Good Advice

Sri Lanka has to cut the budget deficit and respond correctly to rising oil prices, in order to avoid another setback to the economy, a top private sector professional said.

Sri Lanka has to cut the budget deficit and respond correctly to rising oil prices, in order to avoid another setback to the economy, a top private sector professional said. “They (Government) are reluctant to adjust the prices.



There are officials in the finance Ministry urging the government to increase the (oil) prices.

The government, being a democratically elected the government does not want to displease the people -so they are not increasing the prices.

“There was a formula for oil price calculation.

But the previous UNP government facing an election stopped using the formula and said not to increase the prices and it would subsidize.

And the present government is continuing it,” Deva Rodrigo, Chairman, Ceylon Chamber of Commerce said.

Mr. Rodrigo was addressing the LBR-LBO CEO forum last Wednesday.

He was speaking on the lessons Sri Lanka can learn from the Irish Republic.

Bad policy, especially during the oil shocks in the early 70 and 80s made Ireland into one of the poorest nations in