Sri Lankan economy is facing difficulties – Cabinet Minister

A Sri Lankan Cabinet Minister today admitted that the country is facing economic difficulties, but added the issue is common for the entire world.

Minister of Health Maithreepala Sirisena says it is in this backdrop the government had to take hard decisions such as raising fuel prices and imposing a fuel surcharge on electricity bills.

Sirisena says if these hard decisions are not taken now, the country and its public will face more economic hardships within another few months or in a years time.

The Minister’s comments which were made this morning, while attending a health related function comes, as Sri Lankan economy is facing problems such as its high import bill and widening trade gap.

Sri Lanka’s trade deficit during the first eleven months of the year 2011 has widened by 111.3% to stand at a massive sum of US$ 8.835 billion.
Import expenditure during the same period has incurred a bill of US$ 18.41 billion which is a year on year increase of 53.2% thus putting pressure on the trade deficit.

This situation, prompted Sri Lanka’s Central Bank to increase its key policy rates by 50 basis points aimed at curtailing import related credit, thus helping to reduce the widening trade deficit and the current account deficit.

The country also imposed a credit ceiling on local banks to ensure that lending is contained during this year.

Last week, the Central Bank also decided to let the market decide the exchange rate.

The decision resulted in the Sri Lankan rupee depreciating to its lowest level early this week with the dollar at one point trading at Rs. 121.

http://www.news360.lk/politics/sri-lankan-1123-politics-economy-is-facing-difficulties-%E2%80%93-cabinet-health-minister

ordinary people of this country were aware well before the ministers comments.
they won't feel any difficulties even they live country like in somalia. their life style is same. why not politicians also secrifies in some way towards this country..

sriranga wrote:A Sri Lankan Cabinet Minister today admitted that the country is facing economic difficulties, but added the issue is common for the entire world.

Minister of Health Maithreepala Sirisena says it is in this backdrop the government had to take hard decisions such as raising fuel prices and imposing a fuel surcharge on electricity bills.

Sirisena says if these hard decisions are not taken now, the country and its public will face more economic hardships within another few months or in a years time.

This is like trying to boom the share market with credit.It will not sustain if real funds do not come.

We have to increase country's productivity and attract more and more foreign investment(not in CSE) and sametime have to reduce the corruption.

rijayasooriya wrote:

sriranga wrote:A Sri Lankan Cabinet Minister today admitted that the country is facing economic difficulties, but added the issue is common for the entire world.

Minister of Health Maithreepala Sirisena says it is in this backdrop the government had to take hard decisions such as raising fuel prices and imposing a fuel surcharge on electricity bills.

Sirisena says if these hard decisions are not taken now, the country and its public will face more economic hardships within another few months or in a years time.

This is like trying to boom the share market with credit.It will not sustain if real funds do not come.

We have to increase country's productivity and attract more and more foreign investment(not in CSE) and sametime have to reduce the corruption.

Good point.
But very hard to achieve by our politicians.

rijayasooriya wrote:

sriranga wrote:A Sri Lankan Cabinet Minister today admitted that the country is facing economic difficulties, but added the issue is common for the entire world.

Minister of Health Maithreepala Sirisena says it is in this backdrop the government had to take hard decisions such as raising fuel prices and imposing a fuel surcharge on electricity bills.

Sirisena says if these hard decisions are not taken now, the country and its public will face more economic hardships within another few months or in a years time.

This is like trying to boom the share market with credit.It will not sustain if real funds do not come.

We have to increase country's productivity and attract more and more foreign investment(not in CSE) and sametime have to reduce the corruption.

Good point. We cannot eliminate the corruption. But they at least should try to minimize. However, do you think it's going to happen? I don't think it will happen even in dream.

Monster wrote:

rijayasooriya wrote:

sriranga wrote:A Sri Lankan Cabinet Minister today admitted that the country is facing economic difficulties, but added the issue is common for the entire world.

Minister of Health Maithreepala Sirisena says it is in this backdrop the government had to take hard decisions such as raising fuel prices and imposing a fuel surcharge on electricity bills.

Sirisena says if these hard decisions are not taken now, the country and its public will face more economic hardships within another few months or in a years time.

This is like trying to boom the share market with credit.It will not sustain if real funds do not come.

We have to increase country's productivity and attract more and more foreign investment(not in CSE) and sametime have to reduce the corruption.

Good point. We cannot eliminate the corruption. But they at least should try to minimize. However, do you think it's going to happen? I don't think it will happen even in dream.

nice thoughts, thanks

Monster wrote:

rijayasooriya wrote:

sriranga wrote:A Sri Lankan Cabinet Minister today admitted that the country is facing economic difficulties, but added the issue is common for the entire world.

Minister of Health Maithreepala Sirisena says it is in this backdrop the government had to take hard decisions such as raising fuel prices and imposing a fuel surcharge on electricity bills.

Sirisena says if these hard decisions are not taken now, the country and its public will face more economic hardships within another few months or in a years time.

This is like trying to boom the share market with credit.It will not sustain if real funds do not come.

We have to increase country's productivity and attract more and more foreign investment(not in CSE) and sametime have to reduce the corruption.

Good point. We cannot eliminate the corruption. But they at least should try to minimize. However, do you think it's going to happen? I don't think it will happen even in dream.

It is the million dollar question.With this bunch of politicians(both oppositions and rulers) I do not think it is going to happen.When MR(with a good team including SF also) finished the war I thought he would do something.But now it seems he is also failing especialy because he could not appoint a proper team for that.

Same as talking about the ever decreasing market its too late to discuss about these things as well..

The only positive news I heard in 2011 was.... We are not going to host the commonwealth games in 2018.

Phew what a relief..

UKboy wrote:Same as talking about the ever decreasing market its too late to discuss about these things as well..

The only positive news I heard in 2011 was.... We are not going to host the commonwealth games in 2018.

Phew what a relief..

If accidently we got it, omg we whould have been finished

We are reactive rather than proactive.
...........But other nations, the other way............

Bunch of liars and back boneless followers running the show.
Complete revamp needed but in our country most of us do not have the gut.( selfish)

This government should encourage more n more youth to go overseas and work. That's probably one of the few remaining options they have at the moment.

They should stop giving government jobs to anyone anymore.

UKboy wrote:This government should encourage more n more youth to go overseas and work. That's probably one of the few remaining options they have at the moment.

They should stop giving government jobs to anyone anymore.

agreed. but even last week they gave jobs for politics.