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Fuel prices down, but CPC going private
By Chamintha Tilakaratne
Measures to privatize sections of the Ceylon Petroleum Corporation and introduce structural reforms in the Ceylon Electricity Board will be shortly announced by the government as part of major plans to earn more revenue.

Along with the large-scale privatization, the government is also to announce some immediate relief to the people by fixing fuel prices instead of allowing them to fluctuate in line with world market rates. The fluctuation in fuel prices since February this year has been identified as one of the main reasons for the unprecedented increase in the cost of living.

CPC Chairman Daham Wimalasena confirmed that 'sections' of the Corporation would be privatized, but declined to identify them.

Power and Energy Ministry Secretary K.K.Y.W. Perera told The Sunday Times the CEB also would be restructured.

Finance Minister K.N. Choksy in a public statement today is expected to spell out details of government's plans about privatization of loss making state institutions, tax reforms to improve the economy and other measures to grant relief to the people.

The Minister is to insist that privatisation is essential to salvage the country from a staggering debt burden of some 327 billion rupees, despite protests against privatisation by political parties and trade unions.

Minister Choksy is also likely to insist on the implementation of the new Value Added Tax as a revenue earning measure despite growing concern it might send the cost of living soaring further.

As a measure of relief to the people, the Minister plans to deduce the recovery debt percentage from fuel prices - meaning that the prices might come down.

Prime Minister Ranil Wickremesinghe in an address to the nation on Thursday explained the gravity of the economic situation and called on the country to bear with the government until sufficient measures were taken to improve the economy.

Minister Choksy is also likely to announce new measures to be introduced in parliament next month to provide more jobs and accelerate development as part of the plan to help people meet the rising cost of living.

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