April 07, Colombo (LNW): President Anura Kumara Dissanayake appeared in Parliament today (07) to present a wide-ranging economic relief proposal intended to assist communities affected by the ongoing crisis in the Middle East.
He is presently addressing the House, outlining the government’s response to mounting global and domestic pressures.
During his speech, the President detailed plans to expand agricultural support, stating that the fertiliser subsidy for the forthcoming Yala season will be increased to Rs. 30,000 per hectare. Subsidies for other crops are also set to rise, moving from Rs. 15,000 to Rs. 18,000 per hectare, in a bid to ease the burden on farmers and sustain production.
He also confirmed revisions to the Aswesuma allowance scheme. Under the updated structure, the Rs. 17,500 payment will be raised to Rs. 25,000, while beneficiaries currently receiving Rs. 10,000 will see their allowance increased to Rs. 15,000. Additionally, the transition allowance provided to those exiting the programme will be enhanced by Rs. 2,500.
The President went on to highlight that multiple sectors of the economy have been negatively affected by prevailing global wartime conditions, noting that the government has been closely monitoring developments and acting with caution. Particular concern has been directed towards the fuel and energy sectors, where price volatility continues to have a direct impact on everyday life. He observed that, based on current market trends, the cost of a litre of diesel has surpassed Rs. 600.
Looking ahead, he announced plans to reintroduce a fuel pricing mechanism that reflects actual costs, expected to take effect on or around 1 May. Prices will be determined using data from the previous month. As part of the next revision, the government intends to offer a subsidy of up to Rs. 100 per litre of diesel and up to Rs. 20 per litre of petrol.
The President stated that this initiative is projected to require approximately Rs. 20 billion per month and has been designed as a three-month measure, with benefits targeted towards identified groups. However, he clarified that due to limitations in data availability, prices of Super Diesel and Super Petrol will remain aligned with prevailing market rates.
He further explained that the state will absorb a cost of Rs. 100 per litre specifically for regular diesel, bringing the estimated total expenditure for the three-month period to Rs. 60 billion.
Addressing the needs of the fisheries sector, the President announced a dedicated relief component. One-day fishing vessels will receive a fuel subsidy of Rs. 50 per litre over a three-month period, calculated on a usage of 25 litres per day for up to 25 days each month. In addition, multi-day fishing vessels will be granted a one-off allowance of Rs. 150,000 during the same three-month timeframe, as part of efforts to support livelihoods within the industry.