Inflation dips

by L.S. Ananda Wedaarachchi

"The rate of inflation rapidly dropped during the last six months due to the far-sighted implementation of intervening strategies introduced by the Mahinda Rajapaksa Government," said Trade, Marketing Development, Cooperatives and Consumer Services Minister Bandula Gunawardena.

The rate of inflation decelerated to the lowest rate of 10.7 per cent in January from its peak of 28.2 per cent in June 2008. The aim of the Government was to bring it down to a single digit," he said.

He said the Government was able get the prices of essential commodities such as petrol, diesel, kerosene, LP gas, milk powder and cement reduced. Import duties were reduced or waived on dhal, green gram and few other pulses. Bus fare was brought down by 15 per cent as well as the train fare. On the other hand a massive food production drive aimed at self-sufficiency in food was being implemented throughout the island to produce rice, vegetables, fruits and other food items, he said.

Laksathosa and cooperative super market networks are all over the island especially to cater to the regional and village base consumer requirement," he said. The benefits given by the Government to the masses by reducing the prices and abolishing the import duties in essential commodities are being blocked by some black marketeers and some wholesale traders.

The main objective of setting-up. Special Economic Centres (SECs) in Dambulla, Nochchiyagama, Keppetipola, Narahenpita and other main producing areas is to arrange buyer-producer direct meeting avoiding the middleman.

The producer as well as the consumer are benefitted by fair prices under this SEC program, he said.