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by Attanagalla special correspondent

Peace is essential for a stable economy, said Minister of Rural Economy and Deputy Minister of Finance Bandula Gunawardena.

The government is moving step by step on the path to peace. All peace loving people are supporting the peace process, the minister told at a seminar on the current peace process at the Veyangoda Food Stores Complex auditorium.

It was organised by the Attanagalla UNF Chief Organiser and Indigenous Medicine and Disaster Management Minister Sarathchandra Rajakaruna.

Ven. Giridara Sumanajothi Thera, Adikarana Sanghanayake Siyane Hapitigam Dekorale administered Pansil.

The people have given this government a mandate to find a peaceful settlement to the ethnic problem. We have taken that challenge and a significant improvement can now be seen in the process," the Minister said.

There is also mass support for the government's strategy to bring peace by peaceful means, Gunawardena said.

PA regime plunged the country into economic ruin by its wasteful expenditure. The government coffers were left empty, the Minister said.

Referring to the increasing cost of living index, Gunawardena said salaries of public servants and pension benefits cost one third of the government's expenditure. If the VAT is removed now, the government has no alternative but to stop paying public servants salaries and pensions, he said.

The Minister said by November this year, the government will be able to bring down prices of essential consumer items by 50 per cent, if the peace process continues.

Agriculture and Livestock Minister S. B. Dissanayake said, Prime Minister Ranil Wickremesinghe was trying his best to salvage the country from the economic woes.

Some sections of the PA like the LSSP and CP say they are supporting the peace move. But the JVP and SLFP have come to an understanding to oppose it, he said.

Lands Minister Dr. Rajitha Senaratne said the JVP was trying to create anarchy in the country.

Indigenous Medicine and Disaster Management Minister Sarathchandra Rajakaruna and MP Edward Gunasekera also spoke.

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