• Food supply networks affected; farmers and public suffer
• Double whammy for public transport with price hike and shortage 
• Retailers, farmers and bus owners seek holistic solutions from Govt. 

By Maneesha Dullewe The economic crisis has impacted a wide range of sectors – perhaps none more so than agriculture, transport, and trade, with the country under virtual lockdown following the restriction of fuel supply for private use. With the reduction of fuel distribution and allocations being made only for essential services such as port, health services, and food transport until 10 July, it appears that the day-to-day life of citizens has collapsed. While the Government has taken drastic measures to adjust to the crisis in recent weeks – including implementing a four-day work week and asking people to work from home – the public continues to struggle with food and fuel shortages, and the soaring prices show no signs of abating. The Government’s latest fuel price increase comes in the midst of such a shortage, despite fuel being unavailable for private travel. Latest revisions As per the latest price revision of the Ceylon Petroleum Corporation (CPC) announced on 26 June, a litre of 92 octane petrol was increased by Rs. 50 to Rs. 470, 95 octane petrol by Rs. 100 to Rs. 550, while a litre of auto diesel was increased by Rs. 60 to Rs. 460, and super diesel by Rs. 75 to Rs. 520. This revision was followed by the Lanka IOC announcing that it would also increase fuel prices to match the CPC rates. This latest round of revisions inevitably triggered subsequent increases in prices of other goods and services, with the National Transport Commission announcing a bus fare increase by 22%, adding further strain to an already-burdened general public. Speaking to The Sunday Morning, Lanka Private Bus Owners’ Association (LPBOA) President Gemunu Wijeratne said: “Even more than the fuel price hike, it is the fuel shortage that is impacting most heavily at the moment. Fares will inevitably increase with the hike in fuel prices and this is a serious issue.” “These days, our days are spent in queues,” Wijeratne lamented, strongly condemning the Government for failing to restructure the overstaffed State institutions which were running at a loss and guzzling up the country’s revenue. “We are all now reaping the ultimate consequences of this political terrorism.” Farmers’ woes Meanwhile, speaking on the impact of fuel price hikes on the farming community on the ground, All Island Farmers’ Federation National Organiser Namal Karunaratne shared his eyewitness accounts and personal experiences from spending time amongst the community in the past few days.  “Hambantota and Embilipitiya are the country’s largest banana-growing areas. These days, a kilo of sugar plantains is Rs. 30 and a kilo of ambul is Rs. 40. However, farmers are unable to sustain themselves even at these prices, since there are no vehicles to transport the produce. The largest banana market in Sri Lanka is now deserted. One reason is that the farmers’ harvests are low, contributed to in part by the fertiliser crisis, while they also have no way of selling this low harvest. “Recently I was among the Irudeniyaya Muslim farming community – a zone that supplies the most vegetables to the Dambulla Economic Centre. These farmers were returning home empty-handed after failing to sell their radish harvests at the Dambulla market. While radish rises in price in Colombo, farmers are struggling to sell their yields. Moreover, their production is low while production costs are high, all the while harvests are poor, and they are also unable to sell these harvests. Even if they manage to sell, they don’t receive a fair price. On the other hand, the consumer is facing shortages and rising costs.”  Karunaratne noted that the fuel issue was a primary cause behind this disruption in farming, as traders no longer came since they were unable to transport food. “With the islandwide food distribution network thus completely destabilised, both the farmer and the consumer are suffering a great injustice. If things continue in this manner, a famine is likely imminent,” Karunaratne warned. “Maize farmers in Siyambalanduwa should have begun their harvests by now, but they haven’t even thought about commencing yet. They simply cannot proceed. They have to plough the field using scythes; this is unfathomable. Despite there being no preparation on the part of the farmers under these circumstances, they still need to cultivate since they can’t make a living otherwise. The farming community of this country has been reduced to an extremely pathetic condition.” He warned that the entire country would have to face serious food concerns if the Government failed to address and provide solutions to the fuel issues plaguing farmers.  Karunaratne described the fate that had befallen the farmers as a vicious cycle, where the lack of fuel meant that farmers were presently at a loss of what to do and were thus being forced to simply stay at home. Fuel is expensive, farmers lack the funds to purchase fuel, and even if funds are sourced, there is no fuel to be purchased.  Retail challenges Meanwhile, Sri Lanka Retailers’ Association (SLRA) Founder Chairman and President Hussain Sadique acknowledged that while the situation was bad, these fuel increases were only one part of the problem, adding that the Government needed a more holistic approach to the issue in order to address the impacts on the retail ecosystem.  He pointed out that the outlook for the retail industry was far from positive: “If this continues, there will be a loss of jobs, rent won’t be paid, and supermarkets might scale down their branches without means to distribute goods.” “It’s not just about the retail end, as many more people are involved at the back end,” he said, adding: “There is the manufacturing industry, there are also supply chains and transport systems. Retail is huge.” He noted that transport was essential to ensure that the retail industry could function unimpeded and therefore it was an issue that required a solution immediately. Nutrition concerns Echoing all these woes on the supply side, consumer rights activist Asela Sampath further elaborated that there was a brewing issue of nutrition deficiency under the present circumstances, as consumers had been reduced to a tragic condition without access to food. “As of now, the vegetables at economic centres including Dambulla are not being supplied to consumers due to the fuel and transport issue. Even ordinary families, let alone the poorest, are unable to purchase even an egg due to the prices. At least 60% of consumer households have stopped consuming meat and fish for months now due to price increases,” he said. Sampath also noted that most essential food commodities were simply not available – another issue compounded by the fuel prices. “Despite the control price imposed on rice, the increase in transport costs caused by the fuel price hikes have now made it impossible to purchase rice at the control price of Rs. 220. Consequently, the small village retail stores have stopped selling rice since the wholesale and retail prices have not been announced. This has compelled consumers to resort to consuming green vegetables grown at home. “Sri Lankan consumers are going through the most arduous period in history, with the less well-off, such as those employed in the informal sector, being unable to fulfil their daily food needs since most city restaurants that serve this demographic have shut down due to the fuel issue,” Sampath concluded, asserting that this would lead to a serious social breakdown as the country needed a healthy workforce to ensure productivity. Fuel price hike: Before and after

	Before 26 June	After 26 June
Bus fare (22% increase)	Rs. 32 minimum fare	Rs. 40 minimum fare
Three-wheeler fare	Rs. 80 for second kilometre	Rs. 90 for second kilometre
Rice packets, kottu		10% increase

  Manufacturing and exports in peril As Sri Lanka faces rapidly-dwindling fuel stocks, its foreign exchange revenue generating industries are in significant jeopardy.  Amidst reports that major manufacturing sectors are running out of fuel, Export Development Board (EDB) Chairman Suresh D. de Mel told The Sunday Morning that the issue at present was the lack of fuel rather than the price of fuel. Expressing grave concerns regarding the situation, de Mel said: “Today an exporter can’t go and get a can of diesel for their generators, so they are struggling – they can’t get enough diesel to run their generators or their vehicles, despite waiting in queues. Transport is a problem as well, so a lot of exporters have to provide their own transportation.” De Mel envisioned a bleak outlook for the sector’s future due to the ongoing fuel shortage. “I have a fear that the factories are going to shut down, which will cost a lot. The sector brings in around $ 40 million per day, which is a big impact. The garment factories alone bring in about $ 20 million per day and almost half of our merchandise exports are garments, so the impact of losing this revenue will be of great consequence,” he said, noting that this would also impact the many workers who depend on the sector for their livelihood. Addressing the impact of the fuel crisis on industries, Sri Lanka Shippers’ Council Chairman Russell Juriansz, who represented the Council within the Ceylon Chamber of Commerce, said: “There is a major impact, as container transporters don’t have fuel and it’s a challenge to get the produced exports to the port. Certain Small and Medium Enterprises (SMEs) are finding it difficult to secure diesel for their generators, as the companies ask them to pay in dollars. “The big companies that have dollars and storage facilities are handling the situation much better than these smaller companies. In the long run, if this situation persists, SMEs will face continued challenges, including closures or relocation to other destinations. We don’t see a silver lining at the end of the tunnel.”