July 10, 2008 (LBO) – Sri Lanka’s post minister, one of a coterie of 108 ministers in the island, said he had personally got the postal service moving during a one-day token strike, while the head of an over-staffed state enterprise wished for strikes every day. There has been no general strike in the island since.
Like now, the 1980 inflation spike also came on the back of a global monetary policy bubble that sent oil to a new record and forced the Federal Reserve to adopt strict quantity targeting to bring prices under control.
Countries with fiscally dominated monetary systems that run a peg to the US dollar finds inflation amplified when American monetary policy is loose. In 1980 Sri Lanka was also printing money for irrigations schemes.
On Thursday the JVP claimed that the strike was ’70 percent successful’ and 100,000 state workers had stayed away. Most public services operated without interruption, underlining the extent of excess workers in the system.
Sri Lanka ‘officially’ has a 1.1 million state workforce but government statements that the salary increment would cost the Treasury indicates the total count is as high as 1.4 million.
The head of state-run Ceylon Petroleum Corporation (CPC) said the strike had improved product