News
|
||||
Get
ready for subsidy shock
Dr. Amunugama told a workshop on regional development experience at Hotel Galadari in Colombo on Friday that the decision would be carried out in the next two weeks or so. "In the next couple of weeks you will hear that we are taking the first tough decisions to shift our investments away from subsidies. Away from consumption to production, particularly in rural areas. Heaven help us all, but I think we have to do it," Dr. Amunugama said. However, he conceded that the move would lead to a "fair increase" in the cost of living. He said it was futile to talk about regional development unless someone could take the decision and go through the hardships for about three to four years until "our products catch up". "We hope to go onto a tax regime and a tariff regime where all subsidies on sugar, chillies, onions and potatoes, all those items that can be grown locally, would be removed," Dr. Amunugama told the meeting. Minister Amunugama speaking hours before the fuel prices were increased said: "By the time you go home tomorrow you may have to put diesel in your vehicle at a much higher price." On Friday night, the government raised the price of petrol by Rs 3 a litre and diesel by Rs 4. This is the second hike in petrol prices in three weeks. Earlier the price of petrol was raised by Rs 6 per litre. The fuel price hike has already had an impact on the cost of living with prices of food items and transport rates being jacked up. A spokesman for the Private Bus Association said they were mulling over a 12 per cent fair hike because maintenance, repair and other costs had also gone up in addition to the fuel costs. |
||||
Copyright © 2001 Wijeya Newspapers
Ltd. All rights reserved. |
