Drop in inflation - Harsha

National Policies and Economic Affairs Deputy Minister Dr. Harsha de Silva said the inflation rate has been reduced to 5.8 percent and as a result there is a reduction of Rs.500 for food commodities per month.

Addressing the media at the UNP headquarters in Sirikotha yesterday, he said that there is a decrease in coconut prices as well and added that there is a reduction of Rs.229 from the expenditure on coconuts per month, according to the Household Income and expenditure survey -2017.

In the meantime, the inflation rate during the previous month (December 2017) was 7.1 percent.

De Silva refuted the recent allegations made by Basil Rajapaksa that inflation, tax and unemployment rates have increased under the present government.

He said that one should not make such statements without adequate proof and added that the Rajapaksas’ should go through the reports issued by Census and Statistics Department.

“The recent quarterly report of the labour force survey stated that the employment rate was 7,700,489 in 2014 and it has been increased to 8,163,869 in 2017. Deputy Minister de Silva further said Central Bank Governor Dr.Indrajit Coomaraswamy does not have any political motives and he is determined to reduce the inflation rate.

“The former government practiced an irresponsible financial management but the present Governor maintains professional stability and we are thankful for it,” he said.

The Deputy Minister noted that after getting Parliamentary approval for the liability management action plan, it will be exclusively used for liability management.

He said that the action plan will deal with all prevailing issues related to loans and added that they have strategies to deal with the loan bunching issues as well.

“The IMF, rating agencies and economic experts have approved the liability management action plan. But, there are a few people who continue to find faults,” he said.

He added the stolen assets task force are also in the process of finding the stolen assets under the previous government.

“They are mainly hidden in Dubai and many other places. No mutual legal agreements were signed. Therefore, there is no official link to look into those agreements,’ he said.