Is there an alternative to fuel price increase? - EDITORIAL

Death, the saying goes, comes like a thief at night. The sudden midnight price increase in fuel prices ranging from petrol, to diesel to the poorest of the poor man/woman’s fuel - kerosene came like a bolt from the blues. 
Media reports warn of fuel rationing with importers struggling to pay for oil, import of food, medicine and industrial raw materials in a worsening economic crisis. Already supermarkets have begun rationing staples such as sugar, lentils, canned fish and rice. 
As a result, there has been a steep increase in the cost of basic food items. Worse there is a growing fear as to whether the country could default in its debt repayment, which according to AFP reports stands as an astounding US$ 26 billion!   

Coming at a time when thousands of people have been thrown out of employment, when wages of large sections of the population have been slashed by employers claiming losses caused by the Covid-19 pandemic, the - year end - timing of the price increases could not have come at a worse time.
Prices of basic food items are already at an all-time high and parents are finding it difficult to provide their children with a square meal per day. In addition, they now have to purchase school texts, school uniforms footwear etc. for the new school calendar year. Sadly it is also the Christmas season and it looks as though festivities are going to be hard hit.

What is even worse however, is that persons in authority are not being transparent with the general public. 
Our country has a high level of literacy and whether we be Sinhala, Tamil, Burgher or even Adivasi, our people read, listen to audio broadcasts and watch television. They know that countries around the world are facing inflation and our little island will necessarily face the same problems, probably on a worse scale given our foreign exchange liquidity problem.

According to Central Bank sources the country’s foreign reserves stood at a mere 
US$1.58 billion at the end of November, down from US$7.5 billion in 2019. However, while in other countries these problems are openly discussed and possible solutions put forward, this is not taking place in our Lanka. 
Instead, very recently a high ranking official of the Central Bank speaking at an audio programme glibly asserted that millions of dollars would be in the coffers within the next few weeks. He however did not spell out how this will happen nor whether government had a specific plan or plans to make the claim a reality. 

We, the people need to know how government plans to counter the foreign exchange crisis. Can we not go to the World Bank (WB) or International Monetary Fund (IMF) for a debt restructuring loan? Do we have a possibility to arrange a facility through our neighbour India to overcome the current crisis? Or do we have a plan in place to attract foreign investment into the country?

With country’s Fitch rating being downgraded, it is essential to provide proof of the country’s economic stability despite the recent downturn which is a worldwide phenomenon. Even developed economies like the US are facing problems of inflation. According to DW, consumer prices rose 5% in May from a year ago. 
Deutsche Welle reports, consumer prices in Germany rose at their fastest pace since 1993.
Expatriate worker remittances have been a major source of foreign exchange earnings to the country. We need to show these workers that their remittances are secure. Else their earnings will stay in the lands they work in, with only driblets entering the country. Similarly foreign investment can be attracted only if the economy of the country is seen to be stable and infrastructure in place to ensure investment security.  

What is needed therefore is a plan to face/overcome the present economic crisis not bland statements aimed at hoodwinking the public. 
 What is essential is to take the people into confidence, to unite the diverse political parties, the trades unions and include them as partners in the effort to combat the present economic delirium. The present confrontational politics cannot succeed and will only lead to divisions and disruptions. It’s time to eat humble pie and drag the country out of the present economic morass. The success of this country’s immunization programme is an eye-opener as to what can be achieved when all sections of the people are taken into confidence. Let’s learn from this experience.