Treasury reserves must fund public relief - Shanakiyan Rasamanickam

Opposition MP Shanakiyan Rasamanickam says the government must explain why citizens face relentless cost of living increases while the Treasury holds hundreds of billions of rupees in reserve.

Speaking during the parliamentary sitting on 6 November, he urged immediate relief measures for ordinary citizens.

Rasamanickam highlighted that headline inflation climbed to 8.3 per cent in October while food inflation touched 8.8 per cent.

Following a recent price hike on 2 November, staple bakery items such as bread surged by Rs. 5, compounding the pressure on households already struggling under cumulative electricity tariff increases of over 28 per cent implemented since April.

He challenged assertions made by Deputy Minister Kaushalya Ariyarathne that fuel was being retailed below import costs, pointing out that diesel and petrol were being brought into the country at Rs. 307 and Rs. 322 per litre respectively.

Citing official figures from the Ministry of Finance Mid-Year Fiscal Position Report for 2026, he revealed that the Treasury held a cash balance of Rs. 690.3 billion at the end of June.

He argued that it was illogical to impose additional fuel taxes while holding such liquidity, demanding that available public funds be deployed directly to relieve economic strain.

He drew attention to the Rs. 57 billion spent on energy subsidies in the first half of the year, noting that Rs. 41 billion went to the Ceylon Petroleum Corporation and Rs. 15 billion supported electricity tariffs.

The CPC subsequently recorded a net profit of Rs. 29.2 billion, prompting the lawmaker to question whether state corporations exist to turn a profit or serve the public, particularly after taxpayers settled Rs. 750 million in state bank loans for the entity in the previous year.

Demanding complete transparency from the government, Rasamanickam submitted a series of formal questions regarding the total treasury funds spent on fuel subsidies from January to date, the monthly relief expenditure, and precise sales volumes across petrol and diesel categories.

He called on the government to clarify whether the Rs. 41 billion allocation to the CPC was fully passed on to consumers and whether fuel relief would extend beyond December 31, 2026.

Prioritising support for public transport operators, agricultural workers, and the fishing sector, he warned that rising diesel costs could double land cultivation expenses for farmers ahead of the upcoming Maha season.