India and Lanka differ on full implementation of 13A

Stalin acknowledged several such incidents had occurred but said such hacklers were “misinformed” and likely urged on by Government propaganda. “Some had shouted that teachers were staying home and collecting their salaries after shutting down schools, but it was not us but the Government that shut schools due to the pandemic". But the criticism was not just that the teachers were not attending classes but even boycotting the online lessons for the students trapped between the Government and the unions and the intransigence on both sides. Nevertheless, Stalin said they were yet to take a decision on whether teachers would go back to work once some schools reopened on October 21.

Away with price control

These were not the only headaches for the Government. Attempts to strongarm importers and big-name traders through a state of emergency failed to prevent shortages of essential items, and the Government's weakness in the face of business was exposed. That was not a good thing for any Government. First, it caved into the so-called 'rice mafia' by reversing the Gazette notification setting out a maximum retail price for rice. This week, President Rajapaksa had to chair a special Cabinet meeting on Thursday to decide whether to allow price increases in domestic gas, milk powder, wheat flour and cement, all of which have been in short supply.

In the end, the Cabinet decided to remove price controls imposed on the items, essentially acknowledging that the price controls mechanisms actually contributed to shortages of consumer items. State Minister of Co-operative Services, Marketing Development and Consumer Protection Lasantha Alagiyawanna told the media that the President had instructed the authorities to ensure that prices of these items were not raised to unjustifiable amounts, whatever that was meant to mean. With the state food cooperative Sathosa reeking in corruption, what was meant to be the safety net for the poor consumer has been taken away as the CID conducts investigations into a whistleblowers allegation that rackets run into the billions.

One item that has been sorely lacking for weeks now is milk powder. Container-loads of milk powder had remained stuck at the Colombo Port awaiting clearance for want of foreign currency to issue to importers to pay foreign banks and settle their Letters of Credit. Importers had also refrained from ordering fresh stocks without a substantial price increase on the grounds that they could not sustain the losses that arose from selling milk powder at current prices owing to the sharp depreciation of the rupee. Nightly television news has carried daily segments of people queuing up for hours outside the few milk powder distribution centres where limited stocks are available. Things have even got ugly at times, with fights breaking out among those jostling to buy milk powder. Many who are forced to endure such hardships have been scathing in their criticism of the Government over the shortages.

These segments would no doubt have been seen by the highest authorities of the land and probably stung them into taking Thursday's decision to remove price controls.

During discussions held with Minister Alagiyawanna on Friday, milk powder importers proposed an increase of a 1 kilogram packet of imported milk powder to Rs 1300 and increase the price of a 400 gram packet to Rs 520. The maximum retail price of a 1kg milk powder packet under the price controls that were done away with was Rs 945. The maximum retail price of a 400g milk powder packet stood at Rs 380.

After discussions with the State Minister, the Milk Powder Importers’ Association last morning said it had agreed to raise prices by less than the ones they had originally proposed. Accordingly, the price of a 1kg packet of milk powder will go up by Rs 250 while a 400g packet will increase by Rs 100. Accordingly, the new price of a 1 kg packet of milk powder will be Rs 1195 while a 400g packet will be sold at Rs 480.

Cement suppliers who met the Minister on Friday proposed to increase the price of a 50 kg bag cement by Rs 200 to Rs 1205. Wheat flour producers proposed a price increase of Rs 20 for 1kg of wheat flour, increasing the price to Rs 107. Gas suppliers also met the Minister and a price increase for domestic LPG cylinders is also currently under discussion.

While the final price increases are yet to be announced, prices of these items are set to go up by next week. Trade Minister Badula Gunawardena told the Sunday Times last week that price increases were on the cards and the cost of living shooting up was inevitable. How the Government is going to brace itself to the whiplash reaction by the public is to be seen. Whilst they may end the artificial shortages that currently prevail, it will also heap more misery on the public. The top-down effect of such increases means that even the price of a plain cuppa tea will increase along with that of many other items of 'the common man'.

SJB v. Diana Gamage

The Samagi Jana Balawegaya (SJB) had its own storm in a tea cup. This week it expelled its National List MP Diana Gamage, who crossed over to the Government during the vote on the 20th Amendment. Gamage is the Secretary of the 'Ape Jathika Peramuna' which was the registered political party that was reconstituted as the Samagi Jana Balawegaya to enable it to contest the 2020 parliamentary election. SJB General Secretary Ranjith Madduma Bandara announced to the media on Thursday that Gamage, whom some critics call 'Lady Ga-Ga' had been expelled from the party following an inquiry by a Disciplinary Committee. On Friday, Gamage hit back in Parliament, saying she had not been informed of the disciplinary proceedings against her and likening her expulsion to someone who had allowed a group to shelter in her house due to rain, only to find the same people changing the locks whilst she was out and proclaiming the house to be theirs.

“They asked me to come for disciplinary proceedings during the weekend and I wrote back asking them to allow me to come during week days as it was more convenient. They then asked me to come during the height of the pandemic and I refused. I was subsequently informed that they would take a decision regarding my position, but I am yet to officially receive a communication about my so-called expulsion,” she told the Sunday Times.

Ms Gamage, who insisted the SJB cannot remove her by such an inquiry, said she would explore legal action if the party moved to expel her.