The opposition is blaming bad economic policies for rapid price rises. The opposition is blaming bad economic policies for rapid price rises. The Treasury has made several attempts to correct macro-economic imbalances, but it has been thwarted by its own coalition partners in some cases.
The Treasury has at last corrected fuel prices, preventing the build up of further imbalances in the economy.
Part of the reason for the price rises was an increase in crude prices.
But the opposition says the dollar depreciation and scrapping the price adjustment formulae has made the whole problem worse.
“Our system was to increase prices by 2 rupees or 50 cents on a monthly basis. Then it does not cause all prices in the economy to go up,” says Bandula Gunewardene, Former Deputy Finance Minister
“If the dollar was around 90 rupees, the increase in petroleum prices would have been only 15 to 20%. Because the rupee was stable we were able to contain prices, when petroleum prices went up by 17% in our time.
But now everything doubled. Prices go up in the world market and the