Sri Lanka News Updates with Discussions

APRC proposals in mess due to the President`s meddling

(Lanka-e-News, 2008 Jan 15, 10.15 AM) The ethnic minority parties and the leftists that represented the All Party Representative Committee (APRC) for a long time in search of a solution to the ethnic problem are discontent due to the last minute request of the President to base the proposals on a document submitted by him.

The President submitted a document to the APRC Chairman Thissa Vitharana on January 09, proposing to strengthen Provincial Councils based on the 13th amendment to the constitution.

A representative of the APRC said to Lanka-e-News that jeopardized the nearly 90% agreements of the APRC representatives that were achieved through 67 meetings.

A SLFP representative of the APRC said that Sri Lanka Muslim Congress and the Ceylon Workers` Congress had not agreed to the President`s `guidelines` first. The APRC representatives last week agreed to produce a devolution package in the perimeters of the 13th amendment. However, there was likelihood the minority parties to produce a separate proposal.

JHU representative has proposed to submit only the report pertaining to the 13th amendment since the final report needed to be further discussed.


Rajapakse`s first budget pledge dead in 13 days

(Lanka-e-News, 2008 Jan 15, 10.15 AM) The first of the promises of the President Mahinda Rajapakse`s 2008 budget proposals, not to increase petrol and diesel prices, was broken before two weeks time the budget was passed.

The price of petrol was increased by Rs. 10, diesl by Rs. five and kerosene by two rupees since yesterday (13) midnight. The new prices of a litre of petrol is Rs. 127, diesel - Rs. 80 and kerosene Rs. 70.

These are the Hon. President Mahinda Rajapakse`s words:

`Honourable Speaker, the price of crude oil has now exceeded US$ 95 per barrel. As such, the need to adjust fuel prices has surfaced again. However, since any revision of diesel and kerosene price would cause hardship to the public, I am considering to refrain from revising such prices at least as a temporary measure. In order to maintain diesel and kerosene prices, on which VAT is already exempted, at present levels through a cross subsidy mechanism, I propose that the 15 percent VAT on petrol be reduced to 5 per cent from January 2008. If this measure becomes insufficient in the context of changing international crude oil prices, I propose to remove the Excise Duty on Petrol as well. In order to recoup the revenue forgone, I propose to change taxes on liquor, motor vehicles and non essential imports as well as to change only the price of petrol, in an appropriate manner. If international price of crude oil remains continuously high, we have no choice but to face the hard reality. However, the price of kerosene will be maintained at the current level and provision has already been made to extend a Rs. 100/ kerosene subsidy per month to Samurdhi and other low income households who do not have electricity. It is proposed to give limited quantity of petrol at a discounted price to three wheelers with meters and also to introduce a loan scheme to enable the purchase of such meters.