May 25, 2008 (LBO) – Sri Lanka’s bus fares will go up by an average 27.2 percent from Monday following a 37 percent rise in diesel prices on Saturday, an official said. The island has a formula under a national pricing policy agreed with bus operators and the government.
The fares were finalized following discussions with transport minister, a private bus operators association and the national transport commission.
The smallest 6 rupees fare would go up to 7 rupees, the 8 rupees fare to 10 rupees, 11 rupees to 14 rupees, 14 rupees to 17 rupees.
The 16 rupees fare would go up to 20 rupees, the 19 rupees fare to 23 rupees, the 21 rupee fare to 26 rupees.
Yesterday Sri Lanka suddenly raised diesel prices by 37.2 percent after dragging their feet for over four months since the last price increase.
Sri Lanka’s politicians delay fuel price increases forcing petroleum utilities to borrow heavily from the banking system and fuelling inflationary and exchange rate pressure in the process.
Critics point out that more often than not prices are usually raised only after both these objectives have been met.
Politicians have repeatedly shot down