Economists, industry caution on hard times from January

The Government’s decision to increase fuel prices will affect the country’s economically important production and transport sectors, Colombo University’s Economics Department Head Prof. Sirimal Abeyratne said.

Prof.Abeyratne said the country has fallen into a massive dollar shortage, but increasing fuel prices is not a solution to this.

He said increasing fuel prices will definitely weaken the country’s entire production sector and it will badly cripple its economy.

“As a result there will be a massive shortage of goods in the market and such a situation will directly affect people,” he said.

Prof.Abeyratane further said fuel is a main component, but if the price of fuel is increased that would break the country’s whole economy development sector.

He said Government authorities should again focus attention towards the sudden fuel price increase.

Making a statement in regard to the fuel price increase former Ruhuna University Economics professor Nandalal Senanayaka said that fuel could be considered as the back bone in the economy since fuel is used by people engaged in fisheries, agriculture and plantation sectors.

Prof.Senanayaka therefore urged Government authorities to re-consider the price increase of fuel as it will help to reduce the prices of essential commodity items and service charges of certain sections.

Peliyagoda Vegetable and Fish Market Association spokesman Anil Sriyantha said due to the fuel price increase,vegetable transporters have already increased their transport charges and this will affect the prices of vegetable and fish during the forthcoming festive season.All Island Bakery Association Chairman N.K. Jayawardana was too unhappy over the fuel price hike and said this resulted bakery owners to increase their products according their wishes considering the escalating prices of firewood, yeast,sugar and also the transport charges.


by Daily News Sri Lanka

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