Tuesday, 2 March 2004  
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20 m Lankans groaning under high COL burden

by Uditha Kumarasinghe

The Freedom Alliance yesterday vehemently rejected the statement made by the UNF in its election campaign that the UNF Government has rebuilt the economy and brought down the cost of living during the past two years.

"These claims are utterly false and misleading. Nothing could be further from the truth," said JVP Propaganda Secretary Wimal Weerawansa.

MEP Leader Dinesh Gunawardane said the Freedom Alliance would like to place before the nation, the reality that just does not square up with the sweeping claim made by the UNP.

"This election has begun on a strange but not entirely unpredictable note. After two years' of a shameful record at governance, the party is out to seek a mandate claiming just the opposite," Gunawardane told a media briefing at Taj Samudra Hotel.

He said 20 million Sri Lankans are groaning under the burden of high cost of living. The prices of all essential goods such as food, fuel, medicines, travel, water and electricity have shot through the roof.

"Market prices indicate the magnitude of the misery that the UNP has delivered to Sri Lanka. Rice which was Rs.29 per Kilo under the PA Government in 2001 has gone up to Rs.35 per Kilo under the UNP in 2004. Pulses which was Rs.36 per Kilo has increased to Rs.56. A Kilogram of onion which was Rs.32 has increased to Rs.45.

In addition, 400 gms of milk which was Rs.100 during the PA regime has been increased to Rs.135. A gas cylinder which was Rs.425 has increased to Rs.620 at present."

"With such a reality staring in our eyes, which government, in its right senses, can claim to have delivered ?" he asked.

He said that the economy is in a state of drift due to misplaced priorities in the economic management. Local manufacturing has suffered a blow in the last two years while the dependence on imports has seen a steep climb. The local entrepreneur has been systematically marginalised. In addition, agriculture, the spine of our economy has been completely neglected, he said.

Gunawardane said during the past two years, public assets and enterprises have been milked dry and then sold for a song. Banks have been arm-twisted to waive hundreds of millions in loans to benefit friends. Public money has been routinely swindled in a patently scandalous nexus with contractors and rogue businessmen who act as deal-brokers.

"If this is what the UNP calls delivery in a span of two years when they " had just begun", one shudders to even think of the proportions of their delivery if they had a full term.

Therefore, the Freedom Alliance calls upon the people to seek answers from the UNP for their failure to deliver and reject their overtures as they have proved themselves to be utterly unfit to govern," he added.

Weerawansa said the economy was adversely affected in 2001 mainly due to several terrorist attacks and the purchase of modern weapons to safeguard the troops who were on duty in the Jaffna peninsula.

He said this kind of situation turned into normality within two years. There was no need for any specific strategies for this.

"The UNF Government created an atmosphere to increase the cost of living by cutting down Samurdhi and fertiliser subsidies. The costs incurred by the Government on behalf of the country's people has been lessened by the UNF administration.

This is what the government means when it says it has "saved money".

"After putting all the burdens on the people and that without doing any development activity, the Government could indeed save some money. During the past two years, the

Treasury collected money without releasing them for development.

The Government misled the public that the economy has tuned into positive during the past two years."

He commented that this "positive growth" has not given any benefits to the people.

The 10 per cent VAT imposed on essential consumer items was increased to 15 per cent.

This kind of development has only kept the people in hunger.

He noted that the Freedom Alliance has already pledged to form a production economy to strengthen the State sector while creating an effective private sector which will be responsible to the people.

This will be done through a participatory approach by providing relief to the people which has been cut down by the UNF Government. President's Counsel M.M. Zuhair said false propaganda is being carried out by the UNF against the Freedom Alliance, particularly the business community is not supportive of the alliance. Many representatives of the business community have extended their fullest support to the alliance.

The plantation and the industrial sector have been supportive of the Freedom Alliance specially regarding the administration and the management of the economy, he stressed.

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