UPFA announces domestic fuel price hike

[TamilNet, Wednesday, 04 May 2005, 16:03 GMT]
The United Peoples Freedom Alliance (UPFA) government increased domestic fuel prices, petrol by six rupees, and diesel by four rupees and kerosene by three rupees, the increase coming into effect from midnight Wednesday, Mr.Jaliya Medagama, Chairman of the Ceylon Petroleum Corporation (CPC) said.

The price increase is aimed at convincing multinational lending institutions such as the International Monetary Fund (IMF) and the World Bank (WB) that the government is serious about reform, and taking steps to reduce consumption and ease pressure on the balance of payments, according to Finance Ministry sources.

Government sources said two weeks ago during talks with the IMF officials in Washington, Sri Lankan government promised to lift the fuel subsidy.