When a national crisis needs support

Asevere drought that has hit several parts of the country is seriously affecting Sri Lanka’s crop harvests particularly paddy in nine districts.

According to Government estimates at least 15 per cent of the rice harvest will be lost this year while rice imports have been allowed to cover the shortfall. The Treasury in the meantime has allocated Rs. 1.9 billion as cash relief for farmers and others affected by the drought mostly in the country's dry zone regions. While Government officials say the money is being distributed through district secretaries across drought-stricken populations, the affected are complaining that the money has not reached them, a usual lament during such crises. This is one area where the state machinery could do better.

Government officials say a further evaluation is being made of the damage caused to crops and livelihoods for further, possible financial support.

However with the Treasury strapped for cash and often transferring funds from one pool of resources (ministry, department or institution) to another, finding emergency funds becomes another herculean task. These issues would also surface in the preparation of the November budget presentation.

While rice farmers have been badly affected by the drought, tea plantations have not suffered as much.

In fact, according to industry experts, tea is doing quite well with the dry weather conditions positively impacting on quality. “Low growns and hilly teas have not been affected as the weather during this period is often dry,” said one broker adding that in fact last year during May-June-July there were freak thundershowers that affected the Uva quality season. “Thus the drought that has affected other crops doesn’t have the same impact on tea,” he said.

In the meantime, the Ceylon Chamber of Commerce (CCC) on Tuesday stepped in and said it was mustering the support of the local business community to aid affected populations.

In a commendable move which should be the norm rather than the exception (as in the past), the country’s premier chamber said it would be coordinating an effort to bring relief of all forms to the affected.

This is the kind of national exercise that the business community should get involved in when a national crisis hits the country, without waiting for an invitation and such a situation worsening. After all drought or any kind of disaster affects not only individuals but also their spending power; this is not saying local businesses should help only if their bottom-line is affected, but it is the responsibility of all sectors of society to help victims … without waiting for a call.

The chamber said it has asked its over 3,500 direct and indirect members, affiliates and associations to support government efforts by donating food, water and other essential items to help the trouble- hit people in the North-Western, NorthCentral, North, Eastern, Southern and Uva provinces.

“Dire needs on the ground are water storage tanks, household water containers and bowsers to distribute water to the affected,” a chamber statement said adding that a meeting has been called for tomorrow at the chamber to coordinate this effort.“Essential food items can be supplied in the form of dry ration packs consisting of items such as dhal, sugar, soya meat, salmon, rice, tea bags, etc,” the chamber added.

The chamber said relevant government agencies and or NGOs will take the responsibility of delivering goods to the needy families in the Polonnaruwa and Anuradhapura district, two of the worse affected areas by the drought.

How the drought would impact the economy this year was what economic planners were assessing this week. The Central Bank in its latest economic review (monetary policy assessment) for August said this week that headline inflation continued to remain in low single digit levels, although it increased to 3.6 per cent on a year-on-year basis in July 2014 from 2.8 per cent in the previous (June) month reflecting higher prices of certain food items caused by adverse weather conditions.

“Although supply disturbances triggered by adverse weather conditions could cause temporary price fluctuations, the outlook for inflation remains benign supported by relatively stable international commodity prices as well as well contained demand pressures and inflation expectations,” the banking regulator said, adding that given the information for the first half of the year, real economic growth is likely to remain broadly on target in 2014.

On relief efforts, in crises of this scale, it is more than essential; no it is fundamental that every segment of the community pitches in with support to help affected populations.

In this context, the CCC – with its large and efficient secretariat - could operate as a binding force in doing good for the community in a crisis of this magnitude. It could bring together many of the other chambers and services like the telecommunication, financial, banking, insurance, food and alliedsectors that have the money to spend to contribute to such causes.

What could drive such an initiative is a permanent mechanism in the private sector like the government’s disaster centre which could be mobilised or activated in a jiffy and put into action whenever a crisis like this occurs. That is real corporate social responsibility and meeting the needs of fellow beings when they need it most.

Maybe the once-active Joint Business Forum, comprising all chambers, would be reactivated through the good offices of the CCC to set up a mechanism that would step into a crisis swiftly and work with the Government in relief efforts.

All other chambers and professionals need to step in and help the Government in providing relief and livelihood support to affected communities.

Sri Lankans by nature are a generous race and prone to help others in need: they only need a mechanism that could put this effort together. And this is where the government, the community and the private sector could work together, jointly cutting across political boundaries, caste, creed or colour.