Pre-poll moves to reduce cost of living

Impending local or provincial council elections, or even both, have prompted the Cabinet Committee on Economic Management (CCEM) to find of bringing down the cost of living.

At Tuesday’s meeting chaired by Prime Minister Ranil Wickremesinghe, measures to lower spiralling living costs formed the subject of discussion.

Senior Central Bank staffers were invited to make presentations. Deputy Governor Nandalal Weerasinghe was to note that during the late J.R. Jayewardene’s tenure, inflation stood at around 30 percent. This came down to 25 percent under the late President Ranasinghe Premadasa. It was now in the region of 8 to 9 percent, he pointed out. Yet, he noted that there were hardships and pointed out inflation should be contained at four to six percent. High interest rates, slowing food production and the recent devastating floods did cause problems, he added.

Special Assignments Minister Sarath Amunugama said there was a strong need to bring down prices and thus lower living costs.