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"It is not to resolve Tamil people's problems…"

President Kumaratunge's statement on her return from London also makes one think that she too has realized the seriousness of the situation. She has said that the peace talks are about to resume soon and that she will start having discussions regarding this with the opposition parties including the UNP within two weeks.

However, the warning that the country will face "serious troubles" if the peace talks does not commence soon was not issued because of the fear that the war will restart. The warning is the result of the economic difficulties facing the government. In other words the warning indicates a serious economic problem facing the country.

Sri Lanka's economic woes are caused by the increase in fuel prizes and the increase in commodity prizes. In addition, the economy is facing challenges as a result of the draught affecting large parts of the country. If these conditions continue for much longer the country will indeed face serious troubles as predicted by Prime Minister Mahinda Rajapakse.

The war conducted by the previous PA government caused the country's economy to hit a rock bottom. The economic growth rate was set to slide into the negative scale. This is also the reason for the fall of the previous PA government.

The UNP government that came to power next tried to put the economy back in order. Although it managed to ease the situation somewhat, it could not put the economy into a growth phase. It is for this reason that the UNP government tried to get the aid money at the Tokyo conference. When the President dissolved the parliament this opportunity was lost for the UNP.

Even nature is against Chandrika's government. The severe draught in the country has caused drop in production. In addition there are problems in the electricity supply. These are further weakening the economy that is already in poor health.

In this situation, the confused approach of the current UPFA Government towards the peace talks has again started to affect the economy. It has become a big challenge to put the economy back in good footing.

Not only that, the global increase in the prize of petroleum has affected Sri Lanka badly. Because the government was unable to stop the fuel prize increase, the resulting general increase in commodity prizes has lead to skyrocketing of the cost of living.

The UPFA government, which came into power on the promises that it will control the prices and give wage increases to workers, is unable to fulfill these promises. This has disappointed the voters and has created a situation where they could start protests against the government.

It is because Prime Minister Mahinda Rajapakse has understood this that he is warning of the serious troubles the country will face if the peace talks are not resumed soon. In other words the government will face serious challenges if the people are to start protesting on the streets against the cost of living and demanding wage increases.

It is in this context that peace talks are being talked about in the government circles. It is only when the country gets into deep trouble because of war or other problems that the government wants to have peace talks. Governments have always wanted to hold peace talks to get out their own tight situations and have not sought peace talks to resolve Tamil people's problems.

08 September 2004

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