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Sri Lankan tea pickers’ dreams shattered by economic crisis

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BOGAWANTALAWA, Sri Lanka, May 5 (Reuters) – On a lush plantation in Sri Lanka, Arulappan Ideijody deftly plucks the tips of each tea bush, throwing them over her shoulder into an open basket on her back.

After a month of picking more than 18 kg (40 lb) of such tea leaves each day, she and her husband, fellow picker Michael Colin, 48, receive about 30,000 rupees, worth about $80 after the island nation devalued its currency.

“It is not close to enough money,” Arulappan, 42, said of their earnings, which must support the couple’s three children and her elderly mother-in-law.

“Where we used to eat two vegetables, now we can only afford one.”

She is one of millions of Sri Lankans reeling from the island’s worst economic crisis in decades.

The COVID-19 pandemic severed the tourism lifeline of the Indian Ocean nation, already short of revenue in the wake of steep tax cuts by the government.

Left critically short of foreign currency to buy essential supplies of food, fuel and medicines, Sri Lanka has turned to the International Monetary Fund for an emergency bailout. read more

Rampant inflation and shortages sparked weeks of protests that have sometimes turned violent.

Plantation workers like Arulappan, who hail predominantly from the island’s Tamil minority, are affected more than most, as they own no land to provide a cushion against soaring food prices.

Her family is one of 17 living in traditional “line homes”, or box-like, single-storey terraces unchanged in design from the days of Britain’s colonial rule, which ended in 1948.

Emerald-green hills stretch for miles around, while rising over the cottages is fragrant woodsmoke from burning tea branches the families use for their cooking fires.

Their fortunes mirror the rise and fall of an economy that emerged from a decades-long civil war in 2009.

Buoyed by a booming tourism industry and exports of items such as garments and plantation products like tea, rubber and cinnamon, Sri Lanka attained a GDP double almost that of neighbouring India in 2020.

Arulappan left school at 14 and worked in a garment factory before marrying and moving to the plantation in Bogawantalawa, a valley in the central highlands reputed for its fine teas and a drive about four hours east of Colombo, the commercial capital.

The job’s flexible hours allowed her to care for her children and start a small business selling vegetables to other workers on credit.

But the pandemic was a setback for the family and the country, shuttering the economy for months and cutting off the tourism sector, a key earner of foreign exchange.

“There were days where we would only eat rice,” Arulappan said.

INFLATION SPIRAL

The tea industry, which supports hundreds of thousands of people, also suffered from a controversial government decision last year to ban chemical fertilisers as a health measure. Though later reversed, the ban has left fertilisers in short supply.

First-quarter tea production fell 15% on the year to its lowest since 2009, with the Sri Lanka Tea Board saying dry weather had taken a toll of bushes that received insufficient fertiliser after the ban.

Coupled with lengthy power cuts, fuel shortages and soaring inflation, that helped push the industry to “near total breakdown”, said Plantation Association spokesman Roshan Rajadurai.

The crisis has left Arulappan unable to make the last two months’ repayments on a series of high-interest loans she took to start her business, defray the costs of a family wedding and pay off other debts.

Food inflation is approaching 50% on the year, with transport nearly 70% more expensive, official figures show, although in practice the figures are even higher.

The price of flour has doubled over the last year, putting out of reach for many plantation workers the coconut-infused flatbreads they nibble while plucking tea.

“We have had to switch to eating rice. But even that is very expensive now,” Arulappan said.

The cost of the two-kilometre bus ride to school for her two younger children has also more than doubled in recent months, but the couple continue paying for private tuition to ensure them a better life.

“I never want to see my kids work in a plantation,” Michael said.

However, the crisis has doomed plans for university education for their eldest son, Akshon Ray.

Arulappan saved up for two years for a laptop she promised the 22-year-old if he got good results on his final exams.

On top of the family’s metal wardrobe lies a folder holding the brochure for the university where he planned to study. But the financial burden was too much.

“You have to support the family,” Arulappan told her son just before he left to work in a broom factory in Colombo.

She does not yet know where he is staying.

REUTERS

IUSF continues protest despite repression (VIDEO)

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The Police continued to attack the march organised by the Inter University Students Federation (IUSF) who had broken roadblocks near the Parliament premises, leading to a tense situation. The Police continued to disperse the protesters by launching tear gas attacks and the students were seen marching forward regardless of the repression.

Meanwhile, the protest will not be dissolved and the students have decided to stay on the ground.

MIAP

IUSF Walk begins! (VIDEO)

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The walk organised by the Inter-University Students Federation (IUSF) has commenced and is marching by.

The walk carries the slogan ‘Let’s Oust the Government, Let’s Change the System!’

MIAP

Issuance of fuel limited again!

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Restrictions will be imposed on the supply of fuel for vehicles, announced the Ceylon Petroleum Corporation.

Accordingly, the issuance of fuel for motorcycles will be limited to Rs. 2,000, for three wheelers to Rs. 3,000 and for cars, vans and jeeps, Rs. 8,000.

However, fuel will be issued to buses, lorries and other commercial vehicles without any limit.

MIAP

IUSF launches another walk (PHOTOS)

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The Inter University Students Federation (IUSF) today (05) has launched another walk demanding the stepping down of the government and a system change,

The walk has commenced from the University of Sri Jayawardenapura and is currently marching towards Rajagiriya.

MIAP

New price formula determining fuel prices to meet Cabinet next week

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A price formula will be introduced to determine the fuel prices, said Power and Energy Minister Kanchana Wijesekara speaking to Parliament today (05).

The fuel price formula is being introduced to minimise the losses incurred by the Ceylon Petroleum Corporation and not to gain any profit, he added.

A fuel price formula was introduced during the Good Governance regime but was revoked upon the current regime’s reigning in. However, many parties had been suggesting over the months that a fuel price formula should be introduced to address the continuing rise in fuel prices.

It has been decided to use railway transport to curb the losses incurred by the CEYPETCO, Wijesekara went on, adding that there is no shortage of petrol in the country and that the CEYPETCO has enough petrol stocks meeting the demand.

He added that there is a shortage of diesel given that most of the diesel has to be used for power generation due to the breakdown at the Norochcholai Thermal Power Plant. Nevertheless, it will be possible to end the shortage in the next few days, the Minister further noted.

MIAP

US Dollar surges up to Rs. 375!

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The sell price of the US Dollar has increased up to Rs. 369.99 and the buy price up to Rs. 356.83, the Foreign Exchange of the CBSL revealed.

However, many commercial banks in Sri Lanka bids a higher rate for the US Dollar, revealing its sell price to be over Rs. 370. As of today, even state banks declared the sell price of the US Dollar to be Rs. 375.

Should Sri Lanka fail to find a solution to the forex crisis even by temporary means the value of the US Dollar could be rising above Rs. 500 before the end of the month further depreciating the Sri Lankan Rupee, economic analysts warn.

MIAP

Attorney General summoned to appear before Supreme Court

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The Attorney General has been summoned to appear in the Supreme Court on May 12, based on a petition filed by the Bar Association of Sri Lanka (BASL). The order was made as the petition was taken up today (05).

The BASL filed the petition seeking action to provide essential commodities and services including fuel, gas, electricity and other essential items without any shortage, and the AG has been summoned to inquire as to what steps have been taken to address the shortages.

The petition was taken up before the Supreme Court Bench comprising Justices Preethi Padman Surasena, Arjuna Obeysekara and Mahinda Samayawardena.

MIAP

Pyramid Wilmar to take legal action against defamatory allegations

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Pyramid Wilmar (Pvt) Ltd. said it would be taking legal actions against defamatory allegations levelled against the company involving the importation of sugar by certain parties.

In a statement, the company noted that Pyramid Wilmar, has, at all times, acted fully in compliance with all applicable laws and regulations of Sri Lanka and has conducted itself in an ethical manner upholding the highest standards of corporate behaviour.

Full Statement:

Pyramid Wilmar (Private) Limited and its Board of Directors wish to inform its loyal stakeholders and the general public that, in recent times, there have been several false and malicious defamatory allegations levelled at Pyramid Wilmar (Private) Limited and its Directors, with regard to the importation of sugar during the period October 2020 to February 2021.

Our Company wishes to place on record the fact that it has, at all times, acted fully in compliance with all applicable laws and regulations of the Democratic Socialist Republic of Sri Lanka and has conducted itself in an ethical manner upholding the highest standards of corporate behaviour.

Our Company, being part of one of the leading agribusiness groups in Asia, takes pride in having made immense contributions to the National Economy over the years and takes any defamatory statement made against it and/or its Directors, seriously.

Our Company has already taken steps to initiate legal action in this regard.

Our Company wishes to assure its loyal stakeholders and the general public that it will do its utmost to contribute to the National Economy during these trying times and place on record the fact that the aforesaid defamatory statements are false and baseless.

Purchase of aircraft for SriLankan Airlines postponed for three months

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The purchase of new aircraft for the SriLankan Airlines has been postponed for three months based on a decision by the Committee on Public Enterprises (CoPE), said Chairman MP Prof. Charitha Herath.

The Committee Chairman made this observation while tabling the second CoPE report for the second session of the ninth Parliament.

MIAP