Happy tidings for NY:

Cost of Living dips

RASIKA Somarathna

Sri Lankan consumers are in for a New Year bonanza due to the rapid decrease in Cost of Living indexes in recent times, Trade, Marketing Development, Cooperatives and Consumer Affairs Minister, Bandula Gunewardena said yesterday.

The Colombo Consumer Price Index, computed by the Department of Census and Statistics, decelerated sharply to 5.3 per cent in March, 2009, considered to be the lowest inflation ever recorded since January, 2004.

The Minister addressing the media said that a series of constructive measures adopted by the Government think tank, appointed to look into ways in bringing down the cost of living had paid rich dividends paving way for the deceleration. He specifically identified issues such as the growth in local agri-based products, global price reductions of fuel and domestic gas, strict monetary policies of the Central Bank and a well coordinated buying and distribution mechanism that are directly responsible for the encouraging results.

The Minister further said that the paddy and vegetable production in the country had achieved significant growth during the recent past almost achieving levels of self sufficiency.

He also said that in comparison to the prices of essential consumer goods last year, on the eve of the Sinhala and Tamil new year, the prices this year had come down drastically, some even recording figures beyond a fifty percent reduction.

Thus Opposition allegations on cost of living, even in the face of these significant achievements, was a farce, the Minister charged.

He added that these opposing elements should study the facts before levelling these kind of baseless allegations.