, inflation, as measured by the point-to-point change in the Colombo Consumers’ Price Index was 28.1 per cent in April.
It was also reported in the media that the government’s 2008 budget estimates expected Rs.700 billion in revenue, out of which about Rs. 500 billion would account for servicing foreign debt. As there is no sign of the war ending soon, the government may need about Rs.200 billion to meet the defence budget.
When this government came into power, the people had faith in the Mahinda Chinthanaya which promised so much to so many. Now, all that has evaporated into thin air. There are no optimistic signs of the war coming to an early end as predicted by many. The political landscape is bloodied and the economic scenario is no better either.
The price of rice is on the rise. The Minister of Consumer Affairs, Bandula Gunawardena, who was vociferous once upon a time, has now become toothless. Since his assumption of office, prices of all essential consumer commodities and services have risen steeply. The garrulous Minister is now clueless, and seems to have left behind his ‘magic wand’ in his former ‘domain of elephants!’
The government has antagonised the international community by its acts of commission and omission, and there is not much foreign aid forthcoming. In fact, it is drying up. The purchasing power of our money has taken a heavy beating. There is talk of a global food crisis and the threat of increasing prices of goods and services in the future.
With the jumbo cabinet and financial mismanagement, the government has no clear-cut answers. Faced with this grim situation, the people have to wage a battle for survival. When foreign aid is not forthcoming, the government will be forced to print money, which will have an adverse effect on inflation, which will in turn boomerang on the people.
Placed in this dire predicament, the government may have to resort to unpopular measures and heap more hardships on the people. The flickering flames of Mahinda Chinthanaya, which have not brought any benefit to the common people of this country so far, will eventually extinguish under such a scenario.
- Sri Lanka Guardian
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