Mihin Air,which was launched with the peoples money has been grounded after recording a Rs.3,200 million loss in just one year,the UNP said yesterday.

Colombo District UNP MP,Ravi Karunanayake addressing a news conference in Colombo said that Mihin Air was propped up by monies doled out by the EPF,Treasury and other State institutions,but it has failed miserably just like all ventures started by the Mahinda Rajapakse Government.

"It is due to the Governments incompetence that the cost of living has skyrocketed and inflation is howering around a record 30 %.The Mahinda Chintana way of recovering losses suffered due to imprudent investments,is to jack up prices.

The government,he said intends increasing the prices of essential items including kerosene oil further,but had put it on hold until after the May 10,Eastern Provincial Council Election.

The farmer,we are told is being provided concessionary loans at eight per cent interest.If this is really the case then a kilogram of rice should be available at Rs 40 and not Rs 100,Karunanayake observed.