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Monthly cost of living of a family increased to Rs.46,396.

Wednesday, 19 September 2012 - 10:15 AM SL Time

All state employees should be given a salary increase of Rs.13442.50 states National Trade Union Center (NTUC).

This demand is made in a letter sent to the President by the President of NTUC K.D. Lal Kanthe.

In his letter Mr. Lal Kanthe says, According to budget proposals you put before the Nation after you came to power stated salary increases would be carried out from 2006 January according to the increase in living index. However, your government, similar to other statements that have been made, has not taken any measures to make it a reality. According to the living index of 140.8 in January, 2005 the minimum monthly expenditure of a family was Rs.25344/- when calculated according to the government recognized Cost of Living Allowance (COLA) of Rs.180.

According to the new process of calculations carried out by your government on 31st August its value became Rs.165.7 and the Cost of Living Allowance (COLA) became Rs.280. When calculated according to this formula the monthly expenditure of a family vastly increased to about Rs.46,396. In relation to this increase the additional money that should be paid to the working people who earn monthly wages is Rs.21052. The total amount of allowance your government has paid throughout the last 6 years as a result of agitations, strikes and force applied by the trade union movement is only Rs.7609.50. As such, the amount your government has evaded paying to the working people is Rs.13442.50 per worker per month.

The Executive Committee of the NTUC met recently and decided to take trade union action to acquire this amount of money the government has evaded paying to the working people of this country. As an initial step of this procedure we decided to draw your attention to this issue. Hence, we would request you to consider our request and take measures to pay Rs.13442.50 salary increase from the budget to all state employees.

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Roshan2007
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LK Information  19 Sep 2012 03:22:34 GMT  Report for Abuse  
Rupee was depreciated by about 20%. It should have a cascading effect on cost of living.

Those who live form earnings from middle east it may not impact. But the local who are employed in government sector would severely feel the pain.
Roshan2007
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LK Information  19 Sep 2012 04:06:34 GMT  Report for Abuse  
Well if we want to see the positive side. this is it...

All s well with the economy!
* CB says GDP grew 7.2 % in first half of the year
* Inflation spike temporary
* Credit expansion decelerating
* Import decline outpacing export fall

* Positive sentiments at the bourse attracting foreign investors
September 18, 2012, 8:12 pm

The Central Bank issuing its monthly monetary policy statement says corrective measures taken to contain a balance of payments problem were bearing fruit with the economy growing 7.2 percent for the first six months of this year.

The bank ignored signs of a balance of payments crisis, ostracizing economists who raised red flags since June 2011, only to adopt a policy u-turn since February. This resulted in the necessary adjustments being more painful because of the late response of the authorities.

According to the Central Bank, the economy is now doing well with inflation at 9.5 percent last month being only a temporary domestic supply side phenomenon. It has kept policy interest rates steady for the time being.

'The concerted efforts by the Central Bank and the Government earlier this year to curb the high demand for imports and credit are yielding results. Reflecting the impact of the policy measures taken, credit obtained by the private sector has decelerated since the second quarter of 2012, and the policy measures in place are expected to help ensure that the growth of credit will be within the desired level at year end,' the Central Bank said issuing its Monetary Policy Review for the month of September 2012.

'Compared to the average monthly credit expansion of about Rs.52 billion in the first three months, average monthly credit decelerated to around Rs.27 billion during the period from April-July. Benefiting from this moderation, growth of broad money has also decelerated to below 20 per cent in July for the first time this year.

'Nevertheless, the amount of credit available has been sufficient to facilitate reasonably robust economic activity, and as per estimates of the Department of Census and Statistics, the economy recorded a robust growth of 7.2 per cent during the first half of the year.

'Inflation, which increased in June and July, largely due to domestic supply disruptions has eased somewhat, recording a year-on-year change of 9.5 per cent in August. The downward revision of certain administratively determined prices, such as LP gas, and revisions to tariffs and levies on selected food items is expected to provide some respite from temporary increases in inflation arising from supply side shocks.

'Going forward, demand management policies adopted by the authorities are expected to help contain inflation within single digit levels.

'Growth of imports has decelerated considerably since April, outpacing the decline in export growth, resulting in a continued improvement in the balance of trade, such improvement, together with sustained inflows on account of workers remittances and enhanced tourist earnings have helped narrow the deficit in the current account balance.

'Further, the growing positive investor sentiment has resulted in cumulative net inflows of US dollars 229 million to the Colombo Stock Exchange, up to mid-September 2012, while proceeds of the fifth international sovereign bond issued in July and foreign investments in government securities amounting to US dollars 1,725 million in the same period have helped to ease pressure in the external sector, raising gross official reserves above US dollars 7 billion by end July.

'Taking into account the developments discussed above, the Monetary Board of the Central Bank of Sri Lanka was of the view that the current monetary policy stance was appropriate to deliver the expected results, and accordingly, at its meeting held on 17 September 2012, decided to maintain the policy rates of the Central Bank unchanged at their current levels. As such, the Repurchase rate would remain at 7.75 per cent while the Reverse Repurchase rate would remain at 9.75 per cent,' the Central Bank said.

One year ago

Since June 2011, economists and analysts have been warning of pressures on the balance of payments front. However, the Central Bank failed to take action. The Monetary Policy Review for September 2011, exactly a year ago, reproduced in full, shows how the Central Bank saw the economy then.

'Domestic economic activity continues to expand at a commendable pace, supported by improved external and domestic demand. Sri Lanka s gross domestic product is estimated to have grown by around 8 per cent in the first half of 2011, with both industry and services sectors recording impressive growth. The contribution of the agriculture sector meanwhile has also been positive in the second quarter, following its contraction in the first quarter. The favourable outlook for domestic economic activity augurs well for domestic prices, going forward.

'Although commodity prices have continued to remain elevated in international markets, improved domestic supply conditions and the stability of the Sri Lanka rupee have helped contain domestic inflation. Both headline inflation and core inflation measured in terms of the CCPI (base*2006/2007) moderated in August 2011. Headline inflation declined to 7.0 per cent, year-on-year, from 7.5 per cent a month earlier, while core inflation declined to 7.8 per cent in August 2011 from 8.9 per cent in July. Meanwhile, on a 12-month moving average basis headline inflation increased slightly to 7.1 per cent while core inflation increased to 7.5 per cent in August 2011, from 7.0 per cent and 7.4 per cent, respectively, in July.

'Both exports and imports continued to grow at a rapid pace. Even though the deficit in the trade account has expanded, inflows into the services account as well as continued higher worker remittances have helped contain the deficit in the current account and maintain stability on the external front. Meanwhile, foreign exchange inflows to the capital and financial account are also continuing in view of projects being implemented in diverse sectors of the economy. Further, the Central Bank has also absorbed the proceeds of the sovereign bond issued recently, leading to the gross official reserves recording historically high levels.

'With respect to monetary developments, broad money (M2b) recorded a high year-on-year growth of 20.7 per cent in July 2011, led by the robust expansion of credit obtained by the private sector, which in turn reflects largely the notable expansion of domestic economic activity. It is expected that the moderation of world economic activity along with the slowing down of both advanced economies as well as emerging economies would have some dampening effect on credit and therefore monetary expansion in the period ahead. Nevertheless, if warranted, appropriate monetary policy action would be taken to contain monetary expansion, going forward.

'Having taken into consideration the recent macroeconomic developments including those discussed above, the Monetary Board at its meeting held on 15th September 2011, decided to maintain the Bank s policy interest rates at their current levels. Accordingly, the Bank s Repurchase rate remains at 7.00 per cent while its Reverse Repurchase rate remains at 8.50 per cent,' the Central Bank said in September 2011.


Edited By - Roshan2007 - 19 Sep 2012 04:06:51 GMT
stopterro
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LK Information  19 Sep 2012 04:57:22 GMT  Report for Abuse  
Did Harsha the a/l failed dude provide those numbers?
elephanthouse
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LK Information  19 Sep 2012 06:35:35 GMT  Report for Abuse  
Roshan
Difficult for ordinary folks to remain positive, when you have to live in such an environment.
Just imagine the disaster without the monthly contributions from abroad that so many families desperately depend on! The percentage of those must be quite high.
Roshan2007
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LK Information  19 Sep 2012 08:58:14 GMT  Report for Abuse  
EH,
Even University dons feeling the pinch and came down to roads to demonstrate about it.
Roshan2007
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LK Information  19 Sep 2012 08:59:33 GMT  Report for Abuse  
This may be a good news to farmers but not for ordinary citizens.
Food Taxes
19 Sep, 2012 08:28:02

Sri Lanka pushes up food prices to increase farmer profits
Sept 19, 2012 (LBO) -

Sri Lanka has pushed up food prices of the people to provide greater profits to the farming lobby, while another tax on canned fish has also been raised, a notice published by the finance ministry said.

The finance ministry said a tax on potatoes has been raised by 30 rupees to 50 rupees a kilogram ahead of an upcoming harvest of paddy.
In addition to taxing rice imports, Sri Lanka also taxes alternative carbohydrates consumed by the people such as potatoes and wheat flour to re-engineer the food habits of citizens and force them to consume domestically produced rice under a nationalist-autarkist ideology.

Sri Lanka's state-backed inefficient farmers, who are given over 30 billion rupees of fertilizer subsidies from taxes collected from the people, cannot produce either rice or potatoes as efficiently as foreign farmers, including their counterparts in India or Pakistan.

Both India and Pakistan have farmers who produce goods cheaply enough to feed their fellow citizens at world beating prices as well as export and reduce hunger of the poorest people in other countries at fair market prices.

The finance ministry said a 50 rupee tax is also charged on large onion imports.

'Higher import tax is imposed on chilli, cowpea, green gram, peanut, sugar, kurakkan produced locally in order to certify a higher price for the production of local farmers, particularly, during the harvesting period,' the finance ministry said.

'The country has been reached self sufficiently in production of rice and maize and local farmers have been encouraged to provide above goods in order to meet 50 percent of local consumption requirements.'

'The Ministry of Finance and Planning has decided to increase special commodity levy on imported canned fish effective form the same date.'

While food prices are kept up with nationalist taxes, Sri Lanka's rupee fell from 110 to 132 rupees to the dollar largely because imported oil was subsidized with bank loans which were ultimately re-financed with central bank credit (printed money).

Landowners in Sri Lanka's hill country are making large profits from renting lands to growers in a modern re-incarnation of the effects seen in 19th century Britain due to its 'Corn Laws'.

A controversy arose recently that some fish canning operations that have recently sprung up are using imported fish.

In Sri Lanka the state can tax people without consultation literally while they are sleeping through a so-called midnight gazette.

The mechanism is to provide rents to special interest groups and large monopolist tax arbitraging businesses, through the use of a system of taxation and enforcement inherited from European rule of the island.

Ironically, the 'Magna Carta' of Britain, the origin of modern constitutions through which the arbitrary power of the state and rulers was restrained and liberty of citizens began to develop, was triggered when England's King imposed half dozen taxes (clauses 12 and 14 relating to scutage) without consultation.

Edited By - Roshan2007 - 19 Sep 2012 08:59:50 GMT
Roshan2007
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LK Information  19 Sep 2012 09:04:58 GMT  Report for Abuse  
Summary of price increases.
Gov waited until election is over to gazette these price hikes.

Even people starve without have anything to eat still they would vote for UPFA I believe. -:)

- The finance ministry said a tax on potatoes has been raised by 30 rupees to 50 rupees a kilogram ahead of an upcoming harvest of paddy.

- The finance ministry said a 50 rupee tax is also charged on large onion imports.

- Higher import tax is imposed on chilli, cowpea, green gram, peanut, sugar, kurakkan produced locally in order to certify a higher price for the production of local farmers, particularly, during the harvesting period,' the finance ministry said.

- The Ministry of Finance and Planning has decided to increase special commodity levy on imported canned fish effective form the same date.
Roshan2007
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LK Information  19 Sep 2012 09:08:39 GMT  Report for Abuse  
A controversy arose recently that some fish canning operations that have recently sprung up are using imported fish.


How many people work in fish canning factory ? (which canns imported fish)
How many milllion Sri Lankans eat canned fish ?
Randu097
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LK Information  19 Sep 2012 14:44:49 GMT  Report for Abuse  
Summary of price increases.
Gov waited until election is over to gazette these price hikes.

Even people starve without have anything to eat still they would vote for UPFA I believe. -:)


Price increase... ?
Are you that Studpid man?
SL need to get local food production going at any cost.

Is this bad?

- Higher import tax is imposed on chilli, cowpea, green gram, peanut, sugar, kurakkan produced locally in order to certify a higher price for the production of local farmers, particularly, during the harvesting period,' the finance ministry said.
Damed
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LK Information  19 Sep 2012 21:58:35 GMT  Report for Abuse  
SL need to get local food production going at any cost.


lolz !
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