The Hon. (Prof.) Anil Jayantha - Minister of Labour and Deputy Minister of Economic Development

¶ 01 Mr. Presiding Member, the Adjournment Motion alleges shortages of goods, high prices, market distortions, and that people cannot live, and that the National People’s Power Government is not fulfilling promises. Let us examine whether this is true.

¶ 02 The Opposition tries to analyze an entire economy and society using one or two data points, or short-term market phenomena. We must not forget that the NPP Government assumed office in an exceptional context: to transform an economy broken for years, not a normal one. Understanding the situation, we are taking prudent measures.

¶ 03 There is also a tendency to misquote us. A Member claimed we promised an immediate 60 percent cut in electricity bills—we never said that. Electricity tariffs are indeed too high; if not reduced in a calibrated manner, production will be hurt. We have a plan requiring a few months and steps. Spreading such falsehoods is to gain attention while we do the real work.

¶ 04 Regarding prices: when a few items rise quickly, it creates stress; that is true. But to assess whether people can live on their wages, we look—imperfectly but acceptably—at the Consumer Price Index measuring inflation, which is the sustained increase in prices. Under your administration, food inflation rose by about 90 percent and headline inflation by about 70 percent—an inflationary situation created and elevated by you. We, upon taking office, acted to break that momentum and are now managing and bringing it under control.

¶ 05 I will place some data: in 2021, due to the rapid inflation, the base year for the index had to be shifted from 2013 to 2021 to reflect reality; otherwise the inflation index would be overstated relative to current consumption patterns. We will continue to monitor and act systematically to stabilize prices and support production, while implementing our broader structural reforms to rebuild the economy.