President hits at inflation risks as Rs. 500 bn cyclone rebuilding begins!
Colombo, Dec. 19 (Daily Mirror) – The government faces the challenge of preventing a surge in inflation as the Rs. 500 billion allocated for rebuilding the country after Cyclone Ditwah begins to circulate in the economy, President Anura Kumara Dissanayake told Parliament today.
Winding up the debate on the supplementary estimate to allocate Rs. 500 billion for reconstruction and rehabilitation, the President warned that increased demand for goods and services during the rebuilding phase could place upward pressure on prices.
“When reconstruction begins, demand for various goods and services will rise, and this could eventually push inflation upward. The government will need to act with diligence to prevent such a situation,” the President said.
He stressed that a strong, production-driven approach would be essential to offset inflationary pressures. “We will have to focus on boosting production to prevent an increase in the inflation rate,” he added.
The President reiterated that the cyclone struck at a time when the economy was beginning to regain stability. “At the time of the disaster, the Treasury held Rs. 1.2 trillion,” he noted.
President Dissanayake also announced a new relief and recovery package for sectors affected by the disaster. He said boats would be provided to affected fisherfolk, adding that those who lost boats would be required to submit their insurance claims to fisheries authorities. The authorities would then cover the remaining cost and provide replacement vessels. The same assistance scheme will apply to inland fishermen.
Shop owners whose premises were destroyed or damaged will be eligible to receive compensation of up to Rs. 5 million, following an assessment of losses. Poultry farmers and other affected producers will also be compensated.
“These relief packages are being introduced to ensure the revival of industries that were shattered by the disaster,” the President said.
He added that rebuilding projects would be entrusted to Sri Lankan expatriates and non-governmental organisations willing to finance and support reconstruction efforts.
