Sri Lanka president warns of external fallout

Feb 04, 2012 (LBO) - Sri Lanka's President Mahinda Rajapaksa warned of possible fallouts from a weak global economy during a speech to mark the island's independence from British rule.





"The economic crises in the world also affect our country," the English text of President Rajapaksa's speech delivered in Anuradhapura, an ancient capital of the country, said.

"It is also important to understand the problems we face due to the rise in oil and gas prices.

"It is important to be aware of the reality. In face of all these we should be prepared to demonstrate our strength and courage to the world.

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Sri Lanka is currently facing pressure on its dollar peg, partly due to borrowings from the banking to cover losses of a state power utility which delayed price rises. Sri Lanka also under-prices Diesel but sell petrol at high prices.

Rajapaksa said due state programs to revive villages and incomes of people, and agriculture Sri Lanka has faced a 'food crisis' well.

He said Sri Lanka is becoming self sufficient in foods and is "even strong enough to export food to the world outside.

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Sri Lanka recently gifted a consignment of rice, a heavily state supported and protect