A politically momentous month in Lanka

The month of September has been momentous in our country’s history. Prime Minister S.W.R.D. Bandaranaike was shot on September 25, 1959, and died from his wounds the following day,  September 26. On  September 22, 2024, President AKD Dissanayaka was elected Executive President of Lanka.

The similarities ended there. While Bandaranaike brought to the fore divisive elements in our country, President Dissanayaka was voted into power on a mandate to eliminate  widely reported large-scale corruption, nepotism and abuse of power that contributed to the country’s economic collapse in 2022.

 Among the more soaring goals that Dissanayaka and his National People’s Power (NPP) set for themselves, was to fight impunity and establish a ‘new political culture’. He promised a regime that would end the divisive ethno-religious politics that led to 30 years of war and foster peaceful co-existence among all Sri Lankans – Tamils, Muslims and  Sinhalese Buddhist people.

President Dissanayaka and his party also promised to  bring down the cost of living and renegotiate the International Monetary Fund (IMF) deal signed by previous President Ranil Wickremesinghe which led to widespread hunger and malnutrition in the country. He also promised to increase the wages.

UNICEF reports that 2.3 million children in Sri Lanka don’t have enough to eat. ‘Families wake up every day to increased food prices, struggling to provide for their children in a country where vital services, like healthcare and education, are being pushed to their limits’. The report adds, Sri Lanka’s children are paying a heavy price in this crisis.

In keeping with its electoral promises, the new government increased the national minimum wage to Rs. 27,000/- per month (or Rs. 1,080/- per day) effective from April 1, 2025. Yet it costs a family of four (father, mother and two children) around Rs. 100,000/- a month to have two nutritious meals per day. 

Government’s salary increase leaves no income to cover the cost of education, travel, health and clothes for a family.

Again, tea and rubber estate workers  face a number of major problems, including low wages, dilapidated housing, and poor access to water and sanitation. While a recent wage increase was implemented in September 2024, it remains insufficient for a decent living, especially with strict productivity targets for additional earnings. 

On  April 23 2025 the World Bank reported that though our economy was recovering,  many Sri Lankans are still struggling. Household incomes, employment, and overall welfare are still well below pre-crisis levels. It states that  poverty levels remain alarmingly high at 24.5 percent in 2024. The labour market continues to struggle, leading to increased emigration as people look for opportunities abroad.

In turn,  this means more families are getting into deeper debt to find the wherewithal to travel overseas, where employment opportunities are available.

On the plus side however, the government has gone after corrupt politicians from the level of the all-powerful ex-Executive President to lowly peons in deadly earnest.Recent media reports exposed the son of a past minister of health,who worked as his private secretary, accumulated wealth to the tune of Rs. 270,000,000/- in a period of 21 months! The report adds his wife, in the same period,  accumulated a further sum of Rs. 25,000,000/-. 

The prosecution of these alleged rogues and thieves are taking the minds of the masses away from their day-to-day struggles and problems. But many are still willing to give the government further time to sort out the problem of growing poverty in the country. Many are having their eye on the upcoming budget -scheduled normally in November each year. They look forward to see if and how the government will tackle their ever burgeoning struggle to keep the wolf from the door.

Distractions can only delay a crisis 

‘Economynext’ on  September 10 2025, reported our country had repaid 952 million US dollars to foreign creditors in the second quarter of 2025 and outstanding sovereign bonds as a result fell to 10,255 million dollars by end June 2025. In other words we are still not out of the woods.

The NPP government needs to come up with new ideas for earning more foreign exchange to repay our foreign debt. In addition, the  government must also find a solution to the people’s pressing needs. Else we may soon find ourselves facing another ‘Aragalaya-like’ situation.