Central Bank Governor Ajith Nivard Cabraal says the main reason behind the fuel increase was, in order to reduce the demand for fuel.
“Thousands people ride on motorcycles will go by buses .Some may restrict travel. Several people go on a journey together. People will find the solution for reduce the reduction.” The Governor of the Central Bank said.
He was speaking on Hiru TV yesterday.
The Governor of the Central Bank said that the decision was taken after considering a number of factors, including the stability of the Ceylon Petroleum Corporation and the protection of the country’s dollar reserves.
“On the one hand, the decision to increase prices was made to reduce demand. When demand decreases, the amount of oil available to import decreases. One limits one’s travels. Or two or three go on the same trip. You can go by bus without using a thousand motorcycles.
It is important if we can reduce our consumption by increasing prices. Our oil prices have increased by hundreds of millions of dollars a month. It costs $ 400 million a month. If we can reduce it to 250 we can manage this problem to a great extent.
The Governor of the Central Bank questioned what would happen to the country if it acknowledged the increase in the cost of living but concealed the real situation and as a country continued to increase its debt to a point where it could not be repaid.
