The Economic Division of the Secretariat For Coordinating the peace process (SCOPP) has been monitoring the consumer prices of goods a typical household purchases in the Northern and Eastern provinces in 2007 with the support of the local Chamber of Commerce, Civil Society Leaders and the Local Monitors.

Jaffna;
The analysis of the past 6 months has been that the LTTE attack on the supply ship Liverpool in January this year resulted in the closure of the Point Pedro Harbour resulting in the bottle neck in the unloading of essential goods needed by consumers in Jaffna. This led to an increase in the price of goods in February. ( i.e Refer column February 4th Prices in the below grid) 

Vessel Availability –Locally and Globally

With the joint public private sector initiative a more realistic demand plan began to emerge for the Jaffna Peninsular but there were insufficient vessels for transport of the quantities required as per the demand plan. This led to an increase of prices once again.(( i.e Refer  data from the above grid  – 26th  June  2007 column).

SCOPP together with FCCISL did a detailed analysis which revealed that there are 30 ships available in the global logistical systems available for chartering. But the demand globally is for 180 ships by the end of June 2007. When the FCCISL contacted the shipping agents, their response was that because of the attack on Supply Ship Liverpoolby the LTTE in January 2007, they were reluctant to meet this request.

This resulted in a Supply Chain issue that created a spiraling effect on consumer prices as demand exceeded supply. The situation is aggravated by the closure of Point Pedro Harbor after the LTTE attack. This leads to a greater issue in the supply chain management on essential items.

Despite these obstacles the Government of Sri Lanka ( CGES) and the private sector (FCCISL) continues to work together to meet the requirements of the Jaffna consumer. In addition, the Government is also facilitating the flow of goods from Jaffna to Colombo, especially of products such as Beetle Leaf and Sea Cucumber.
 
Opening of A9
 
The SCOPP team visiting Jaffna in June 2007, had detail discussions with Northern Commander of STF, Major General Chandrasiri on the above sensitive topic. The key issue on opening the A9 for the transfer of goods will be the LTTE’s use  of the A9 for raising revenue by way of taxes. These funds are used for financing the war in The North/East.

The other issue is the infiltration by LTTE cadres of the Northern Peninsular, that results in claymore mine blasts and increased terrorist attacks on security forces and people of Jaffna.

Vavuniya/Mannar/Trincomalee          
                 
 Further to monitoring the supply chain of essential items to Jaffna SCOPP also monitors the East on the prices of goods. In this case the items are transported by land route. However, the detection of the lorry laden with 1000Kg of C4 explosives in Kurunegala and another in Trincomalee led to the clamping of a security blanket on all vehicles plying the central points in Vavuniya, Mannar and Trincomalee. This in turn led to a supply chain issue once again due to the action of the LTTE. Below is a comparison on prices in Vavuniya district that the SCOOP officials toured when the team noticed that the prices were on the increase.

Madawachchiya – Central Check Point

The SCOPP conducted a detailed analysis on the extra security measures taken due to terrorist activity. All Lorries coming into Vavuniya and going out towards Colombo were being checked at a facility in Madawachchiya which is manned by 15 Police officers. There is unloading, loading and cross loading taking place in the facility, traders undergo many problems i.e. extra costs in loading and unloading, providing security to goods in the parked lorry and having their meals from homes around the vicinity etc. The typical procedures of checking are as follows;

Some recommendations the team is working on:

Omanthai Check point – Opened ONLY for 3 days by LTTE

SCOPP also monitor the prices of essential items in the LTTE controlled areas and recommends action that can be   initiated for the benefit of the people of Sri Lanka. The key issue here is that the Omanthai check point is open for only 3 days a week per a recent directive by the LTTE. 

This leads to only 25 Lorries’ can be checked due to the extra security measures taken (as against the 65 lorries that were examined prior to the detection of the lorry with the C4 explosives).  Once again results in a supply issue that in     turn causes prices increases of goods to the Wanni. The FCCISL use to facilitate transport of 300 MT of essential Items     to the Wanni a month has now fallen to only 162 MT being transported due to the closure of Omanthai by 3 working days by the LTTE.  Which explains the Supply Chain issue that is bound to loom in the near future,  in the Wanni due to actions of LTTE.

Establishing a Whole Sale Centre - Killinochchi
Earlier this year on a recommendation made by the District Chambers of Killinochchi a Whole Sale Distribution Center was established in Killinochchi to accommodate a warehouse facility for sufficient buffer stocks in the Vanni areas. It is a known fact that the LTTE deliberately creates shortages of supplies of essential goods. The officials of the FCCISL who are from the private sector are committed to be a part of these strenuous efforts of the Government to meet the demands of the people in Vanni and Jaffna. ‘Time has come for us to work towards the people of this country be they from the North or the South’ said one of the CEO’s of the District Chambers, when asked why they initiated such a programme.

The Ealanatham, a Killinochchi daily on the 18 February 2007, just three weeks before the LTTE Peace Secretariat report, advertised the maximum retail prices that could be levied by a trader (Prices in English.doc)in the area. This price list gives the reader a better understanding of how the prices of essential goods are being reduced and of how the supply of same was uninterrupted. The Government has done its utmost to bring normalcy for the people of Vanni.

Another 2566  MT of Items in the process of delivery to the Wanni

On the 15th of March the Government approved yet another request from the Killinochchi district for the supply of 2600 MT of items once again co-ordinated by the FCCISL. All necessary arrangements were made at the Omanthai check point for the smooth transportation of these items including general hardware, electrical items, bicycles, bicycle spare parts, tyres and tubes, roofing sheets and sewing machines. However, with the recent developments such as the LTTE initiated terrorist attacks the process of making theses items to the consumers in the Wanni will take longer.

The Future;

From the above the analysis is clear that as and when the Sri Lanka government together with the private sector, tries to bring in normalcy to the people of the North East, we can see how the LTTE with activities which are aimed at disrupting normal life creates a situation that brings hardships to the peace loving Sinhala, Tamil and Muslim people of the North Eastern province.  However, the Government of Sri Lanka(CGES) and the private sector(FCCISL) continuous to work together and on the 20th July 2007 a 3000 MT of space was allocated to the UN for transport of building material Items and WFP stocks to the Jaffna peninsular so that infrastructure development can continue.