The

government has spent over Rs. 50 billon to procure arms and ammunition for the present military exercise during this year

The Deputy Finance Minister said that some elements insisted on taking forward the military push and giving economic concessions to the people at the same time without looking at the problems realistically. “We cannot give immediate relief as these expenses exist on account of the procurement of military equipment,” he said.

Mr. Siyambalapitiya was speaking during an adjournment motion

moved by JVP MP Piyasiri Wijenayake demanding that a monthly pay hike of Rs. 3000 be given to public servants and that steps be taken to improve the living conditions of private sector employees and estate workers.

The Deputy Finance Minister said that some elements insisted on taking forward the military push and giving economic concessions to the people at the same time without looking at the problems realistically.

“We cannot give immediate relief as these expenses exist on account of the procurement of military equipment,” he said.

Commenting on the prices of essential items, he said that there were some external factors beyond the government’s control that affected prices.

Mr. Siyambalapitiya pointed out that wheat flour cost only 184.6 US dollars a tonne in 2003, but cost 223.5 US dollars this year.“The price of sugar has increased from 252.4 US dollars a tonne to 343.5 US dollars during this period and rice from 227.8 US dollars to 426. 9 US dollars,” he said.

He added that the government had recruited around 250,000 persons to the public service since 2004, and the payment of salaries to the entire cadre had also increased drastically.

JVP MP Wijenayake who brought the motion, requested the ruling coalition to take immediate steps to increase the salaries of public servants without compelling them to take trade union action on a large scale.

He said workers were undergoing immense hardship on account of the escalating cost of essential items.

“Now, the price of coconut oil has increased by 79.1 percent and sugar by 41. 68 percent,” he said.

He said that the price of a kilo of some varieties of dry- fish had increased from Rs.366 to Rs.526.

“Prices of stationery items, including exercise books and erasers used by school children, have also soared. People have to meet all these expenses with their monthly income,” he said.

JVP MP Wasantha Samarasinghe asked what steps would be taken by the government increase the wages of estate workers and private sector employees who accounted for 80 percent of the GDP.

Mr. Samarasinghe said that estate workers now found it difficult to purchase a bottle of kerosene oil and a kilo of wheat flour with one day’s pay.

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