Sri Lanka government has taken a raft of new relief measures to ease the cost of living with food inflation on the rise.

Sri Lanka’s inflation in the 12-months to December accelerated to 14.2 percent in January 2022 from 12.1 percent in December 2021, with food prices up 25 percent, data from the state statistics office showed.

The Colombo Consumer Price Index grew 2.4 percent in the 31 days of January to 158.4 points.

Consumer Price Index CPI in Sri Lanka averaged 56.46 points from 1985 until 2022, reaching an all time high of 158.40 points in January of 2022 and a record low of 6.40 points in September of 1985

New moves  to tackle cost of living include offering Rs. 2,000 worth essential food packs to lowest income families and wheat flour at a concessionary rate to estate worker families.

Accordingly, the Cabinet of Ministers approved on Monday to provide 15 kg of wheat flour monthly at a concessionary rate to 115,867 beneficiary families working in the estate sector.

“The government will provide wheat flour at a concessionary rate of Rs. 80 which is sold at Rs. 120 in the market.” Trade Minister Bandula Gunawardena said.

He noted that the move was taken to ease the economic issues faced by estate families due to the unprecedented economic conditions. 

Gunawardena also pointed out that the initiative was a proposal by State Minister of Estate Housing and Community Infrastructure Jeevan Thondaman and it was presented on behalf of State Minister of Cooperative Services, Marketing Development and Consumer Protection Lasantha Alagiyawanna.

This initiative is included in the massive, but critical relief package worth Rs. 229 billion announced by Finance Minister Basil Rajapaksa last month. 

The Cabinet of Ministers also approved a proposal to provide Rs. 2,000 worth locally sourced essential food items relief packages to 40 identified low income families in each Grama Sevaka division on a monthly basis.

“These are the lowest income families in each Grama Sevaka division that are not included in the Samurdhi as well. 

On the recommendation of the relevant Divisional Secretariat, a digital card will be issued to the beneficiary family to purchase locally sourced essential goods worth Rs. 2,000 provided at concessionary rates via ‘home shops’ of their respective Grama Sevaka division,” said Trade Minister Gunawardena. 

The Paddy Marketing Board (PMB) said there is a better harvest from the Maha season despite the fertiliser crisis and the forecast. 

“The 2021/22 Maha season commenced while facing several challenges. However, there is a bigger harvest than we expected for the season,” PMB Vice Chairman Duminda Priyadarshana disclosed. 

 Based on the data from the Department of Agriculture over 70% of the expected harvest has been reaped thus far. He said that the national program of purchasing paddy was implemented two weeks ago and the PMB has already bought over 35,000 tons during the past two weeks. 

As per the Crop Forecast Report issued by the Department of Agriculture 800,000 hectares of land was used for farming, expecting a harvest of around 3 to 3.2 million tons of paddy. 

However, due to the introduction of organic fertiliser and farmers protested use of it and only 70 percent of crops were forecasted. 

Priyadarshana said they could expect 2.3 million tons of paddy this year, which is sufficient for six to seven months of the rice demand. It was also pointed out that the Government had informed the PMB to secure a buffer stock of paddy with the competitive prices that were announced previously.  

Accordingly, the PMB purchased Nadu paddy from farmers at guaranteed prices of Rs. 90 per kg, Samba paddy at Rs. 92 per kg and Keeri Samba paddy at Rs. 95 per kg. 

He said the mechanism had encouraged the farmers to handover their crops to the Board regardless of the various claims. “We are optimistic that there will be no possibility of an unusual price increase in rice or any shortage this year,” he added. 

Prayadarshana also stressed that a transportation fee of Rs. 2 per kilo will be provided to farmers who bring their harvest to PMB centres. During last harvesting season farmers were only given Rs. 1.50 per kilo as transport allowance.