Chief of Staff of the Prime Minister Sagala Ratnayake told a meeting with editors and media heads on June 29 that first shipment of gas will arrive in Sri Lanka on Wednesday (6).
Ratnayake said: “there is no issue with regard to the supply of gas. The Litro Gas will procure 100,000 MT of gas for the next four months and that a shipment of 33,000 MT will arrive in July. Shipments are due on July 6, 10, 16, 19, 21, and 31 under World Bank assistance”.
He said that the Government has secured a petrol shipment that is due to arrive in the country on July 22.
Ratnayake said that discussions and attempts were also under-way to secure more stocks of fuel prior to the arrival of the expected shipment on July 22.
He said that a shipment of diesel is expected in early July, while the CPC is trying to source a petrol shipment by July 10, while a shipment is expected from India by July 22.
Ratnayake said that currently the CPC has 11,000 MT of diesel, 5,000 MT of petrol, 30,000 MT of furnace oil, and 800 MT of jet fuel.
He said that a shipment of 38,000 MT of diesel will arrive between July 11 and 15.
However, he added that the diesel stocks in the country will only be available for essential services until the new shipment arrives.
Prime Minister Ranil Wickremesinghe said that inflation has shot up and the Government will have to stop printing money next year.
He said that people find it difficult to live today due to the soaring cost of living as a result of printing money.
He said that expatriates still use the ‘Undial’ system to remit money to Sri Lanka deviating from official transactions through banks.
Wickremesinghe will also present an interim budget at the end of July 2022 offering over Rs. 200 billion as incentives to low income families as well as the small and medium sector.
The Census Department announced that the year on year GDP growth rate for the first quarter of 2022 has been estimated as negative 1.6 percent which indicated a considerable contraction of the economy compared to the first quarter of 2021. “We expect this to continue for some time before settling down”, said head of Economic Stabilisation Committee and former Treasury Secretary Dr. R.H.S. Samaratunga.
Inflation too increased from last midyear and now it’s at around 45 percent and food inflation at over 57 percent.
In addition our reserves too are not in a healthy position at US$ 1.5 million (obtained through a Chinese Swap) and these negative sentiments will continue for some time and we hope to provide some concession to them via the interim budget in August.
In a bid to increase Government revenue the pre 2019 tax structure would be reintroduced. He said that in 2021 the Government revenue was at 8.7 percent as against Government expenditure which has increased to 20 percent. “It is to bridge this gap that the Government wants to go back to the earlier tax regime and we hope productive results in this regard will start from next August.”
The Government is also closely looking at some of the bleeding public institutions and will closely look at restructuring them.
Commenting on the ongoing IMF negotiations, he said that Sri Lanka is on course to offer a sustainable debt repayment scheme to the IMF and global financial advisers and legal firms have been appointed to oversee this aspect.
Dr. Samaratunge said that Sri Lanka needs around US$ 550 million monthly to meet the importing of fuel and in additional dollars are needed to import LPG and fertiliser along with essential medicine.
“As the Indian credit line that was offered is nearing completion, the Government is talking to international donor agencies like the World Bank, Asian Development Bank and the Food and Agriculture Organization.”
These negations have been successful and I am confident that the Government would be able to meet the entire demand for LPG gas very soon
“I must say that Sri Lanka has been able to import fertiliser from India to meet most of the demand of the current paddy season and a further fertiliser for the next season is also due from India.”
“The Government is giving priority to this sector as we want to ensure uninterrupted food supply to the nation and several other steps are taken with the Ministry of Agriculture in this regard.”