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by Ranil Wijayapala

The People's Alliance is not ready to go for a fresh election spending another Rs.700 to 800 million at a time when the country is undergoing an economic crisis, SLFP spokesman Mangala Samaraweera said yesterday.

Addressing a press conference at the Opposition Leader's office along with PA Media spokesman Dr. Sarath Amunugama, he said there are other ways of forming new governments without going for fresh elections.

The country has already gone for elections in two consecutive years, he added. Dr. Amunugama said that the crisis in the government is apparent as its backbenchers themselves are making overtures to the Opposition to bring down the Government as soon as possible.

He said it was a surprise to hear the Prime Minister call for a fresh mandate after his meetings with the US President Dr. Amunugama also accused the government for increasing the prices of essential items after the implementation of the VAT from August 1.

He said the Shell company has already raised the price of gas by Rs. 14 and the Laugfs gas has also informed the Treasury regarding the increase of gas prices.

He said that essential items like sugar, dhal, onions, chillies has gone up as these items has not been exempted from the VAT. "The Government rushed the VAT Bill in parliament without giving the opposition a chance to propose amendments to it", he added. The Government has shown its inability in economic management as they could not bring down the cost of living. Inflation has also risen to double digit figures (11 per cent), he added.

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