Cost of living is so high, aney!
The sky is so high, that you cannot fly, was a childhood thyme I remember. There are some who can fly in no time to be in Singapore for Christmas. To go to Singapore for Christmas is, I would say, going in the wrong direction. A better method is to go to Bethlehem. But, truly spiritual Christmas could be celebrated in any part of the world.
A truly spirited Christmas could be celebrated in Sri Lanka without a strain on the purse. What is abused is that despite the high cost of living, some are able to go abroad for Christmas. I have no grievance with those who go abroad for Christmas but we must remember that our own extravagance is the cause of the high cost of living.
Whichever way we look at it, our extravagance is in the background and sometimes in the foreground. The excess demand takes the form of high demand for imports. If not for imports, it is high for local production. Since the demand for local products is high, there is no incentive for production of exports. The excessive demand is one of the reasons for the high prices.
Why should the prices be high? Because there is a huge production gap. The demand is so high that the production cannot cope with it or totally lacking. Look at India, for instance, they became independent like us, about the same time but see how they have forged ahead and become a super power. All what they require is locally manufactured with foreign collaboration. Many Sri Lankans are known to go for on a shopping spree to India, where in many cases, certain goods are incredibly cheap. There is no production gap there and the people there do not complain of high prices.
Politicians in Sri Lanka don’t seem to realize the crux of the matter. We have reached a situation when “there is too much money chasing too few goods”. The idea is that there are goods being produced but not enough to satisfy the demand. This results in high prices.
The other side of the coin is that there is no consumer resistance. The people buy anything at whatever price, especially during the festive seasons.
To come to our politicians, in the name of economic development, many houses are being built. Although a comfortable living important to maintain a standard of loving, houses are looked upon in economics as idle investment, which generate no employment. But the public see this as economic development.
Even tarring a gravel road is economic development while the construction of a road is also interpreted as economic development. While infrastructure is necessary for speedy development, it is not in itself looked upon as development by economists.
So, what our country needs today is change in the mindset. It is not necessary to lead high living, when we can’t afford it. Simply because others are doing it, you don’t have to. You must cut your cloth according to your income. With austere living, your COL cannot be high.