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Prime Minister Ranil Wickremesinghe declared yesterday that the government has taken the initial steps to unite a divided nation.

"The economy and democracy were in jeopardy when the UNF came to power. Now killings and bomb blasts have come to an end. We took the initial steps to unite the divided nation and are committed to a permanent solution," Prime Minister Wickremesinghe told the Government Parliamentary Group yesterday.

He told the meeting that the Treasury was virtually empty when the UNF took over the country. He compared the then economy to a dengue patient, but said "we rescued his life within six months".

The patient however is not yet fully recovered, he said, expressing the hope that the Government would be able to do it.

The Prime Minister said the probationary Government between the PA and the JVP had brought about a number of adverse economic consequences, a Prime Minister's office news release said.

The probationary Government made arrangements for a 250 million dollar loan of which 130 million dollars had already been taken by the then Government under certain adverse conditions including hike of transport and petroleum prices, privatisation of a number of State institutions and cutting down the Samurdhi subsidiary, he said. "We can't break these conditions, but now we try to ease them," he said.

"Independent Commissions will soon be set up. We gave the legal right to lodge petitions at the Local Government Polls and there was no interference with the Election Commissioner's work," he said.

Pointing to the end of the power crisis and favourable price for paddy cultivators, he said the Government is gradually restoring the economy.

A special operation will be implemented within the next two weeks in collaboration with Provincial Councils, Pradeshiya Sabhas and Urban Councils and other state institutions to combat the dengue epidemic.

Health Minister P. Dayaratne yesterday briefed the Government Group meeting on the steps taken by the Ministry to avert the dengue epidemic. Ministry's Additional Secretary Dr. Nihal Jayathilake explained the counter measures.

The Group meeting also paid attention to the problems faced due to a 25 per cent cut down of Samurdhi aid following an agreement reached with the IMF during the PA - JVP probationary period. It was also revealed that the highest number of poor people live in the Attanagalla electorate.

MP Sarathchandra Rajakaruna pointed out that action should be taken against those who abused state resources and properties during the last regime, thereby plunging the country into an abyss.

A lawyers group led by Finance Minister K.N. Choksy were entrusted with the task of looking into the legal grounds to take action against such culprits. Their report will be presented shortly.

Members also paid their attention towards the increasing crime rate in the country.

Members also expressed their views and opinions on ways and means of increasing the income level of the people and improving the economy which was ruined by the poor management policies of the PA- JVP probationary Government.

It was revealed that the Prime Minister would present before the people the country's true economic situation and measures to rebuild the ruined economy.

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