Opposition MP Dr. Harsha de Silva says that with surplus funds currently available in the Treasury, the government should avoid immediately hiking fuel prices in response to sudden global shocks.
Speaking during a televised interview, he argued that instead of passing the burden directly onto households and businesses, the government could temporarily reduce various taxes on fuel to cushion the impact.
“This is prudent, far‑sighted leadership, easing the shock when you can afford to, not adding to people’s burdens during recovery,” he stated.
His remarks come amid concerns that rising global energy prices could intensify cost‑of‑living pressures for Sri Lankan families and businesses already navigating economic recovery.
“The price formula can be used. I am not saying don’t use the price formula. But we have other tools and methods to reduce the shock felt by the people. This economy must be reformed. That is not where the mess is. One must think more deeply, as there are industries in our country. There are SME’s in our country, and there are average citizens in our country,” he said.
MP de Silva pointed out that the poverty level has risen from 12% to 25% at present, stating, “If they say that in no way they can provide relief to the people within this situation, that is ignorance.”
“Within this pricing formula, there are two things we can do. One is that there is a Rs. 118 tax, and secondly, Value Added Tax is charged on top of it. VAT is charged on top of the crude oil price, the transport cost, and the administration charges. Therefore, we can adjust this in the short-term. This is a shock. This is a temporary disruption. The answer given to a temporary disruption and a long-term trend are two different things. I advise that they use the surplus funds in the Treasury to absorb the shock,” he explained. (Newswire)
