Sarath Wijesinghe President’s Counsel Sri Lanka, Solicitor in England and Wales, former Chairman consumer Affairs authority and President Ambassador’s forum in UK/SL

Cost of living

Cost of living is the cost incurred to an average family to make ends meet comfortably computed by the governments, trade and consumer organizations in various ways as index of the cost of living, and guides to the Cost of living by the governments, international organizations, international organization socializing on consumerism which is   steady rising world over but sky rocketing in Sri Lanka. Whilst steadily increasing the cost of in other developed parts of the world which is a common feather in the competitive market regime. Due to checks and balances in Sri Lanka it flows with no control leaving the trader to decide the prize of consumer items in the absence of a prize control system, as we had before the introduction nod curfew act no 9 of n2003 (CAA ACT) It is the cost of living standards of a family that is utilized to compute the rate of inflation which is a guide of the computation of cost of living based on price of basic necessities of a family unit or an individual. Identification of basic necessities   has become a difficult task today due to the complexity of the modern lifestyle is – still complicated in urban areas – as it is a relative term considering the needs/demands of the family and young to maintain the basic standards such as (even) the smart phone that has penetration over 110% in Sri Lanka still increasing with sophisticated modern additions is argued to be a necessity for a family. Tuition has become so widespread to the extent the students in remote areas too using smart phones in remote villages and it was shown students climbing mountains and trees for want of WIFI. Basic necessity which is considered to compute ‘’COL’’ cost of living index are basic needs of the average consumer  a relative term in the complex consumer society exposed to the world via the smart phones spread country over with  free exposure to the internet ‘WIFI’ and data available in abundance with a penetration high as mentioned before and  still increasing with effective social media and availability of ‘WiFi’ and data to the citizen quite easily. Basic necessity is a relative term when in the UK heating is a basic necessity to a family considering on international living conditions and standards.

Shortages and high prizes are so common

Prices of rice which is the staple food, coconut as important as rice as a part of the main meal, egg the cheapest contributor as the proteins to the children in when the prize of fish and meat are extremely expensive, state machinery  is helpless before the errant trader and the middle man extracting exorbitant  profits from consumer items freely in the absence of an effective mechanolatry, organizations and a consumer organization network to look after the consumer.

Solution to the current situation that effects all citizens

Everybody is going through difficulties due to the rise of cost living and the governance appear to be helpless, due to a lack of vision and a strategy to the current silent suffering of the citizen. The main legal instrument is the CAA act which is a deathless lion, with many other ager old ineffective legal structure in the inefficient system of governance with 1.5 million inefficient state sector which is grossly overstaffed, eating into a sizable portion of the gross income generated with great efforts, due to bribery, corruption and inefficiency, which directly contributes to the high cost of living. Trade is monitored and managed by jointly the state and private sector, consumerism as an intergyral part of the system.

Village life on consumerism

In the village life in Sri Lanka where villagers are the majority  basic needs could be food, shelter, clothing and source of income by cultivation or other means used to a simple life where elders lived the maximum lifespan at ease and happiness leading a ‘semi commune’ life sharing and assisting the needs in a most friendly way. Clean water is available free and fresh vegetables are in abundance generally given to neighbours when required with great pleasure. Average citizen aspires to lead a comfortable happy life anywhere with less pressure and burden on economic front with the family or alone to make ends meet with the limited income of the average citizen. Pressure  is less in the village as needs are limited for a simple life – yet complex in urban life with ambitions and needs are more. Consumer index computed by the government shows it far too high in Sri Lanka still increasing with the downward trend of the economy with less developments and no strategies to recover despite bribery and corruption is  spread like air in real life. Village is gradually transforming to a semi urban area as a result of modern technology and modern trends on consumerism.

Cost of Living

This is ever increasing worldwide. Bread is a stable food in UK where the price has risen from 10 pence to one pound today despite the ‘Bread Ordinance’ still in operation in UK , pint of milk in 1990 was 25 p rose to  42 p in 2020, which is inevitable and common to Sri Lanka too and world over while  salaries are increased proportionately   and safeguards for the poor given such as social security  strengthening   with the rise of cost of living in UK but not necessarily in countries with less resources and less developed. In  Sri Lanka rice  is the  major stable food which is monopolized by few dealers despite the existence of the Consumer Affairs Authority and Trade Ministry  –  the regulators of consumer items and services the price is fast increasing steadily with unbearding an colossal sums despite the maximum price determined  by section of 19 of the consumer affairs authority  act where the Minister by his powers have  gazetted the maximum price of named consumer items- the trader appear not to have any notice of. Cost of living is strongly felt in poor economies despite state assistance for needy which is generally insufficient for existence due to economic deprivation of the people and the governance. Cost of index (COLA) is computed by the respective countries worldwide as a measure of cost of living of a family unit , in order to  find solutions to help needy citizens as cost of living is a hot topic anywhere which is difficult to fight back. Fighting cost of living can not be effectively controlled by the state alone as it is a complicated process to be jointly operated by the consumer (citizen) state ( regulator) trader ( to be reasonable for the good of everybody) and organized consumer movement that includes media that is effectively functioning in the United Kingdom USA , EU and the West where consumer activism ( consumerism) is effective and operation at the highest ebb. In UK ‘’DTI’’ department of trade and industry and the organization WHICH playing a main role with the media and community to ease the consumer of the pressure of high prizing of consumer items and services to be provided at a reasonable price. Consumer they say is  powerful like a king when organized but unfortunately  it is not so in Sri Lanka an less developed nation whilst there exists a  organized and powerful network of consumer movements in the west. Consumer movement with the citizen with reasonable  trader monitored by state and self-regulated competition law and practice is the ideal combination for a successful consumerism regime to satisfy the consumer and promote trade and relations with the necessary parties namely the trader, consumer, many factures and the regulator. Cost of living is felt by the citizen and has become the hot topic in media social and well as traditional and international and considers the main enemy of the nation as it bites every citizen who are consumers at every stage of life. Despite the bread ordinance and the guaranteed prizes and weight  of bread supermarkets sell bread with exorbitant prizes , when the average citizen is used to supermarket culture and to live on loans by credit cards with interest in a debt ridden society following the west.

Law and Practice

The main legislation in Sri Lanka on consumerism is the Consumer Affairs Authority act no 9 of 2003 which is outdated ineffective and requires drastic changes to meet the demands of the consumer and consumerism today including fighting cost of living as a priority when the prices of consumer items and services are increasing with no control or monitoring due to o reasons of inefficiency, lack of vision knowledge and leadership, and mainly the deficiencies if outdated legislation and practices on consumerism.. The other legislation and the institutions connected are the Ministry of Trade, Ministry of Health, Standard   of Bureau, Local bodies and many more organizations  and government institutions headed by the CAA as the main regulator in the process which appear to be ineffective without a proper vision leadership and effective legislative mechanism to cater the demands and needs of the consumer aggrieved by errant traders, inductivists and  ineffective regulatory procedure expected to be performed by the CAA and the connected statutory bodies and activist organizations. What we consume daily as cooked and uncooked food, vegetables, fruits, fast food and aerated waters including bottled water are mostly of substandard contaminated and it is no exaggeration  to say many are semi poisonous that goes undetected freely consumed by the citizen – a great pity – at the cost of the health of the nation especially the younger generation awaiting to take nation forward.  There is many more legislation ineffective and even unknown to the society gradually transforming to a sick nation. Whilst CAA and connected legislation is base don consumer law the civil law applies in civil courts and civil suits on commerce and litigation with special courts of commercial matters but not on competition law and arbitration too plays a main role in commerce and trade connected to consumerism. Let us discuss the remedy at the latter part of this article. Law and practice are apart as in practice consumer is at the receiving end aggrieved by the errant traders and ineffective regulators due to non implantation  of the legislation and regulations properly and effectively.

Complicated Urban Life

Urban life the needs are more and consumer goods have to be purchased at the price with 6the limited income and needs too are more due to additional unavoidable commitments. Citizen is expected to maintain standards according to the position of the society and the expenditure accordingly for the consumer items purchased. In consumerism there are important players namely the trader, industrialist, consumer and the regulator taking their parts and responsibilities in the life of the citizen in relating and determination of the cost of living  that is the living cost of a unit or an individual consuming items and services at a price decided and regulated by the trader and manufacturer subject to the supervision of the state under the rules and regulations formulate to regulate prices of consume items in the interest of the consumer generally in the receiving end with the strength and the monopoly of the trader. This is the scenario on international definitions and in Sri Lanka the main regulator acting on behalf of the state is the Consumer Affairs Authority formulated by act no 9 of 2003 which has not amended  despite many needs to serve  to cater the needs of the current digital age with modern platforms and when  consumerism  changing at a  rapid  rate and a phase. In the free economy the trader has independence to sell at a price indicated in the consumer item expecting to sell items of reasonable quality at a reasonable price. Citizen is steadily chosen the urban life for reasons left to themselves and  the family unit is pressed with needs on educating the members of the family, Cost of living is mostly felt be the urban population depending on the consumer items available at the price they nominate in the absence of a price control regime when the main three acts in operation under English law including the price control  act was abolished at the introduction of CAA 5on year 2003 transferring the legal basis of consumerism completed transformed to Regula ration of in place of price control and related legislation introduced by British which is still 3carrying on in UK successfully with the Department of Trade and industry and powerful consumer activism backed by the magazine WHICH a powerful consumer weapon. Due to modern technology the village too trends to commercialise with an impact of uniformity of applicability cost of living with a uniform trend.

Prices of Consumer Items

Prices of consumer items are steadily rising as happening worldwide in a rapid rate in Sri Lanka due to the economic downturn, economic deprivation, mismanagement, corruption bribery and so many factors  while the citizen accuse the state machinery and the trader for the souring of prices to  the highest from rice, bead, coconut ,vegetables to all consumer items in the open market in the open economic conditions with inactive regularly powers and absence of price control mechanism. Price of the consumer items is decided and controlled by the trader and manufactory jointly and state policy, agriculture sector, economy effectiveness of the regulator are factors decided in the computation prices, pricing and the cost of living as a whole expected to be streamlined by competition yet not properly applied and implemented in Sri Lanka though CAA is provided for a mechanism and procedure. Starvation and malnutrition is supposed to be in the increase, with shortage of food items and medicines taking place the bribery, corruption, mismanagement, nepotism continues despite the promised changes for a better Sri Lanka – a sorry state indeed, to be considered seriously.

Fighting cost of living – the main enemy of the Nation and the way forward

It should be a collective effort by the consumer, trader, industrialist, and the regulator – the state to launch the fight  against the powerful enemy of the in the interest of all lest  all citizens-consumers are the losers to be  perished  as a failed nation where all suffers collectively due to the heavy and unborable cost of living. The fight is to be based on education and understanding of respective parts to be played by the parties concerned. Consumer as the aggrieve part must be thoroughly educated on their rights, duties, and the task as the aggrieved party who will be bestowed with general sympathy and powerful as the majority namely the ‘KING’ in the consumer world. This power sometime unknown to the consumer to utilize power given to them by law yet and community to be organized by consumer activism in the western countries assisted by the states and the civil legal systems and academic and professional writings. Smart and educated consumer is a necessity to beat the cost of living any situation when he carefully chooses the consumer articles at the affordable price of the required standard. Today the main issues on cost  of living has been eggs, coconut and rice which is the stable food of the nation. Rice issue is mismanaged and is in the hands of the leading monopolies with 97% the rice in the absence of the paddy board and inefficiency of the trade and agriculture Ministries unfortunately not making use of the available legal machinery and the network of the consumer organizations and  ever ready to cooperate with the governance on any process to being relief to the citizen. The governance is a miserable failure and CAA too is a failed institution   in the hands of the monopolies which are illegal under law an d practice at the cost of the citizen – consumer at the receiving end. This applies to all other consumer items and services with no proper control or supervision by the statutory and public institutions leaving the public open for exploitation, when there is a solution under the limited circumstance with limited legal structure and the network of systems and personnel expected to work round the clock countrywide.

Amend, Change, modify and replace if necessary, the existing outdated legislation and the practice

It is time to amend or introduce let legislation to meet the new digitized world when the citizen is ready to use modern and international platforms on e and digital commerce at the doorsteps of Artificial Intelligence era Sri Lanka has already approached. The regulator that is the CAA has to fight the fight against the corrupt and illegal regime of errant trader and illegal industrialists armed with consumer education in all levels and proposed consumer organizations as the cradle of the fighting mechanism. It is not rocket science.It needs strategy, planning educating and commitments with proper leadership from the top with proper knowledge an understanding. A joint effort with consumer, regulator, trader and consumer organizations will have to unite with proper strategy and understanding to work hard in their interests if the bomb ticking explode it is may be a difficult task to diffuse the situation easily as the day is not too late citizen will walk into the street to seek the redress when the trader is exploiting the citizen with no notice of the regulator and governance inactive and ineffective with no vision, legal framework or a plan of action with a proper leadership. It is time the consumer organizes themselves as in UK wo Brough the errant trades to kneel with the assistance of two powerful media when Sri Lanka is unfortunate to have a strong consumer movement to help the citizen in danger and suffering. The need is grave, great  at and imminent to introduce a new act on consumerism with provisions for Consumer Ombudsman, Consumer Courts, Provision for a strong network of consumer organizations, as an immediate need in addition to strengthening  the state machinery with a vision and a visionary leadership.    ( sarathdw28@gmail.com – Case for a Consumer Ombudsman  26.10.24 Lanka Web /  Protecting Consumer FT on 14.10.22/ Small Claim Courts to Protect Consumer  3.10.22 Lanka Web/ Egg and Poultry Crisis Telegraph  26.10.23)