Sri Lankans struggling to buy food, says WFP report

 

Nearly a half of Sri Lanka’s households are adopting livelihood-based coping strategies to buy food, says a recent report published by the World Food Programme.

The WFP’s ‘Sri Lanka – Household Food Security Survey: Preliminary Findings, December 2023’ says that 43 percent of households were adopting livelihood-based coping strategies to cope with the lack of adequate food. Borrowing money to buy food and purchasing food on credit were the most commonly adopted strategies, by 27 and 26 percent of households, respectively, says the report, adding that households remain vulnerable to future shocks and stresses.

 

 “According to the survey, a high proportion of estate households (80 percent) adopted livelihood-based coping strategies, followed by 50 percent of urban households. In the rural sector, 41 percent of households are resorting to coping strategies. In terms of household characteristics, 43 percent of male-headed households and 42 percent of female-headed households are turning to livelihood-based coping strategies. While this is not a significant difference, a larger proportion of female-headed households are adopting more severe coping strategies compared to male-headed households such as selling assets and spending savings,” it said.The report has identified six livelihood-based coping strategies such as borrowing money, purchasing food on credit, spending savings or skipping debt payment, selling jewellery to buy food, reducing the spending on education and health and selling household assets. It has been observed that 27 percent of households relied on borrowing money while 26 percent opted for purchasing food on credit. Five percent of the household sample of the survey resorted to selling household assets and 16 percent chose to sell jewellery to buy food. It has been observed that 19 percent of the sample relied on the strategy of spending savings or skipping debt payment while 14 percent reduced spending on education and health.

According to the survey, households relying on social protection schemes, such as Samurdhi, as their main source of income have the highest levels of food insecurity (57 percent), followed by households dependent on humanitarian assistance (49 percent), and unskilled agricultural labour (37 percent). The lowest percentage of food insecure households are among those who have regular and stable income sources.

WFP

Sri Lankans struggling to buy food, says WFP report

The Island lk  2024/01/3

When comparing the survey results with March 2023, agricultural producers reported a significant deterioration in their food security status. For instance, a larger proportion of households relying on the production and sale of vegetables and fruits, and staple crops such as rice are food insecure during the current reporting period compared to March which was Maha harvest season.

The report said: “WFP and FAO jointly conducted a second CFSAM in March 2023, where a significant improvement in food security was noted, with 17 percent of the population estimated to be food insecure. This 11-percentage point decrease is attributed to better food consumption due to reduced prices and improved income during the harvesting period.

“Between August and October 2023, WFP conducted a panel survey of 8,741 households that were interviewed in March through a face-to-face data collection approach to produce representative estimates at national and regional levels. The survey employed a 2-stage stratified cluster sampling methodology in which a fixed number of primary sampling units (PSUs) were randomly selected at the first stage and within each PSU, 10 households were selected for interview.

“This preliminary report provides an update on the overall food security situation since March 2023, and it comes as part of WFP’s efforts to expand its evidence generation initiatives to inform the response among government and humanitarian/development partners in Sri Lanka.”

The Upcoming VAT Price Shock - EDITORIAL

dailymirror.lk 3 January 2024

In October 2023, the Sri Lankan Cabinet granted approval to increase the Value Added Tax (VAT) to 18% with effect from the 1st of January 2024. The new enhanced tax would be applicable to certain other goods and services which at the time were exempted. 

The amendment was passed with a majority of 45 votes, with 100 MPs voting in favour and 55 voting against the bill. With the SJB - the leading political party in the Opposition - alone having 54 MPs in Parliament, it meant a number of members of Parliament sitting in the Opposition also have voted for the extension of the Value Added Tax to cover goods and services which were not covered by the tax earlier.

This column has for a considerable time been highlighting the burdens and difficulties ordinary citizens have been undergoing since the economic meltdown arising from the country declaring itself bankrupt in 2022. In this column we have also repeatedly called for immediate steps to be taken to lighten the burden on the poor and the deprived.

Unfortunately, rather than seeking to ameliorate the pain of the more deprived sections, the government has for reasons best known to itself seen it fit to add to these burdens rather than provide any form of safety net to this unfortunate section of our population.

Latest statistics published by the government’s own Department of Census and Statistics reveal that the monthly income of 60.5% of households has decreased. At the same time 91% of households report an increase in monthly expenditure! 

Today, the average income in the country ranges between Rs. 40,000 to Rs. 60,000 per month. Yet the cost of providing three basic meals per day for a family of four is over Rs. 120,000. In other words, if both parents worked and received the upper limit of Rs. 60,000 per month they would have only sufficient funds for meals. 

This does not include funds needed for children’s education, clothes, medical expenses, travel or recreation. 

The survey also shows 22% of all households are indebted due to the economic crisis. What it does not say is that these families have under the present circumstances little or no chance to get out of their situation of indebtedness.

And, it is in this situation that the government is about to impose a further 18% tax on the already over burdened populace.

On the surface the country seems calm but when the VAT shock hits in the post 1 January 2024 era, people can hardly be expected to remain calm and quiet in the face of impending starvation.

This is not the first time this country has faced this situation. Back in 1866 our ancestors faced a similar situation. Then, as now the country depended on imported rice to meet the shortfall in local rice production.

In 1866, grain riots broke out over the price of rice and the weak British colonial response to the crisis. 

In 1796, in the aftermath of Britain colonising the country, it imposed import duties and taxes as a means of raising revenue. 

In 1866, a great famine struck India, ruining its paddy crop and killing millions of Indian people. 

A fallout of that famine created a shortage of paddy in the market. This in turn led to the price of rice tripling, which left most poor Ceylonese families who depended on rice impoverished.

The British colonial government did nothing to alleviate the situation and people starved. 

The ‘Ceylon Times’ asked of the Governor “does he expect to see starvation at Galle Face or at Cinnamon Gardens where he takes his evening drive?”

Riots broke out on 21 October as people looted shops and shop owners armed themselves to protect their property. 

We will be facing a similar situation today, if the government authorities do not pay heed to the people who have reached starvation point. If this situation continues, it may not be long before citizens will be forced to take to the streets as in 1866.

God forbid that we see the day when some military commander orders his troops to fire on hungry masses of this country, as Napoleon did in France during the French Revolution!

இறைவரித் திணைக்களத்தின் பதிவு இலக்கம் இல்லாதவர்களுக்கு அபராதம்

வீரகேசரி 02 JAN, 2024

இம்மாதம் முதலாம் திகதி முதல் வரி செலுத்துவோருக்கான பதிவு இலக்கத்தை (TIN) பெறாத நபர்களுக்கு 50,000 வரை அபராதம் விதிக்கப்படும் என உள்நாட்டு இறைவரித் திணைக்களம் எச்சரிக்கை விடுத்துள்ளது.

2024 ஜனவரி மாதம் முதல் 18 வயதுக்கு மேற்பட்ட அனைவரும் உள்நாட்டு இறைவரித் திணைக்களத்தின் பதிவு இலக்கமான TIN Number இனை பெற்றுக்கொள்ள வேண்டும் என பொதுமக்களுக்கான அறிவிப்பு விடுக்கப்பட்டுள்ளது.

அனைவருக்கும் தேசிய அடையாள அட்டை இலக்மொன்று இருப்பதை போலவே TIN Number இருக்க வேண்டியதும் அவசியமாகும். வரி செலுத்தக்கூடிய அளவிலான வருமானம் இருக்குமாயின் அவர்கள் வரி செலுத்த வேண்டும். அதற்காக அவர்களுக்கான வரிக் கோப்பும்திறக்கப்படும் எனத் தெரிவிக்கப்பட்டுள்ளது.

மேலும், ஒரு வருடத்தில் (ஒரு வருடத்தின் ஏப்ரல் 1 முதல் அடுத்த ஆண்டு மார்ச் 31 வரை) 1,200,000 ரூபாய்க்கு மேல் வருமானம் பெறும் நபர்கள் வருமான வரிக் கோப்பை திறக்க வேண்டும்.

இதனை, பொது மக்கள் www.ird.gov.lk என்ற இணையத்தில் பதிவு செய்யலாம், தபால் மூலம் பதிவு செய்யலாம் அல்லது இலங்கை உள்நாட்டு இறைவரித் திணைக்களத்தில் நேரில் பதிவு செய்யலாம்.

Fuel, LPG prices soar with VAT

FT Tuesday, 2 January 2024

• CEYPETCO, Lanka IOC align their rates, whilst Sinopec opted for slightly lower increase for Petrol Octane 92
• Kerosene prices drop by Rs. 11 
• Litro Gas increases 12.5 kg canister by Rs. 685, LAUGFS increases it by Rs. 755

In a synchronised move, all three key players in the fuel industry and the two domestic LP gas players raised prices amid the new Value Added Tax (VAT) regime came into force impacting all economic sectors.

Yesterday’s adjustments saw the Ceylon Petroleum Corporation (CEYPETCO), Lanka IOC aligning their rates whilst Sinopec opted for a slightly lower increase, keeping its Petrol Octane 92 and Auto Diesel prices Rs. 3 less than the other two competitors. 

Accordingly, Petrol Octane 92 was increased by Rs. 20 to Rs. 366 per litre, while Petrol Octane 95 was increased by Rs. 38 to Rs. 464 per litre. Auto Diesel was increased by Rs. 29 to Rs. 358 and Super Diesel by Rs. 41 to Rs. 475. 

Sinopec, maintaining a marginally lower pricing strategy, announced that Petrol Octane 92 was increased by Rs. 17 to Rs. 363 per litre. Petrol Octane 95 was increased by Rs. 38 to Rs. 464 per litre, Auto Diesel was increased by Rs. 26 to Rs. 355 per litre and Super Diesel was increased by Rs. 41 to Rs. 475 per litre. 

Despite the general upward trend, the price of Kerosene experienced a reduction. It is now available at Rs. 236 per litre, reflecting a decrease of Rs. 11 by all three players.

The increases, though anticipated, pose challenges for consumers and industries grappling with rising cost-of-living and operational costs. The reduction in Kerosene prices may provide some relief to households and the fisheries industry relying on it.

Litro Gas Lanka Chairman Muditha Peiris announced that it also raised domestic gas prices yesterday, noting that an upward price revision was necessary to ensure the sustainability and efficiency of its operations.

Accordingly, the price of the 12.5 kg was increased by Rs. 685 to Rs. 4,250, while the 5 kg cylinder was increased by Rs. 276 to Rs. 1,707 and the price of the 2.3 kg canister was hiked by Rs. 127 to Rs. 795. 

In response to the VAT impact, LAUGFS Gas too said it has adjusted prices. As per the new price hikes; the 12.5kg gas cylinder was increased by Rs. 755 to Rs. 4740 and the 5kg canister was increased by Rs. 305 to Rs. 1,900.⍐