January 25, 2022

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The first cost of the crisis created by the President is 229 billion rupees – Harsha

Dr. Harsha de Silva, Member of Parliament for the Samagi Jana Balawegaya, says that although he is happy that the government has provided some relief to the people when they are facing severe economic difficulties, this is not a solution to the crisis but the beginning of a vicious cycle.

“We are happy about giving people relief at this time. Because, these people should live. But this Rs. 5000 thing is not going to work. The government says last Friday that food inflation was only 22% this year. But that’s not the real story. It has now almost doubled.

In economics we say that there is a vicious cycle. That is, when the price of goods increases, wages are increased accordingly. It will only increase the price of goods. The injustice here is that these salaries increase only for a select group. Then the first round of the crisis created by the President was 229 billion rupees, which is about 12% – 14% of the total government revenue.

The budget said it would not bring in supplementary estimates next year. So where does this money come from? ”

Dr. Harsha de Silva stated this while expressing his views to the media in Colombo yesterday (04).

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