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Message: <blockquote data-quote="Nalin25" data-source="post: 8288722" data-attributes="member: 296249">Just as much as we appreciate MR for defeating the LTTE, we need to understand that he cannot defeat the inflation, as much we want him to. I hope the following explanation would educate some of you, who blame the high inflation on the government. SL food, petrol prices do not reflect the world prices because they are heavily subsidized by the government. Australia is a wheat producing country. A loaf of bread can be purchased in Australia for anything above $1 (Rs. 100). In SL back in 1994 it was Rs. 3 but within 16 years it rose to Rs. 45 which is a 1400% increase. But if the price instantly went up by 1400% from 2009 - 2010, then people would no doubt riot against the government. So the government is compelled to use those loans from the world bank to subsidize the price of bread. But when the world bank funds are used to subsidize food and petrol what happens is our construction projects get delayed. This is why we have very bad roads for e.g.This is why every government increase the prices every year, until they reflect the world prices and release those subsidies to build harbors, new roads etc.. which would bring income to the country.  So don't be surprised if the price of bread goes up to Rs. 50 by the end of this year. Same with bus fares because Diesel is subsidized. This is why politics is a delicate game which try to balance the happiness of the people with low prices while having to dance to the tune of the world bank.</blockquote>

Verification: Nawa warak dahaya keeyada? (Namaya wadi kireema dahaya)

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