Mechanism to control CoL mulled

Ramani KANGARAARACHCHI

COLOMBO: The Government has worked out a mechanism to control the Cost of Living without putting a heavy burden on the people as a result of rising fuel cost in the world market while continuing the development projects, welfare measures and the peace process, Prime Minister Ratnasiri Wickremanayake said.

He was briefing the media at the Prime Minister’s Office yesterday.

Members of the Cabinet Sub- Committee appointed to examine how the variations of prices of fuel in the world market affect Sri Lanka were present at this briefing.

The Prime Minister pointed out that the Government was compelled to allow the Petroleum Corporation to increase fuel prices subject to recommendations made by the Government soon.

Petroleum Resources Minister A.H.M. Fowzie explained that the loss for the Petroleum Corporation for the last two months as a result of not increasing the fuel price as per the variation in the world market was Rs.3 1/2 billion.

He said it will cost US$ 500 milion to construct refineries to avoid this situation. However, the Government has decided not to increase electricity charges under any circumstances.

Minister of Trade, Marketing Development, Co-operatives and Consumer Services Bandula Gunawardena said the prices of food items such as sugar, onions, green gram, dried chillies and milk powder have dropped drastically and some private sector companies have indicated that they are compelled to close down business as they cannot afford the reduction of prices.

He said the prices of dhal will also be reduced next month and the cost of Janasahana package will be stable. However, he warned that it is compulsary to increase local agricultural production protecting the local farmers.

Minister of Enterprise Development and Investment Promotion Sarath Amunugama said every country which does not produce oil is facing this challenge due to the fuel price increase in the world market but the Government has still not stopped free education, health facilities and other welfare packages. Ministers Rajitha Senarathna and Dallas Alahapperuma also spoke.