Drastic drop in inflation

Govt balancing interests of consumer and farmer - Trade Minister

Manjula Fernando and Nadira Gunatilleke

COLOMBO: The Government has succeeded in bringing down inflation from 20.5 per cent in March to 13 per cent in June, Trade and Marketing Development Minister Bandula Gunewardena said yesterday.

"However, the Opposition and the critics of the Government still cite the old 20 per cent figure whenever they talk of the issue," Minister Gunewardena lamented.

He said this was a result of hard work by the Government to bring down the cost of living while at the same time protecting the interests of the local farmer.

"It is difficult to strike a balance between the two. The price of Sugar has come down by Rs.15 since March. We can reduce the Sugar price by a further Rs.10, but then the 30,000 who are dependant on the sugar industry will be directly affected."

The Minister challenged critics to import consumer goods at lower prices.He said if anyone comes forth to take up the challenge the State will facilitate with free warehouses in their bid to help slash the prices of essential items, as it was aware that the Cost of Living was a big burden on the general masses.

"The Government is doing its best to bring down the prices of essential goods but when it comes to commodities like petrol, diesel, infant formula, powdered milk, wheat flour and gas we are helpless."

He added that it was irrational to demand traders to offer goods below cost and irresponsible on the part of the Opposition to force the Government to do so.

It should not be forgotten that all this has been done while maintaining a costly war, providing subsidies for farmers, effecting salary increases and giving jobs, none of which had been done during the previous UNP regime.

"The control of CoL is not entrusted upon me alone. The decisions are taken by a special Ministerial committee appointed by the President.

It is unfair to castigate me alone over this issue," Minister Gunawardena explained.

***