Sri Lanka It's Happening

August 2, 2004

The price of domestic cooking gas has jumped over the moon. This follows just a week after the price of petrol was increased by more than 15% - by a government that promised to reduce the cost of living.

The cost of living is a big issue in Sri Lanka. Government servants (who rarely work for their living) get a pittance as a salary and simply cannot make ends meet with the spiralling increase in prices. The usual answer of left leaning governments as the present one is to provide subsidies.

While most goverments in the world subside local farmers or industries in some way or other Sri Lankan goverment is unique in subsiding imports. Diesel, wheat flour and agro chemicals are some of the most prominent items on this list.

Cooking gas was aslo on this list but the cash strapped government has decided to do away with the subsidy hence the price hike. Diesel prices are sure to follow.

Posted by raditha at August 2, 2004 1:51 PM