Sri Lanka power users see through ‘subsidy’ trick

Sri Lanka's state minister of defence Ruwan Wijewardene (L) takes part in a press conference in Colombo on April 24, 2019. - A Sri Lankan security dragnet hunting those responsible for horrifying bombings that claimed more than 350 lives has scooped up a further 18 suspects, police said April 24, as pressure mounted on politicians to explain why no one acted on intelligence warnings. (Photo by ISHARA S. KODIKARA / AFP) (Photo credit should read ISHARA S. KODIKARA/AFP/Getty Images)

Apr 15, 2013 (LBO) – Despite decades of propaganda by elected rulers about ‘the government bearing the burden’ some citizens are seeing through the subsidy deception, comments by electricity consumers at a public hearing on a tariff hike showed. He said two state banks were also in trouble because of heavy lending to fund subsidies.

Now through a tariff hike, a part of the losses of state-run Ceylon Electricity Board were intended to be passed on to the people and the rest to be ‘borne by the government’.

“The people will have to bear the burden of the losses passed on to them (Maha janathawerter dener kotasa, maha janathawa bara ganna owner),” Induruwage said.

“The government is again the people. So that portion will also fall on the people again(Rajaya kiyannay apahu maha janathawa. E-kotasath arpahu wetennay maha janathawerter.)


The perpetuation of the 20th century welfare state invented in the West, primarily depended on continuous inflation and currency depreciation coming from unsound money.

After the US dollar was pushed off the gold standard gradually after the World War II, it became possible for the welfare state to become entrenched and generate rampant inflation and cur