The government yesterday claimed that the cost of living had not risen, but there has been a commendable growth rate of 6.8 per cent.

Media Minster Anura Priyadharshana Yapa addressing the weekly Cabinet press briefing at the Information Department said that the UNP was talking nonsense by claiming that the cost of living has risen.

"Mr. S. B. Dissanayake this week said that there has been a sharp rise in inflation. But, he did not take into account the rise in world oil prices and the war that the government was fighting against the LTTE."

In 2007,the economy grew by 6.8 per cent, per capita income rose to US$ 1617 and the annual average rate of an employment reached its lowest ever recorded level of 6 per cent, he observed.

S. B. Dissanayake told a news conference this week that the government continues its policy of blatant lies while inflation has skyrocketed to 28 %.

"The unprecedented rise in inflation cannot be blamed on oil prices or the war, though the government was citing them as an excuse. How come other Asian economies have kept inflation at 11% or less, if the reason for its rise in Sri Lanka is due to world market commodity prices? Thailand has only a 4% inflation rate while a poor country such as Bangladesh has managed to keep inflation at 11%," Dissanayake queried.

Dissanayake said that the government’s answer to the rising cost of living, is to print money and also borrow at high rates internationally, but this is akin to jumping from the frying pan into the fire.