Many Sri Lankans today have one question on their minds and it has nothing to do with the ongoing civil conflict or the poitical issues, the question is not even the pressing social issues of finding better jobs, good schools for children, or even planning for the future, instead it is about  how does one survive.

     This situation is more apparent in Trincomalee than anywhere else. A city where people have faced harsh living conditions for years, than those living in other parts of the country, their economic and social hardships for years being further compounded by the real threat of sudden and brutal injury or death caused by the incessant war raging in their very own backyards on the one hand, and natural disasters of catastrophic proportions on the other. 

  Just when things could not seem to get any worse for them, spiraling inflation and the cost of living have now focused all of their energies into nothing but basic survival – a survival so basic, that even three square meals a day are slowly slipping out of their reach.   

   Three-wheeler drivers are among the hapless daily wage earners who are buckling under the cost of living.  ‘When the price of fuel increases – we have to increase our fares.  When this happens more people opt to walk short or even longer distances, saving the Rs. 50 or Rs. 80 they would normally pay us,” lamented Thushara Nixon, a three-wheel driver from China Bay.

     He pointed out that following the 2002 ceasefire, with the attending increase in tourist arrivals they were able to earn as much as Rs. 4,000 a day, enabling many of them to buy a second three-wheeler, construct homes and in general raise their standard of living.  Even after that, the initial boom following the ceasefire they were able to earn between Rs. 1,000 and Rs. 1,500 day, says Nishantha, but today, they are hard put to even earn Rs. 100 a day. 

They find it difficult to pay the lease on the vehicle, often pawning jewellery which they then cannot afford to redeem.  ‘Customers often haggle with us over the cost of the fare and when we cannot lower our fares any more they decide to walk.  The roads are in a dilapidated state and the tyres get wasted in no time, but with the cost of tyres having risen so drastically, we cannot afford to replace them,” he continued.

  Many others like Nishantha began building their homes when they imagined that only good times were ahead.  These projects, began when a bag of cement cost Rs. 350 and masons charged Rs. 500. However these plans have now been abandoned since a bag of cement costs Rs. 650 and masons charge Rs. 1,200 as daily wages.    

    A common complaint  that was echoed was that while earlier people could stretch out a their salaries to last the whole month, but today that is no longer possible, as in the case of R. Premajayantha, an employee of the IOC Company in Trincomalee.   ‘Prices of essential items are increasing almost daily.  A packet of milk which was just Rs. 165 last month has gone up to Rs. 200 this month.  I need 10 packets of milk a month for my house.  Although I work in Trincomalee my home is in Kandy.  With the ever increasing bus fares my monthly bus fare alone is Rs. 3000. 

    ‘Earlier our salaries were increased with every point increase in the cost of living index.  Now it is revised only once every four months – whereas it should be revised every week considering the present situation. With all these price increases my salary only lasts half the month now.  Yet, how can I not give my children milk and how can I not go home?” he  laments.

   Premajayantha and others like him complain that since there is no corresponding wage increase to keep pace with the racing rate of inflation and skyrocketing cost of essential items, they have to resort to borrowing money. 

Due to inflation, interest rates on borrowings are also extremely high, leading to a vicious cycle, thrusting middle income earning families ever deeper into the clutches of debt.  But as they point out, they continue to borrow money because they can’t let their families starve. 

     The common consensus is that traders being the middlemen in a market economy are most likely to profit from such a scenario.  The traders however are quick to dispel any such illusions.  

      Nishantha Hewamanna, a petty trader at the fourth mile post in Trincomalee pointed out that once he pays for transport costs and his workers’ wages, he is left with hardly any profit.  “It’s true that price increases don’t stop people from eating – but it definitely reduces the quantity of food they purchase,” he told GroundView. 

   “People who bought half a kilo of vegetables earlier now buy only a quarter kilo.  It’s true that vegetable prices are subject to fluctuations – especially with good harvests or increased imports of vegetables like big onions and so on – but the price increases far out run the decreases,” he says. 

    Many vegetable traders buy their stocks from mass wholesale locations such as Dambulla.  When fuel costs increase, transporters charge by the bag when it comes to transporting the vegetables to other parts of the country. 

With the current security situation, bags are unloaded several times on the way to their destination so that lorries could be checked, and labourers have to be paid for this task every time.  Traders have no choice but to pass on these accumulated costs to consumers by charging more for the vegetables. 

    “With the increased costs, consumers too take extra care over their purchases and choose every item of vegetable very carefully.  This results in waste as they do not buy vegetables which are even slightly bruised, and a portion of vegetables always perish during transportation, especially due to repeated loading and unloading due to security checks, and traders have to bear that cost as well, they complain. Unlike other goods you can’t return unsold vegetables.  Our customers have now reduced purchasing the more expensive items such as carrots, beans, leeks, and beetroot.  Whereas earlier people ate at least three vegetables for a meal, they can now afford to eat only one.”  

    “With all these factors, our incomes have hit rock bottom.  Our salaries, transport costs, losses from waste, electricity bills, shop rent have all increased, reducing our profits.  But in spite of all these difficulties, what can we do other than to continue buying vegetables, even after raising loans,” says Nishantha. 

     Trincomalee being a coastal village, fishing is the main source of livelihood for the people, both directly and indirectly.  With the rising cost of living and a number of other contributing factors, however, consuming fish has become a luxury many people choose to go without.   

     Due to the current security considerations, fishing is restricted in Trincomalee, resulting in an increase in prices.  Whereas earlier a kilo of fish cost Rs. 180 now just half a kilo was Rs. 150 says Koneshamani Suresh Kumar, a fish vendor from Janasarigama in Trincomalee.     ‘People now prefer to buy a kilo of chicken instead of half a kilo of fish.  Even if they do buy fish the most they will buy is 500 gms of the cheapest variety.  I find it extremely difficult to dispose of my stocks even by noon, let alone make a decent profit,” she told GroundView. 

    Among the other affected industries are the jewellery and pawn brokering industries, another indicator of the prevailing hard times.

Since fishing is a major source of income in Trincomalee, when fishermen make money during the peak season they tend to invest it in gold jewellery. 

Y.M. Asar of Usuf Jewellery at Beach Road however points out that present sales indicate how low incomes have fallen.  ‘My income has fallen by four fold.  I had to discontinue two of my employees as a result – what can I do with employees without business,” he said. 

    He pointed out that many jewellers and pawn brokers made good profits through the pawning business.  But now even though people were pawning their jewellery instead of buying any, they preferred to pawn it to the banks, cutting off even that source of income to local traders. 

   ‘Public servants purchase jewellery very rarely now – most resort to ‘cheetus’ to purchase their needs in jewellery.  Some time back our shops were full of customers – now they are empty.  This shows that even though gold prices have not risen much, people don’t have any money to meet their daily needs, let alone luxuries.  First food and clothes – only then jewelry they say,” Mr. Asar said. 

    Nobody seems to be exempt from the hard times that have befallen the country.  Everywhere you turns, one sees a story of hardship, sorrow and utter despair.  While it is undeniable that economies invariably go through ups and downs, one cannot shy away from the fact that Sri Lanka’s economy and its people along with it are limping towards impending doom, towards total economic collapse, similar to the fates of failed nations.

 Indeed, what hope can there be when a father cannot shut out the cries of his hungry child?

 Y.S.M.Ranatunga, a popular Ayurvedic physician of the area, came to Trincomalee in 1951.  Here he reminisces about life in the good old days and compares it to the hardships of today. 

 “When I came to live in Trincomalee at a very young age, life here was heavenly.  Trincomalee was such a beautiful city – unspoiled beaches, lovely climate, friendly people – life was good.  There was not even a hint of any conflict.”      

   “When I became a physician in 1969, I opted to go in to private practice instead of joining the government service as we could earn much more outside – as much as Rs. 40 to Rs. 50 a day, a very big sum in those days, especially when you consider the cost of living those days.  It cost just Rs. 3.75 to travel from Kandy to Trincomalee.  A cake of soap was 10 cents, sugar was 20 cents, a measure of rice was 40 cents and a kilo of fish was Rs 3.  I remember a big hartal when the price of rice was increased in the early 1950’s, but this was an extremely rare occurrence.” 

  “ Even though there was a scarcity of goods during Mrs. Bandaranaike’s time, the prices of goods were high, but with so many people owning large extents of land they countered this rise in costs by growing certain fruits and vegetables in their gardens.  People also did not have to cope with so many extra expenses like they do today.  If at all, they would take have an occasional drink and socialize or visit the cinema.”

   “In 1977, President Jayawardene’s open economy brought with it a flood of goods into the country. Industries abounded across the country, employment opportunities were plentiful and people had money in their pockets.”

 “By the time the 1990’s rolled around, however, the situation began to decline dramatically.  Bus fares, electricity and water bills have gone up, and the war was beginning to take its toll on the economy.  By 2000 the prices of goods shot up at an unbelievable rate.  Now ordinary people find their salaries inadequate, especially as wages are static but the prices of essential items are increased almost daily.   With no control over imports, even something as simple as a bucket is imported, and several local industries have collapsed, as a result.” 

  The sugar factory at Kantalai has closed down, the rice mills have folded up, potatoes are imported from India, milk powder is imported from New Zealand, fish is imported even though we are an island nation. 

It is no longer shortfall items which are imported into the country but even products which we can easily be produce in our own country are being imported.