Former United National Party Deputy Leader and Parliamentarian Ravi Karunanayake has warned that Sri Lankan households continue to face severe financial pressure despite the recent slowdown in inflation.
Speaking to the media, Karunanayake said that although inflation has eased to 6.8%, the prices of goods and services have not declined and remain at historically high levels.
He pointed out that employees’ real wages have not increased sufficiently to compensate for the cumulative inflation of more than 100% experienced in recent years.
Karunanayake also claimed that household disposable income has fallen significantly due to the 18% Value Added Tax (VAT) imposed on essential goods and strict personal income tax thresholds.
He said even middle-class families that were financially stable in 2021 are now struggling to meet their basic needs.
According to the MP, many families have been forced to reduce spending on essential areas such as nutrition, healthcare and private education as they struggle to cope with the rising cost of living.
