High cost of living due to huge war bills - PM
March 5, 2010 03:10 pm
Premier Ratnasiri Wickremanayake has attributed the high
cost of living in
The final phase of the Eelam IV war had concluded in May
last year, with the killing of LTTE supremo Velupillai Prabhakaran.
“We are yet to complete payment of the bill on certain things that were
provided to us by other countries as assistance for the humanitarian
operations,” Wickremanayake said, adding it is not proper to expect the
government will have enough money immediately after such a protracted war.
“The people should be made aware of this. Some think that since this is now
over, the money will be saved. They also think the prices of goods can be
reduced and various other forms of relief can be granted,” he said.
But we still have to pay many bills, the Prime Minister insisted.
“Therefore, we cannot reduce the prices of goods very drastically in line with
world market prices. But we can provide concessions. We have even provided tax
concessions on certain goods,” he told a recent meeting in Horana in
However, economists have argued that the
government could have reduced prices of certain commodities when prices
remained weak in the international market last year.
Wickremanayake also stressed that the government hoped to implement a rapid
development programme after the April 8 general election to fulfil the
aspirations of the public.
“While the short term economic stabilisation aspect of the IMF programme has
been achieved, the government continues to remain engaged with the Fund to
address medium term economic recovery in the context of post-war economic
prospects and global economic recovery,” said the Sri Lankan Ministry of
Finance and Planning in its ‘Pre-Election Budgetary Position Report’ released
recently.
Accordingly, the release of the third tranche of IMF loan amounting to USD 326
million will be delayed till the review is completed, as at this stage there is
no urgent requirement to further strengthen external finances, it said.
PTI