Address COL issues without turning it into an election gimmick

Saturday, 30 December 2023 00:00 - - {{hitsCtrl.values.hits}}

The recent survey results published by the Department of Census and Statistics paint a bleak picture of the socioeconomic challenges faced by the majority of Sri Lankan households amidst the ongoing economic crisis. The data gathered and analysed by the Department, reveals that 60.5% of households have seen a reduction in their monthly average incomes. Also a staggering 91.0% report an increase in their monthly expenditure levels, underscoring the widening gap between income and the cost of living.

Delving into the origins of this crisis, the Department’s report identifies the 2019 Easter Sunday attack followed by the COVID-19 pandemic, as having far-reaching economic repercussions. The survey provides insights into the adaptive measures taken by households in response to these challenges. It highlights changes in food consumption habits and the adoption of various livelihood-based coping strategies. These strategies, while necessary for short-term survival, may have long-term implications on income generation and the ability to respond to future economic shocks.

The findings, though alarming, are not entirely unexpected. The rising cost of living has disproportionately affected the more vulnerable groups in society, leading to a decline in income and an increase in expenses. The crisis’s pervasiveness is particularly disturbing, affecting nearly every social strata except for the small fraction of high-income earners. The increase in Value Added Tax (VAT) to 18% next year will further aggravate the situation, leading to a rise in the prices of most goods and services.

As Sri Lanka approaches an election year, past patterns suggest the Government may implement short-term measures to reduce the prices of certain goods and services to gain voter favour. However, these election-centric tactics fall short of addressing the underlying issues. Instead, there is a pressing need for sustained Government intervention to control prices and provide genuine relief to the public.

The upcoming election campaigns are likely to focus heavily on the cost of living crisis, with political parties competing to promise better times ahead. The public will decide whom to entrust with the nation’s future. Yet, beyond the realm of political promises, what Sri Lanka urgently requires are concrete, well-structured programs aimed at addressing the immediate welfare needs of its citizens. This crisis calls for a multi-faceted approach, one that involves both short-term relief measures and long-term programs.

As Sri Lanka grapples with this economic crisis, the path forward requires more than political rhetoric. It demands a concerted effort to implement pragmatic, inclusive policies that not only address immediate hardships but also lay the foundation for a more stable and prosperous future. The people of Sri Lanka deserve a government that not only listens to their concerns but also takes decisive, effective action to improve their lives.