• Absence of a mechanism in the country to absorb price shocks in the world market also led to the current crisis

By Kelum Bandara 

Former Energy Minister Udaya Gammanpila said the unprecedented fuel price hike imposed by the government could not be solely attributed to the spikes in the world market because numerous other matters including the mismanagement of foreign exchange, failure to limit unnecessary imports and maintain a viable interest rate in keeping with inflation affected it.   

  Making his remarks to the press, Gammanpila said the absence of a mechanism in the country to absorb price shocks in the world market also led to the current crisis.   

Gammanpila was sacked from his portfolio recently. He said he not only proposed a mechanism for fuel price stabilization but also did extensive research into it.   

“Had there been such a mechanism, the prices would not have gone up like this. The government collects Rs.750 million a day in terms of various taxes on fuel. The government should have curtailed its unnecessary expenses instead of burdening people like this,” he said.