ECONOMYNEXT – Sri Lanka’s Education Minister Susil Premajayantha signaled price reduction in fuel and electricity tariff in line with the rupee appreciation.
Sri Lanka’s rupee currency has appreciated more than 15 percent in the last five sessions from 360 to around 315 against the US dollar with exporters converting greenback on positive sentiment after the World Bank’s finance arm International Finance Corporation approved a $400 million loan for three private banks.
“We should be patient. The disposable income has gone down with the prices going up. Now it is reducing,” Premajayantha, also the Leader of the House, told the Parliament.
“The price of fuel also will be reduced in the coming days. We have bought spot purchases and not on term. Next time the cost of unloading in rupee will go down, due to rupee appreciation. That benefit will go to the general public.”
“The Minister of Energy said by June the tariff will be revised again. We have to be patient. We have not become Venezuela or Argentina. We have not become a Pakistan. The inflation is coming down. The rupee that was at 362 against the USD is now at 307. Now it has further come down.”
Sri Lanka’s fuel and electricity prices have more than tripled in 2022 as the government stopped subsidies given to the fuel and energy sector after an unprecedented crisis.
The price hikes have already resulted in cascading effect with increasing the prices of all the essential goods to unprecedented level, resulting in street protests, (Colombo/March10/2023)