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Government gave strong indication that prices of diesel will go up soon saying Sri Lanka can't afford the current "subsidy binge". The Finance Minister also said plans to get a third player for down stream petroleum marketing will also go ahead as planned despites threats of strikes by CPC trade unions.
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"I don't see how we can go on subsidizing petrol and diesel which has a bad impact on our balance of payment. It is not possible to go on this subsidy binge," Finance Minister Sarath Amunugama told a news conference recently.
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"You will have to pay for it somewhere. There is nothing called a free lunch in economics," he said.
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The Finance Minister also said they plan to consolidate the fiscal position before the budget in November.
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The Treasury will stick to the Rs. 65 billion net borrowing for this year and not increase it by 40 percent as announced by the previous government in February.
The UNF government announced plans to increase the borrowing requirement by Rs. 20 billion just before