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No response yet received from India regarding the requested loan

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It is reported that Sri Lanka has not yet received a successful response regarding the loan requested from India for fuel imports.

Sri Lanka had earlier asked for another $ 500 million loan, but no final agreement has been reached. The loan was planned to be used exclusively for fuel imports.

Failure to reach a final agreement on $ 500 million risks a complete shutdown of fuel imports.

The loan amount is sufficient for the import of fuel for 4 months and accordingly, in the next few months, Sri Lanka will have to look at other options for fuel import. However, so far there is no successful alternative.

It has been proposed to grant leave to public servants and schools for a period of two weeks as a temporary solution to the fuel problem and the final decision on that was to be taken today.

Govt. is preparing to increase fuel prices again – Trade Unions

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The Petroleum Trade Unions warn that the government is preparing to increase fuel prices again

Convener of the United Trade Union Alliance Ananda Palitha states that the price revision will be effective from June 24 and that the price of petrol, as well as diesel, will exceed Rs. 500 per liter.

Palitha further states that at present a severe fuel shortage has arisen in the country as a precautionary measure to increase prices. He also says that fuel distribution will not be regulated until the price hike is implemented.

SmashTaps is now Great Place to Work certified

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Photo Caption:

  1. The team at SmashTaps

SmashTaps, a leading digital product studio in Colombo was recently awarded the Great Place to Work certification by the global authority on workplace culture, Great Place to Work Institute. This recognition well reflects the company’s people-centric approach and workplace culture, with values that put its people first. 

The employees at SmashTaps were assessed through the Trust Index Survey to share their experiences and interactions across five key values such as credibility, respect, fairness, pride and camaraderie, followed by a Culture Audit Management Questionnaire covering a comprehensive and holistic evaluation into existing policies and practices towards its people. 

The findings revealed that 100pct of its employees said that it has a friendly and welcoming work environment where they’re able to have fun and indulge with the others, and that there is effective communication between the management and employees with measures that encourages active and constant dialogue and participation. 

‘We couldn’t be happier to be recognized as a great workplace. This achievement speaks volumes of the culture we foster here at SmashTaps where each and everyone share the same burning passion of helping startups and companies around the world and in building awesome digital products that can make a meaningful impact,’ said Praveena Sarathchandra, Founder/CEO of SmashTaps (Pvt) Ltd.

Further, 99pct of them felt the company is equal, impartial and just in its practices and that its managers prioritize their wellbeing in providing a safer and healthier environment to ensure employees have a good work-life balance, recognizing the impact that work could have on their personal lives. They also felt well respected and supported, with access to numerous collaboration and training opportunities and resources including being acknowledged highly of their professional accomplishments. 

Employees rated SmashTaps with 99pct on innovation, strongly indicating its ability to continuously improve, quickly adapt, and generate game-changing opportunities in a highly evolving landscape where challenging, problem-solving skills thrive. 

At SmashTaps, employees can enjoy salaries pegged to USD, flexible work hours including the ability to work from home, access to some of the most popular learning platforms, comprehensive medical coverage among various other perks and benefits one could expect from a young, talented and vibrant startup culture.

SmashTaps celebrated its seventh-year anniversary during end last year, moving into a new and vibrant office. The young and talented team of dreamers, thinkers, designers, and coders at SmashTaps works closely with startups, scale-ups, and enterprises both locally and internationally to help them implement innovative and custom digital solutions covering product strategy, brand identity, UI/UX design and web and mobile development in addition to launching its own products.

Fuel crisis intensifies – School will be closed for two weeks?

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The government has focused on closing down state institutions for two weeks as a temporary solution to the crisis facing the country, including fuel shortages. It has been proposed to give two weeks’ leave to schools and conduct online learning activities.

However, no final decision has been taken so far and a special discussion will be held today to take a final decision.

It has been suggested that the country should be locked down in the wake of the fuel crisis, but the President and the Prime Minister yesterday informed government officials that there was no need to take such action.

The President and the Prime Minister have stated that another fuel tanker is scheduled to arrive in the country next week and there will be no shortage of fuel due to this.

Energy Minister announces date on which the ‘fuel ration system’ will come into effect

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Energy Minister Kanchana Wijesekera says the fuel ration system is expected to be operational from the first week of July as an experiment.

That is why we propose to set up a ration system as an experiment from the first week of July. At that time I saw how one shed was registered as a misinterpretation and how to refuel when we went elsewhere. The nearest filling station will be registered and the number of liters given to you in a week – for example, if you are given 100 liters, you can get at least 60 liters out of that 100 liters from that registered filling station, so that you can buy the remaining 40 liters from any other filling station in the country. Discussions are still going on and we have not yet formulated that methodology. So it will take us two or three weeks to comeup with this. ”

Minister Kanchana Wijesekera stated this addressing a media briefing held at the Ministry of Energy yesterday (16).

Another fundamental rights petition filed against the appointment of Dhammika Perera

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Another fundamental rights petition has been filed in the Supreme Court against the appointment of Dhammika Perera to fill the vacancy left by Basil Rajapaksa as the National List Member of Parliament for the SLPP.

Accordingly, the petition seeks an order restraining Dhammika Perera from being sworn in as a Member of Parliament and invalidating the gazette notification issued by the Election Commission appointing him as a Member of Parliament.

The petition was filed by Roel Raymond, editor-in-chief of the Roar website.

According to the petition, Dhammika Perera’s name was not included in the district nomination lists or national lists of the Sri Lanka People’s Front in the 2020 general election and his appointment as a Member of Parliament for that party is unconstitutional.

The General Secretary of the SLPP Sagara Kariyawasam, Speaker Mahinda Yapa Abeywardena, the Secretary General of Parliament, members of the Election Commission and the Attorney General have been named as respondents in this petition.

The Executive Director of the Center for Policy Alternatives, Pakyasothy Saravanamuttu, had earlier filed a fundamental rights petition in the Supreme Court against Dhammika Perera’s appointment as a Parliament Member.

Duminda Silva removed from the National Housing Development Authority chairman post

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Duminda Silva has been removed from the post of Chairman of the National Housing Development Authority.

Accordingly, Rajiv Sooriyarachchi has been appointed to the post.

Rajiv Sooriyarachchi was previously the Vice President of the Airport and Aviation Company.

Duminda Silva, who was sentenced to death, was re-appointed as the Chairman of the Housing Development Authority after his release on a presidential pardon. The Supreme Court ordered the suspension of the Presidential pardon on a petition filed before the Supreme Court challenging the procedure.

Although he was to be remanded again, he is currently receiving treatment at the hospital and is in the custody of prison officials.

Nightmare’s End?

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Rohini Hensman Sidecar Blog New Left Review 13 June 2022

I am not in Sri Lanka, and I feel torn about what is happening there. Acute anxiety about how millions will survive the shortages of food, fuel and medicine jostles against a glimmer of hope that this crisis could be the beginning of the end of a decades-long nightmare. Since the country gained its Independence in 1948, various sections of the population have been targeted by its ruling bloc: threatened with losing their homes, livelihoods and often their lives. They have fought back, but each section has been isolated and crushed by an increasingly centralized and ruthless state. Now, for the first time, the vast majority of the population has risen in revolt. Criticism of the dictatorship is widespread, and divisions between working people may finally be healing.  

It is not easy to disentangle the different strands of Sri Lanka’s long-standing political crisis, but let me try. Equality before the law – a key component of any democratic republic – was never supported by the ruling class that took power in independent Ceylon. The two main parties, the United National Party (UNP) and the Sri Lanka Freedom Party (SLFP), both endorsed ‘Sinhala-Buddhist’ supremacism. This meant persistent discrimination against ethno-religious minorities, which began right after Independence, when the UNP passed legislation disenfranchising around a million Tamils of recent Indian origin and stripping them of their citizenship. Most of those affected were plantation workers in the central hill country, who were already isolated from other sections of the working class by their confinement to the plantations.

The next major assault on equality occurred when the SLFP, led by S.W.R.D. Bandaranaike, came to power in 1956 and passed the Official Language Act, or ‘Sinhala Only Bill’. The Act discriminated against all Tamil-speakers, especially in public sector employment. It sparked major protests followed by the anti-Tamil riots of 1958, in which far-right Buddhist monks played a major part, assassinating Bandaranaike the following year for not going far enough in persecuting Tamils. The leadership of the SLFP was taken over by his widow Sirimavo Bandaranaike. Tamil was downgraded and English ceased to act as a link language, in a deliberate attempt to obstruct dialogue between communities.

Such measures were opposed by the Trotskyist Lanka Sama Samaja Party (LSSP) and the Communist Party of Ceylon (later the Communist Party of Sri Lanka, CPSL). Yet, once they failed to prevent the ratification of the anti-Tamil laws, the left parties did not continue the struggle against discrimination by building solidarity among working people from different linguistic and religious groups. Instead, they formed an alliance with the SLFP in 1964, and the parties jointly established the United Front (UF), which swept to power in 1970. At that point, principled members of the left parties split off, and Tamil socialists were left demoralized by the capitulation of their leaders. The only force that could have carried through the democratic revolution had splintered.

Once in power, the UF’s Land Reform Laws of 1972 and 1975 nationalized the plantations. Yet rather than distributing the land to Tamil workers – who were driven out and left to starve – it was handed to Sinhalese government supporters. In response, the Tamil United Liberation Front (TULF) called for the creation of an independent Tamil Eelam. Militant groups, most notably the Liberation Tigers of Tamil Eelam (LTTE), were established to fight for this goal. The LTTE initially attracted some Tamil socialists who believed it was waging a justified struggle for self-determination; but, in reality, the group was always committed to creating a Tamil-supremacist state by ethnically cleansing and killing Sinhalese. It even targeted Tamil-speaking Muslims in the Northern and Eastern Provinces which it claimed as its territory.

Despite all the privileges given to the Sinhalese majority by the UF, dissatisfaction with the regime remained widespread. Significant gains in healthcare and education were cancelled out in the public mind by inflation and food shortages. In 1971, the Janatha Vimukthi Peramuna (JVP or People’s Liberation Front), led by Rohana Wijeweera, launched an armed uprising to overthrow the government – backed overwhelmingly by Sinhalese young men for whom the problems of unemployment and poverty had not been solved by Sinhala Only.

Notwithstanding his self-description as a ‘modern Bolshevik’, Wijeweera’s revolutionary horizons were narrowed by a Sinhala-supremacist outlook which characterized Tamil plantation workers as mere tools of Indian expansionism. His uprising was powerless to reach across ethnic lines, and ultimately crushed by the UF government after a state of emergency was declared. Nonetheless, antipathy towards the ruling party lingered. When parliamentary elections were held in 1977, the UNP led by J.R. Jayawardene returned to power with 140 seats out of 168. He used this super-majority to enact a new constitution and anoint himself Executive President – with almost unlimited powers.

Sinhala dominance was entrenched under Jayawardene, with anti-Tamil pogroms sweeping the country just a month after his election. The 1979 Prevention of Terrorism Act precipitated the torture, disappearance and extrajudicial killing of thousands of Tamils. In 1981, an orgy of state-sponsored arson, rape and looting in Jaffna included the burning of the public library, with around 95,000 books and ancient manuscripts inside. The violence then shifted to the east, south and hill-country, with thousands of Tamils evicted from their homes and robbed of their possessions. The even more gruesome massacres of 1983 initiated a civil war between the LTTE and government, which lasted some 26 years.

All this perpetuated the trend set by Jayawardene’s predecessors. But what distinguished his regime was its disastrous neoliberalization programme and unabashed authoritarianism. Production of consumer goods, both agricultural and industrial, was hit by cheaper imports in the 1980s, while the import of luxuries previously unavailable in Sri Lanka added to the drain on foreign exchange. Remittances from migrant workers, tea exports, tourism and new foreign investments failed to fill the gap, due to generous tax holidays and tariff-free imports of inputs. This led to increasing reliance on foreign debt, laying the basis for the current economic crisis.

Meanwhile, Jayawardene attempted to crush all dissent and extinguish democracy. His newly established Jathika Sevaka Sangamaya (JSS) was deployed in anti-Tamil pogroms, as well as killing opposition supporters, judges, trade unionists and striking workers, all with the collusion of the police. The second JVP insurrection, starting in mid-1987 and ending in late 1989, when Wijeweera was captured and executed, left an estimated 40,000-60,000 Sinhalese slaughtered in that period alone. Death squads targeted opponents of Jayawardene and his successor Ranasinghe Premadasa, frequently abducting and torturing them to death. Ranil Wickremesinghe, the current Sri Lankan Prime Minister, was a government minister throughout this period. The current president, Gotabaya Rajapaksa, was an army commander. Both were implicated in the mass murder of Tamils and Sinhalese alike.

Since that period, the Executive Presidency has been subjected to an ongoing tug-of-war. Abolishing it has so far proved elusive, because the courts have ruled that this would require a two-thirds majority in parliament plus an absolute majority in a referendum. Yet more modest reforms have occasionally been passed to restrict the presidency’s power. Under the presidency of Chandrika Kumaratunga, from 1994 to 2005, attacks on democracy declined and the 17th Amendment was instituted, removing the president’s ability to unilaterally appoint people to institutions like the Election Commission and Supreme Court. This tentative progress was then reversed under Mahinda Rajapaksa, as state-backed death squads were revived to target dissidents. In 2009, the LTTE was finally defeated in the civil war’s horrific climax, in which an estimated 40,000 Tamil civilians were killed. In tandem, an 18th constitutional amendment reversed Kumaratunga’s reforms and abolished the presidency’s two-term limit.  

Rajapaksa rejected the UN’s demand for an independent investigation into reports of war crimes, framing this as an ‘anti-imperialist’ position. But though his rhetoric played well with some of the electorate, he lost credibility by contributing to the country’s mountain of foreign debt – with new creditors including the Chinese government and private buyers of sovereign bonds. With their popularity in decline, the president and his brother Gotabaya Rajapaksa – who, as Defence Secretary, controlled the intelligence agencies – tried to salvage their careers by scapegoating the Muslim population. They funded far-right groups of Buddhist monks, using them to violently attack Muslims while mounting an Islamophobic propaganda campaign through state-controlled media. Under the radar, the Rajapaksas also funded Islamist militants to fight against the LTTE – who remained on the government payroll as informants despite credible intelligence that they had been radicalized.   

Mahinda Rajapaksa was voted out of office in 2015, having alienated a large section of the Sinhalese population with the scandalous nepotism and corruption of his regime. In his place, ethnic minorities voted for a fragile Good Governance (Yahapalanaya) coalition between SLFP rebel Maithripala Sirisena and Ranil Wickremesinghe. The new coalition once again curtailed the powers of the president and reinstated the two-term limit with the 19th Amendment. But it, too, fell apart. The final blow to its credibility was the Easter Sunday terrorist attack in 2019, which killed 269 people in locations across the country. As it turned out, the bombings were perpetrated by the very same Islamists that the Rajapaksas had been bankrolling. Subsequent investigations revealed that during the Yahapalanaya regime, members of the terror group, including mastermind Zahran Hashim, continued to be paid and protected from prosecution by officials who remained loyal to Gotabaya. This was despite Hashim’s proclamation of allegiance to ISIS and ample evidence that his followers were accumulating arms and explosives.  

Yet, counterintuitively, it was the Rajapaksas who benefited from the Easter Sunday massacre. In the resulting panic, the government was weakened and Gotabaya was able to mount an effective presidential campaign, running as the ‘national security’ candidate. Later that year, he topped the poll with 52% of the vote. An alliance led by the Rajapaksas’ new party, the Sri Lanka Podujana Peramuna, also won the parliamentary elections with a large enough majority to pass the 20th Amendment, reversing the 19th. Gotabaya proceeded to pack the cabinet with family members including Mahinda, who was appointed prime minister.  

By this time the economy was already sinking under $51 billion of foreign debt, much of it incurred by the family’s vanity projects and endless siphoning of money out of the country. The Gotabaya regime’s tax cuts made the debt unsustainable, and an overnight ban on imports of chemical fertiliser – implemented in the face of farmer protests – led to a colossal decline in crop yields. As foreign reserves ran out, domestic production of food and exports plummeted, leading to escalating unemployment, sky-rocketing inflation, power cuts and long queues to buy basic goods.

All but the very rich have been affected by this meltdown. Workers have lost jobs, farmers are in crisis and fishermen have no fuel to power their boats. Galloping inflation has eroded wages, and parents have gone hungry in order to feed their children. So, in early March 2022, people of all ages, from all ethnic communities, came out spontaneously with home-made placards bearing slogans such as ‘Go Home Rajapaksas’. They called for democratic reform, the immediate resignation of the president and his government, and an end to economic mismanagement.  

The government ignored these initial protests, but at the end of March a more militant demonstration near Gotabaya Rajapksa’s residence in Colombo was met with water cannons, tear gas and dozens of arrests. There followed a state of emergency, plus a nationwide curfew and social media ban. This heavy-handed response was expected to stamp out the unrest, but it only enabled it to spread. The president subsequently changed tack, trying to appease the demonstrators by reversing his authoritarian measures and forcing the entire cabinet (apart from Mahinda) to resign. But the protests kept up their momentum, and on 9 April activists occupied Galle Face Green: a park in Colombo facing the Presidential Secretariat. This now iconic site has been renamed ‘GotaGoGama’. The crowds were joined by a delegation from 1,000 different trade unions, who staged a general strike – the first in four decades – calling for the government to step down. 

A month later, pro-government thugs began to carry out violent attacks on the protests. Yet their resistance was so powerful that Mahinda was ultimately compelled to step down. He was evacuated from his home by security forces while the military was deployed with shoot-on-sight orders. With international criticism of the government growing, Gotabaya installed Ranil Wickremesinghe – the leader of the United National Party – as Prime Minister on 12 May. But although Wickremesinghe may be popular with the IMF, he is deeply disliked by the masses. His proposed 21st Amendment has been widely seen as a betrayal of the protesters’ demands, and his invitation to youth groups to sit on parliamentary committees has been met with the silence it deserves.

The numbers in favour of abolishing the Executive Presidency are currently smaller than those calling for Gotabaya’s resignation, but the demand is gaining traction. This creates an opening for activists, who can now push for a broader process of political restructuring which would devolve power to provincial and local governments. It also provides a space for progressive solutions to the country’s economic crisis. Socialist economists have long advocated a public audit that would repudiate Sri Lanka’s illegitimate debt, in defiance of the IMF. They have argued for importing only essential items like food and medicine and putting in place a public distribution system, while encouraging cooperative producers and defending public ownership of utilities, healthcare and education.

At GotaGoGama, Sinhalese and Tamils have reportedly celebrated New Year together, and various religious groups have shared in the breaking of the fast during Ramadan. Meanwhile, in the south, people have turned out for the very first time to mourn the Tamils killed in the civil war. Such developments suggest an easing of ethnic and religious tensions, despite the Rajapaksas attempts to stoke them. When I was conducting interviews for my 1993 book, Journey Without a Destination, the vast majority of Tamil and Muslim refugees and displaced people were admirably free of ethnic hatred, despite all they had suffered. I heard numerous stories of Sinhalese friends, neighbours, colleagues and even total strangers saving the lives of Tamils. I also encountered prejudice, especially among the Sinhalese, yet this flowed from the profound ignorance engendered by the Sinhala Only policy, as well as the suppression of dissident voices and relentless disinformation in the media. When experience contradicted propaganda, though, people were often willing to think anew. And this is precisely what is happening at present. Perhaps, if Sri Lanka’s fractured left can harness this sense of solidarity, the economic catastrophe may create the conditions for a democratic breakthrough.

SL Public Sector Accounting and Audit training strengthen with US aid

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U.S. Launches Training to Strengthen Sri Lanka’s Public Sector Accounting and Auditing Capabilities’’

The U.S. Government, through its development agency, the U.S. Agency for International Development (USAID), is partnering with the Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka) and the Association of Public Finance Accountants of Sri Lanka (APFASL) to strengthen Sri Lanka’s accounting and auditing sectors.

This partnership will train approximately 600 public sector accountants and audit professionals, and 1,200 officers on IT applications and other platforms that support strategic decision making.

Speaking at the official launch of the training program, U.S. Ambassador to Sri Lanka, Julie Chung said, “The U.S. is excited to provide public sector professionals with the necessary tools to further strengthen their knowledge on compliance requirements and contribute towards greater accountability in the public sector.

 As one of Sri Lanka’s longstanding development partners, our vision is to help the country to emerge from crises stronger than before, she added.

The training will focus on Sri Lanka’s Public Sector Accounting Standards (SLPSAS), which provide a framework for the preparation and presentation of financial statements in compliance with international best practices for quality financial accounting and reporting.

The training, conducted in all nine provinces, will strengthen the capacity of public sector accounting and auditing professionals on the recent developments and applications of SLPSAS 11-20, enhancing public sector financial management functions and reporting as well as improving financial analysis, planning, and management in the public sector.

“Strong public financial management is very critical for Sri Lanka to achieve its long-term goals. Therefore, APFASL in its capacity as the public sector wing of CA Sri Lanka, has been playing a critical role in strengthening public financial management practices in line with international best practices.

 The collaboration with USAID comes at a very opportune time as we continue to strive to enhance public sector accounting and auditing professionals so that they continue to remain relevant.

This partnership with USAID is also a testament to the important work both CA Sri Lanka and APFASL have been doing to enhance the sector”, said Mr. Sanjaya Bandara, President of CA Sri Lanka.

Additionally, the training program will strengthen public sector finance professionals’ effective use of IT systems to support strategic decision-making across all provinces.

As the facilitator of the training, the APFASL will support the implementation of the National Policy on Fiscal Management and enhance financial management systems in public institutions, universities, and local governments.

“Since its inception, APFSL has been at the forefront in developing the professional skills and expertise of the public sector accountants and auditors, and chief among the numerous groundbreaking initiatives the association launched was to publish the Sri Lanka Public Sector Accounting Standards., said Mr. V. Kanagasabapathy, President of APFASL.

WFP says 66 percent Sri Lankans reduce their daily meals

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The World Food Programme (WFP) says 66 percent of Sri Lankans surveyed have been found to have reduced the number of meals eaten daily.

The WFP and the Government conducted a joint rapid food security assessment in April.

It surveyed the poorest households in 17 districts and found that 86 percent are using coping mechanisms such as purchasing cheaper, less nutritious food (95 percent); limiting portion sizes (83 percent); and reducing the number of meals eaten daily (66 percent).

Sri Lanka is facing its worst economic crisis since its independence in 1948. The population is struggling to meet their daily food and nutrition needs in the face of shortages and higher food prices for food and fuel.

Employment and household incomes have been battered by COVID and this latest economic crisis, directly affecting people’s ability to afford food and other essential items.

Food inflation in Sri Lanka is 57 percent, driven by rising global food prices, dwindling foreign reserves, unfavourable exchange rates and low domestic food production.

The United Nations is appealing for US$ 47.2 million to meet the most urgent humanitarian needs of 1.7 million people until September. Of this, USD10 million is for WFP activities.

The Government is providing cash transfers to 3.3 million people through its social safety net programme with support from international financial institutions. However, several vital national nutritional support programmes have stalled due to lack of funds.

Sri Lanka’s average monthly household income was estimated at Rs. 76,414 prior to the country’s economy fell deep into a recession and incomes deteriorated in the two years of the pandemic in 2020 and 2021, according to Department of Census and Statistics (DCS) data.

While the average household income was over Rs.75, 000 and appeared attractive, this reflects the income for an average household comprising 3.7 people and there are also vast disparities between the three segments—urban, rural and estate. 

The latest Household Income and Expenditure Survey 2019 results published by the Department of Census and Statistics recently showed that while the average income of an urban household was at Rs.116,670, the rural family generated an average of Rs.69,517 which has become even weaker for an estate sector family at Rs.46,865. 

While the results reflect the average income level when the country entered the pandemic, during the two years of the pandemic the country saw its incomes falling amid hyperinflation resulting in families losing 40 percent of the value of their nominal incomes within just one year through May 2022, based on the official consumer price indices. 

The survey also found out that the poorest 20 percent of the households in Sri Lanka were generating only Rs.17,572 while the poorest 40 percent of the households generating Rs.26,931. 

However, the richest 20 percent of the households in Sri Lanka on average earn Rs.196,289 per  month, which may have grown in the last two years in nominal terms, although their purchasing power fell sharply in the last six months due to double-digit inflation, which accelerated into runaway prices from March onwards. 

Meanwhile, the middle 60 percent of the households generated an average monthly income of Rs.56, 079 for a family of 3.7 persons. 

This reflects how badly the living standards of 80 percent of the households in Sri Lanka have been affected while the bottom 40 percent may have been plunged into dire poverty due to inflation which acts as an insidious tax on people’s incomes.