"Reducing Income Disparity and Ensuring Affordable Essentials for All Sri Lankans", An Open Letter to the President of Sri Lanka and Political Leade

Anura Kumara Dissanayake Ranil Wickremesinghe Sajith Premadasa Namal Rajapaksa

Dear President and Respected Leaders of Sri Lanka,

As a friend and supporter deeply invested in Sri Lanka’s well-being, I write to you from India. While the country faces significant economic challenges, there is hope in fostering inclusive growth, reducing income disparity, and making essentials affordable for all Sri Lankans.

The Economic Situation and Its Impact on the Vulnerable

The economic downturn has had devastating consequences for Sri Lanka’s lower-income population. As of 2022, the poverty rate surged to 25%, with urban poverty rising to 15%, exacerbated by inflation that peaked at 69.8%.

Despite inflation easing to around 4% by mid-2023, the cost of living remains high, and income inequality has widened. Access to food, education, and healthcare has become increasingly difficult for the majority.

Addressing Income Disparity

Reducing income disparity is critical to ensuring Sri Lanka’s recovery benefits every citizen. Several measures can support this goal:

1. Enhance Social Safety Nets: Expanding social protection programmes, such as conditional cash transfers, subsidies for essential goods, and targeted support for the poorest households, would alleviate the impact of inflation. For example, Sri Lanka could replicate India’s Public Distribution System (PDS), which provides subsidised food to millions of low-income households.
2. Affordable Access to Essentials: Food insecurity remains a major issue. Sri Lanka should negotiate favourable trade terms with India for staple commodities like rice and wheat, which could reduce domestic food prices and ensure access to essentials. Direct subsidies on fuel and essential items such as cooking oil, gas, and rice would help those most in need.
3. Improve Agricultural Productivity: Over 20% of Sri Lankans rely on agriculture for their livelihoods, but productivity still needs to improve. Investment in modern farming techniques and sustainable agriculture would help farmers increase their income. Sri Lanka could boost its agriculture sector and create more jobs by collaborating with India for agricultural technology and knowledge-sharing.
4. Skills Training and Employment Opportunities: To address unemployment and low wages, Sri Lanka should invest in vocational training programmes. India’s vast expertise in technology and education can help provide the skills needed to transition workers into higher-paying jobs. Moreover, supporting small and medium-sized enterprises (SMEs) and promoting entrepreneurship can create job opportunities, especially for the youth.

Cooperation with India for Economic Resilience

Strengthening Sri Lanka’s relationship with India is key to its economic resilience. India provided $4 billion in financial assistance to Sri Lanka in 2022 alone, which reflects the strong ties between our countries. Expanding this cooperation can further help Sri Lanka stabilise its economy.

1. Affordable Imports: India can supply affordable food imports, such as rice, wheat, and sugar, reducing inflationary pressures on essential items. With food accounting for nearly 30% of Sri Lankan household spending, lowering the cost of staples would have a significant impact on the poorest segments of society.
2. Renewable Energy Collaboration: Sri Lanka’s reliance on imported fuel has been draining its foreign reserves significantly. Sri Lanka can reduce energy import costs by partnering with India toward renewable energy. Developing solar and wind energy sources will also provide affordable electricity to households, further easing financial burdens on families.
3. Tourism and Employment Growth: Tourism remains a crucial sector for Sri Lanka’s economy. By collaborating with India to promote joint tourism ventures, particularly in cultural and ecological tourism, both countries can boost tourism revenues and create jobs, particularly in rural and coastal regions.

Conclusion: An Inclusive Economic Recovery

A path to recovery must be grounded in inclusivity, ensuring that the poorest citizens can afford food, housing, and healthcare while creating opportunities for upward mobility. Partnering with India in key areas such as trade, agriculture, and renewable energy can significantly contribute to making essential goods affordable and reduce income disparity.

Now is the time for bold action and collaboration. Sri Lanka’s leaders have the opportunity to forge a new chapter in the country’s economic journey by addressing inequality and building a future where every citizen can thrive.

Yours sincerely,

Javed Ahsan

Indian Supporter of Sri Lanka’s Progress and Growth

Bibliography

Asian Development Bank (2023) Sri Lanka Economic Outlook Report. Available at: https://www.adb.org/countries/sri-lanka/economy (Accessed: 13 October 2024).

Central Bank of Sri Lanka (2023) Annual Report 2022. Colombo: Central Bank of Sri Lanka. Available at: https://www.cbsl.gov.lk/en/publications/economic-and-financial-reports/annual-reports (Accessed: 13 October 2024).

International Monetary Fund (2023) Sri Lanka: 2023 Article IV Consultation and Request for an Extended Arrangement under the Extended Fund Facility. Washington, DC: International Monetary Fund. Available at: https://www.imf.org/en/Publications/CR/Issues/2023/Sri-Lanka-2023-Article-IV-Consultation (Accessed: 13 October 2024).

World Bank (2022) Sri Lanka Economic Update: Navigating Multiple Crises. Available at: https://www.worldbank.org/en/country/srilanka/publication/economic-update-october-2022 (Accessed: 13 October 2024).

World Food Programme (2023) Sri Lanka: Food Security Update. Available at: https://www.wfp.org/publications/sri-lanka-food-security-update (Accessed: 13 October 2024).

Courtesy: https://javedahsan.com/2024/10/13/open-letter-to-the-president-of-sri-lanka-and-political-leaders/

#SriLankaEconomy, #ReduceInequality, #AffordableEssentials, #PovertyReduction, #IncomeDisparity, #SocialSafetyNets, #EconomicGrowth, #IndiaSriLankaRelations, #FoodSecurity, #InclusiveGrowth, #RenewableEnergy, #AgriculturalReform, #SriLankaRecovery, #PublicWelfare, #SupportForThePoor