Controlling COL: The people speak out

Anjana Samarasinghe

COST OF LIVING: According to Central Bank statistics the per capita income of Sri Lanka was USD 1191 last year and USD 1031 the previous year. This is a 15% increase.

The Sri Lanka Consumer Price Index was 10.6 last year and 7.9 in 2004.

The Daily News spoke to a number of consumers and local Chamber officials on their suggestions to the Government on controlling the cost of living.

President of the Federation of Chambers of Commerce and Industries of Sri Lanka (FCCISL), Nawaz Rajabdeen said the cost of living escalates according to the world oil prices and no government could help it.

"We need to adjust ourselves to ever-increasing cost of living by improving the living standards and increasing wages for better livelihood. No government could be blamed for the high cost of living, he said.

Secretary General/ CEO of the Ceylon National Chamber of Industries Upali S. Samarasinghe said that Sri Lanka needs more foreign investments and rapid infrastructure development to reduce the cost of living.

The Government needs to create an investor friendly environment by accelerating the peace process.

Executive Director of the Sri Lanka National Council for Economic Development (NCED) under the Presidential Secretariat Rohantha Athukorala said when the global economic structure changes it will affect local markets, which results in high cost of living.

We cannot put the burden on the government for the high cost of living.

"As a country, we need to strengthen the economy to mitigate the impact that occurs due to changes in the global economy, he said.

President of the Sri Lanka Chamber of Small Industries (SLCSI), Aloy Jayawardene said that the Government needs to reduce the price of five or six most essential items the consumers need for their day to day life.

This has been adopted in countries like India. Government could gain funds to subsidise these items by increasing taxes for luxury items, which only a few consumers are interested in, he suggested.

Confirming SLCSI President's comment, Attorney S.M.S. Jayawardena said any Government should exempt from taxes the most essential items.

The Government should concentrate on the common man than the rich.

A teacher who didn't want to her name published said that at present the Government is maintaining a large number of Cabinet and non-Cabinet ministers.

Each year the Government has to pay a large amount of money to maintain its ministers. If the Government could avoid these expenses funds could be utilised for the price control of consumer goods.

Undergraduate of the University of Colombo Dulindra Wijethilaka said that world oil prices control the prices of consumer goods in any country.

Recent research says that there are oil deposits in Sri Lanka too. Government should accelerate oil extraction in Sri Lanka without delay.

Retired public servant R. P. M. Wijesekara said the government should strengthen the authorities such as the Department of Inland Revenue and Department of Customs to avoid corruption and bribery.

"These are the main income generators for the Government.

Corruption and bribery will prevent a large amount of money from coming into the State, which can be used for subsidising consumer goods.

A housewife from Piliyandala Ranjani Fernando said the Government should generate more jobs to increase the per capita income. But the current education system is creating barriers for job opportunities in Sri Lanka.

The Government needs to amend the current education system, and enable to create more job opportunities.

Branch Manager of the Eheliyagoda Bank of Ceylon D.R.C.S.Udayakumari said the Government should promote local products among local consumers to control the cost of living.

"When the country consumes more local products, prices will decline, she added.

"There should be a proper mechanism to purchase crops from the farmers and delivered to consumers with minimum involvement of middlemen and the Government should have the right to control the prices of these crops, said self employed Sumithra Perera.

"It is much profitable for the Government to purchase crops from local farmers than importing them.

The Government also should concentrate on improving quality of the local products to popularise among local consumers said Merchandiser of Hirdaramani Group Tharinda Siriwardena.

Human Resource Manager of Crown Security Service Tony Ibrahim said the Government needs to provide subsidies for the people who are below the poverty line.

These subsidies should be granted as food rations. Increasing both public/private sector wages too is important to minimise the cost of living.

Popular artiste Ronnie Leich said today cost of living has gone up and it has also affected the entertainment industry.

"Now we too are compelled to charge higher rates from the producers, as it is difficult to survive. "

When contacted, a vegetable seller in Dambulla said that the cost of living is a major concern for them. "In addition to the high cost of living we will now have to pay more for transport due to the hike in diesel. This will lead to less income for us," he said.

Readers are welcome to send in their ideas and comments on curbing living costs for publication in our Financial News pages. We could be e-mailed on [email protected] or faxed on 2429220.