WE ARE READY TO FACE INFLATIONARY PRESSURES: PRESIDENT

Says increased demand for goods and services during rebuilding could push prices upward

- By YOHAN PERERA AND AJITH SIRIWARDANA

The government faces the challenge of preventing a surge in inflation as Rs. 500 billion allocated for rebuilding the country after Cyclone Ditwah begins circulating in the economy, President Anura Kumara Dissanayake told Parliament yesterday.

Winding up the debate on the supplementary estimate to allocate Rs. 500 billion for reconstruction and rehabilitation, the President warned that increased demand for goods and services during the rebuilding phase could exert upward pressure on prices.