Govt. takes measures to bring down cost of living

by Sarath Wijesinghe, Chairman, Consumer Affairs Authority

There are concerns over the rising of cost of living in Sri Lanka. Cost of living is an issue prevalent all over the world. It is not practicable to prevent rising of cost of living. Everywhere in the world the cost of living goes up from time to time.

In Sri Lanka, the price of any item is not static. The price of bread or rice in the 1970s was very much lower than what it is now. But the salaries, income and other benefits have also increased proportionately.

An average employee who was drawing Rs. 1,000 in over 1970s will be drawing around Rs. 15,000 today. Government Servants do not pay taxes. It is the duty of the government and the institutions connected to find ways and means to help the nation to meet the challenge using the "Good Office" of the government and the machinery.

The Consumer Affairs Authority established under Act No 9 of 2003 is a regulatory body which is mainly dealing in regulating trade and paving the way for the consumers to buy healthy food and other consumer items of quality at a reasonable price.

Conceptually the free market economy was introduced in 1977 and currently there is no traditional price control system. The prices of consumer items are controlled by competition and the regulatory procedure.

This is the reality as any government is bound by the external factors because in the free economy system today most of consumer items are imported. It is our duty to increase our production.

The government has taken the initiative to help traders, manufacturers, industrialists and farmers which is the basis of Mahinda Chintana and the policy of the government while maintaining the balance among consumers and traders, manufacturers, industrialists and the international economic realities and the world order.

The quality of life has greatly improved and the expectations of the community are frequently increasing.

Modern technology, modern way of life, crave for education and globalisation have led the consumer to unexpected and unachieved expectations. The mobile culture has embraced the community though it is costly now every other person has a mobile and the telephone has become a part of day-today life.

The salaries have increased and the income of the professionals and workmen have increased due to demand and development.

The government has taken measures to declare 14 consumer items essential by entering into agreements with traders and applying section 18 of the Act No 9 of 2003 which gives power to the CAA to monitor the increase of prices of essential items.

At the same time the Ministry of Finance, Trade and other government bodies are working tirelessly to bring down the prices by permitting concessions on various other ways.

Subsidies of VAT/TAX and concessions to our local traders and industrialists and measures to prevent anti damping by introducing Maximum Retail Price are some steps taken by the government to protect the local trader and the industrialists.

According to Act No 2003 where the Minister is of opinion that any goods or any service is essential to the life of the community or part thereof, the Minister in consultation with the Authority may by Order published in the Gazette prescribe such goods or such services as specified goods or specified services as the case may be; no manufacturer or trader shall increase the retail or wholesale price of any goods or any service specified under subsection (1), except with the prior written approval of the Authority; a manufacturer or trader who seeks to obtain the approval of the Authority under subsection (2), shall make an application in that behalf to the Authority, and the Authority shall, after holding such inquiry as it may consider appropriate: a) Approve such increase where it is satisfied that the increase is reasonable or b) Approve any other increase as the Authority may consider reasonable and inform the manufacturer or trader of its decision within thirty days of the receipt of such application and where the Authority fails to give a decision within thirty days of the receipt of an application as required under subsection (3), the manufacturer or trader who made the application shall be entitled to, notwithstanding provision of subsection (I), increase the price: provided however, where the delay in giving its decision within the stipulated period was due to the failure of the manufacturer or trader to give any assistance required by the Authority in carrying out its inquiry into the application, the Authority shall have the power to make an interim order preventing the said manufacturer or trader from increasing the price, until the Authority makes its decision on the application.

Toppigala victory is an unprecedented achievement whereby the entire East is now liberated. In a war it is inevitable that the prices of essential items go up and shortages are bound to occur. In Sri Lanka despite the war and terror the people patiently underwent the difficulties.

Today they reap the harvest by winning the war for the suffering they have gone through in the interest of the nation.

The declared essential items are: white sugar, dried chilies, big onions, red onions, dhal, dried sprats, gram, green mung, canned fish, chicken meat, gas, cement, milk powder, wheat flour.

The intention and the idea behind this process are to help the group of people who requires assistance.

As a result of the open economic policies all the other consumer items are indirectly controlled by competition.

The CAA has entered into agreements with the traders to agree on the maximum wholesale price of essential consumer items. In due course maximum retail price too will be decided in order to help the consumer at large. We invite the consumers, traders, industrialists and manufacturers to communicate with us on: telephone - 2445897 / 2393577 / 2393495, hotline - 2321696, website - www.cosumeraffairs.gov.lk and fax - 2399148 or via 1919