Conflict and Cost of Living

Two major issues that are uppermost in the minds of the public are the informal resumption of hostilities between the LTTE and government security forces and the escalation of the cost of living. The recent acts of violence are well known to need recounting. The Central Bank has reported that the Colombo Consumer Price Index recorded increases of 6.4%, 9.2% and 13.2% in the months of March, April and May 2006 respectively compared to the price level that prevailed in the same months in the previous year. In other words inflation has accelerated in the three month period. This index probably under-states actual inflation especially for the urban middle class.

The conflict as well as the escalating cost of living is symbolic of two broader areas of national importance.

Read More>>