the economic crisis affects the self-employed

Tuk tuk drivers, hotel owners, photographers, everyone in Sri Lanka shares the same problems. Fuel is still lacking, which prevents movement. Large amounts of foreign currency cannot be withdrawn and consequently many purchases are blocked. Many businesses that have already closed.

Colombo () – The country’s economic crisis has hit all categories of workers, from the 3 million self-employed to those in small and medium-sized enterprises (SMEs), which play a fundamental role in the national economy. According to analysts and experts, since Sri Lanka does not have an unemployment insurance program and labor market policies are weak, it would be necessary to ensure adequate social coverage, especially for the self-employed.

But right now there are many other sectors facing increasingly serious difficulties, particularly those related to tourism. Hotel and restaurant owners are struggling on multiple fronts, from buying fuel to getting staples like vegetables and fish, which have skyrocketed in price. To replace gas, many have turned to firewood, which is equally scarce and expensive, especially in the city. Those who did not have space to light a fire with wood have been forced to close.

According to sources at the All Island Three-wheeler Drivers Union, due to rising fuel prices, tuk tuk (three-wheeled taxi) fares have risen to 100 rupees per kilometer (26 euro cents) from 75 rupees per kilometer. km (20 cents). Drivers fear a long-term reduction in passengers, but the problem usually arises much earlier, when they must get gas. To buy fuel you have to spend many days in line and sometimes, even so, there is no way to get it. Perera, who lives in Negombo and drives a three-wheeled taxi, used to make several trips a day, but he no longer has passengers. He says that many young people have quit their jobs and left the country in search of employment.

Prime Minister Ranil Wickremesinghe has decided to appoint a regulatory authority for three-wheelers, but many tuk tuk drivers are of the opinion that the decision will not have the desired result, because the provincial councils are slow and the legislation on tuk tuk drivers – they say – should be introduced in Parliament.

An initiative to promote electric and solar-powered taxis is also under way, but the conversion could cost between 600,000 and 700,000 rupees (1,574 to 1,836 euros): an investment difficult to recoup in the future and therefore probably not recommended. According to Tissera and Dissanayaka, two tuk tuk drivers from Colombo, an extensive network of charging points and solar panels at service stations would also be necessary.

Other self-employed workers also explained their difficulties to : the owners of two photo studios in Kandy, who worked for various advertising companies, had a profitable business in recent years. But now Sri Lankan businesses have “slashed their advertising budgets” and those in commercial photography are struggling to find clients. The owner of a photo studio in Ratnapura, who buys his equipment and supplies online on e-commerce sites, explained that he was limited by the restriction of importing a maximum of 100 dollars per month imposed by the government due to the crisis. The possibilities of displacement are also limited by the lack of fuel and the cuts in the power supply prevent the photographic editing, so that many do not manage to deliver the work on time.

Computer store owners Romesh and Sarath have also been affected by the dollar crisis. Since banks don’t issue bills, they can’t buy computer equipment to sell. Even using other banks they have not been able to obtain letters of credit and they are worried that they may soon be forced to close their business.