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More price hikes as CoL soars
Consumers already hit by increase in fuel and electricity costs will have to now brace themselves for price spirals in a variety of essential food items. The latest Government move, to protect the local farmer, is to introduce a tax of ten rupees on a kilo of imported onions. This comes on a request made by Agriculture Minister Anura Dissanayake. This is expected to increase the price of a kilo of imported onions from anything between Rs 10 and Rs 15.

Already the prices of other food items have been raised. Among them are dhal, sugar, rice, coconut, bread, coconut oil and milk powder. JVP Minister Dissanayake discussed the introduction of the tax on onions with Treasury Secretary P.B. Jayasundera. JVP General Secretary Tilvin Silva told The Sunday Times none of the price increases, except oil products, had been initiated by the Government.

He said the private traders were responsible for all other increases since they sold goods at any price they fancied. "Now we are working to re-acquire Sathosa (CWE) and also enact laws that could help control this kind of price hikes," he said. His comments came as Treasury Secretary Jayasundera warned of a further "inevitable increase" in fuel prices. He, however, was unable to say by how much more the prices would be increased.

The move came as Trade and Commerce Minister Jeyaraj Fernandopulle declared he was planning to import rice in a bid to keep the local prices low. He said three different grades of rice would be imported for the poor, middle class and the rich. Mr. Fernandopulle told The Sunday Times that the imported white rice would be sold at Rs. 28 a kilo, Samba at Rs. 35 and Basmathi Rs. 40 to 45.

On Friday dhal prices shot up by Rs. 10 a kilo and Mr. Fernandopulle attributed the increase to world market hikes. The electricity tariff due to go up from November 1 is likely to affect many of the average consumers despite government claims that it would not affect the majority of the consumers as the rates would be increased for those who use beyond 90 units.

But the JVP affiliated Lanka Widuli Sevaka Sangamaya's General Secretary Ranjan Jayalal said that despite claims by the government that the majority of the domestic users would not be affected, most of the domestic users consume more than 90 units and would have to pay more.

CEB General Manager Ranjith Fonseka said the board was currently incurring a loss of Rs. 25 million a day mainly due to the additional cost for fuel to generate thermal power and therefore it was forced to increase rates.

Power and Energy Minister Susil Premajayantha said failure to launch the construction of the Upper Kotmale power project, Norochcholai coal power project and increased cost for the production of thermal power were the main reasons for the increase in tariffs.

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