Cabinet hails Rs. 299 b relief package amidst challenges; says economic revival progressing

Wednesday, 5 January 2022 00:19 - - {{hitsCtrl.values.hits}}

The Cabinet of Ministers has hailed the Rs. 299 billion worth relief package to the people it approved on Monday on the recommendations of President Gotabaya Rajapaksa, Prime Minister Mahinda Rajapaksa and Finance Minister Basil Rajapaksa.

“We must thank the President, the Prime Minister and Finance Minister for offering a Rs. 229 billion relief package for people at a time when such a stimulus is very challenging,” Cabinet Co-Spokesman and Media Minister Dullas Alahapperuma told the post-Cabinet meeting media briefing yesterday.

He said that the relief package was a humane response on the part of the Government to redress people from the on-going economic hardships caused by the unprecedented COVID pandemic.

Cabinet Co-Spokesman and Energy Minister Udaya Gammanpila said that the pandemic has fuelled inflation all over the world owing to widespread disruptions, including in the supply chain.

"Being an import-dependent country, global price spikes are beyond the Government’s control. When we want to import, we can’t because there are shortages of products everywhere. If there is ample supply, then again we can’t import because of the low foreign reserves,” Gammanpila explained.

He said it was in these contexts as well as challenges in boosting local supply that Monday's announcement of Rs. 299 billion relief package must be viewed as a Government intervention to ease the burden on the people.

Whilst acknowledging that the cash relief was only a temporary measure and the permanent solution was boosting the local agriculture and manufacturing economy, Cabinet Co-Spokesman and Plantation Minister Dr. Ramesh Pathirana said the Budget 2022 unveiled a host of initiatives for higher economic revival post-COVID.

“Economic revival is the utmost priority for the Government,” chipped in Alahapperuma, adding that the Cabinet had extensive discussion on the economy’s performance as well as the way forward.

With regard to the foreign exchange and reserves crisis, he said that Central Bank Governor Nivard Cabraal and Treasury Secretary S.R. Attygalle will be invited to the next week’s Cabinet meeting for a thorough update.