Money circulation down: PM

15 July 2018 11:18 pm - 31     - {{hitsCtrl.values.hits}}


The demand for consumer goods had gone down as a result of money circulation decline in the country, Prime Minister Ranil Wickremesinghe said today.

However, he assured that the Government had decided to pump in money into the villages through the Gam Peraliya programme under which maintenance of tanks would be handed over to farmers.

Prime Minister Wickremesinghe said this while speaking at the launching of Gam Peraliya in Nikaweratiya last morning.

“Livelihood of the people in this area had come to a standstill as a result of the long-term drought, which lasted for four harvesting seasons.

“People in this area cannot cultivate crops. What can they do except cultivating crops? The economic downturn is visible today. Sales of consumer goods have gone down. Money circulation in the country has declined,” the Prime Minister said.

He said some areas had got water to cultivate essential crops but that was hardly efficient.

“This is why we decided to focus on villages. If we renovate tanks the villages will benefit from these projects. The contracts to desilt them will be given to the villagers themselves. The soil collected from desilting will be given to farmers. They can learn something from that. At the same time, the concessionary loans schemes will be launched for the rural people. The money would be pumped into the villages by these projects,” the Prime Minister added.

He also assured that infrastructure facilities will be enhanced as well. The Prime Minister revealed that new laws would be brought in to ensure that the farmers would benefit from it.

He said this is called Wevu Govisathu Kirima (Handing over the responsibility of maintaining tanks to the farmers in the villages).

“The Government also intends to provide assistance to those farmers who are willing to cultivate organic paddy,” he said.

The Prime Minister said Gam Peraliya was the second phase of Government’s programme to stabilise the economy.

“The first phase of this programme was to settle the debts. There were no funds to pay the loan instalments when we took over.

“We would have to go back to the era, where only two yards of cloth was given to a family if we were not able to find funds to settle debts.

“We found some funds but had to increase taxes to find more funds. We were criticized heavily for this,” he said.

The Prime Minister said that the tax structure would be changed as the Government felt that some taxes were unfair.

At the same time, he said the Government would also focus on large-scale development projects, especially for enhancing exports.

Hambantota port Public Private Partnership, Mattala International Airport Public-Private Partnership, LNG power plant in Hambantota and the Oil Refinery would be part of this plan, he said. (Yohan Perera)

  Comments - 31

  • ajay Sunday, 15 July 2018 11:58 PM

    looks to be a genuine effort and a good one. please keep the politicians away from this because they will try to score points using these funds and eventually they will pocket this money. leave the funds with the banks or pradeshiya saba and closely monitor the expenditure through a special arrangement with auditor general's office. you will anyway score points if this concept succeeds.

    sach Monday, 16 July 2018 04:01 PM

    The reason is people dont spend money. Because these buggers has destroyed the economy

    umen Monday, 16 July 2018 06:48 PM

    When came to power all the development projects shut down. That's when the money circulation start to stop.

    vithura Monday, 16 July 2018 12:41 AM

    Controlling consumer credit using monetary instrument helps restrain demand driven inflationary pressures, simultaneously supply side financing needs to be strengthened for sustained economic growth.

    observer Monday, 16 July 2018 01:30 AM

    As you stated the era in villages have changed. The new generation does not want to engage in farming. There is a labor crisis in the villages.

    Gummay Baiya Monday, 16 July 2018 01:45 AM

    Your buddy Ravik who was awarded being the worl'd greatest finance minister said that Soros and his Western buddies will bring their billions to invest and park here?

    karu Monday, 16 July 2018 04:04 AM

    This what happens when the IRD is working round the clock like a suction pump while corruption in the state level remains unchecked.

    Ravi Monday, 16 July 2018 05:11 AM

    People don't have money to circulate. The politicians have robbed us to the marrow.

    MP Monday, 16 July 2018 06:09 AM

    The demand for consumer goods had gone down because people cannot afford high prices on them. Are you happy now?

    Haramanis Monday, 16 July 2018 06:38 AM

    No money - full stop. In the meantime import luxury cars for ministers and their ministries and go gallivanting overseas.

    Nimal Monday, 16 July 2018 06:52 AM

    He is being quite Frank and not hiding the reality.

    Dias Monday, 16 July 2018 08:05 AM

    Investors have no confidence in this Government and its ever changing they wait and see!Individuals have no confidence in this Government so they will save what they have and only spend on essentials.....This is your fault.....both you and the Grama Sevaka's

    LP Monday, 16 July 2018 08:13 AM

    You will pump suffering

    Dallas Monday, 16 July 2018 08:25 AM

    Money circulation is down because interest rates are higher(Central bank rates).From 6.25% in 2014 it has jumped to 10% by 2017.No wonder people do not invest when savings accounts give them up to 9%.Number of people building or buying houses will be less and investment by companies will be less too, why money is now more expensive.You

    suresh Monday, 16 July 2018 08:58 AM

    Not to mention the exchange rate sky rocketing

    Chrishan Monday, 16 July 2018 08:30 AM

    Good Move sir, however can you show specific measurable timebound objectives? Eg 1050 tanks in 9 distrcis before the next maha season starts (date) with an expected productivity and employment increase of what ever the number? Lot of solid visionary level talk alone is not good enough at the end of 3 years.

    Jude Monday, 16 July 2018 08:58 AM

    Well, there's no Middle Class in SL anymore!!! There was a time lots of people could afford to buy big ticket items!! Like TVs, washing machines etc.NOW people cant buy any consumer goods or consumer durables !!!?? Most people don't have enough money to buy food !!! Let me put this way, in SL now you get the Super Rich, then the Ultra Rich and Rich and then you get Poor and the Dirt Poor!!!??

    Doug Monday, 16 July 2018 09:03 AM

    rather than pumping money look at where the real problem is. If the so called paddy marketing board did 50% of its job, we would not be in a mess.

    Dhammika Monday, 16 July 2018 09:16 AM

    MONEY CIRCULATION IS DOWN because people DONT have money , The RICH are getting RICHER while the POOR are getting POORER . Simple as that .

    Chari Monday, 16 July 2018 09:23 AM

    Money Circulation has declined as a result of high taxes and the high cost of living. Must reduce these to induce growth what the U.S did in the past year.

    Unchikun Monday, 16 July 2018 09:26 AM

    "There is a hole in the (money) bucket, dear Ranil, a hole". I think the hole is Colombo, Fort and the plumber is now in Singapore. Get this plumber to plug the hose.

    lkboy Monday, 16 July 2018 09:27 AM

    Why can't he understand that money circulation has decreased in urban areas also!

    Samson Monday, 16 July 2018 09:30 AM

    You will have sufficient funds if you reduce the Ministries to suit the population and do away with wasteful expenditure in providing unnecessary security and benefits to politicians including vehicle permits.

    Ijazahmed Monday, 16 July 2018 09:37 AM

    Oh great !!! he might as well could have said... We first focused on ourselves got down super fancy cars for HE, Myself and the entire cabinet, increased the MP's salaries, increased the value of duty free permits of all Govt. workers and then after almost four years realized some people have been missed out. After a lot of brain storming we found out that the general public has been left out.. (There's only one more year for the election oh how did we forget them... oh how did we...)

    J A Nihal peiris Monday, 16 July 2018 09:50 AM

    Money Circulation Down because all the money USD has stealed by RW /MR Regimes and directly taken out of the country

    Doratupala Monday, 16 July 2018 10:00 AM

    Simple! PRINT some!

    Coconut Republic Monday, 16 July 2018 10:02 AM

    Ajay, good thought. However , NO to pradeshya sabah too. 90% plus are big time thief's too.In general, all good efforts must be supported by having a weekly basis updates on village by village development's. Keep going Mr Prime minister!

    Dickie bird Monday, 16 July 2018 10:17 AM

    Utter talk shop. Voted for him with a lot of hope but he has ended up as an utter failure and a thief who got his friend to dip his hands into the government coffers.leading upto the elections in the past it was Volkswagen, tyre factories 1m jobs........... ect...Now its Gamperaliya, stupid nonsense.if he has watched the Gamperaliya film he would know what gamperaliya was depicted then.Masses are no more fools or could be fooled other than some thing for his supporters and opportunists to talk.LATS HAVE A 'BANKU' PERALIYA FIRST.

    Sunil Monday, 16 July 2018 02:16 PM

    You will realize what a real "peraliya" is at the next elections, whatever they may be.

    Sambo Monday, 16 July 2018 02:19 PM

    This means the people have become beggars in very simple language.

    iemerald Monday, 16 July 2018 03:39 PM


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