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Amidst political crisis in Sri Lanka, new Prime Minister Mahinda Rajapaksa cut the fuel prices sharply while pointing fingers at the previous government’s “ill-conceived” financial policies which apparently affected country’s economy and increased the cost of living.
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Rajapaksa, who also serves as the Finance Minister, slashed petrol price by Rs 10 ($0.058) and diesel by Rs 7 ($0.048) per litre respectively with his announcement of a new series of economic measures.
Despite questions being raised on the constitutional validity of his appointment, Rajapaksa went ahead to make these announcements unilaterally.
The Finance Ministry, in a statement, raised concerns about the slow growth rate and rise of the cost of living in the past three years. “The honorable Prime Minister (Rajapaksa) is of the view that ill-conceived economic and financial policies of the previous government have led to this situation by marginalising local entrepreneurs, industries and domestic production,” it said.
The ministry maintained that the budget targets could be fulfilled in 2018 in spite of tax deductions. “The government is confident that the primary surplus of 1.8 per cent of the GDP and the budget deficit of around 4.9 per cent of the GDP that have been targeted for 2018 could be achieved in support for further fiscal consolidation to provide economic stability,” the Finance Ministry said.
However, in a turn of events, Wickremesinghe was replaced with Rajapaksa by President Srisena last Friday and suspended the Parliament, much to the dislike of Wickremesinghe.
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