More troubles ahead: Harsha

Demand for US dollars will increase when LCs issued for vehicles reach the market

Prices are bound to increase further after slashing of the fuel subsidy

Plan by the government to remove export cess will adversely affect local producers

By Yohan Perera 

 Member of the Samagi Jana Balawegaya (SJB) and chairman of the parliamentary Committee on Public Finance (COPF) Harsha de Silva yesterday predicted more trouble when it comes to the Sri Lankan economy.  

“The Demand for US dollars will increase soon when the Letters of credit issued for vehicles reach the market. I rushed to Parliament just after my recent foreign visit and stressed the need for building market confidence. There is no confidence in the market currently. This is why importers want dollars for their rupees soon while exporters prefer to keep their dollar earnings without converting them to rupees. This is why I stressed the need for building market confidence. Institutions such as the Central Bank could build market confidence by making certain changes,” the MP told media. He said interest rates should have been increased before.   He also said fuel prices are bound to increase further after the government goes ahead with the slashing of the fuel subsidy. “One need not ask as to whether fuel prices would increase as it will,” he said.

Furthermore he said the plan by the government to remove export cess will adversely affect local producers.   

“It is possible to overcome these impending difficulties but it has be dealt with diligence,” he stressed. Referring to the sending back the report on the $ 2.5 theft he said it was sent back as it has been sent by the finance ministry for his personal reference. ‘”It is not proper to send a document for only personal reference as I have to discuss it with other members of COPF. We have given four weeks to the finance ministry to send in a report to the reference of all members of COPF. We expect a proper report to be submitted to Parliament before long,” he said.