Dec 31, Colombo: Sri Lanka government in an economic stimulus package has given several concessions to the industrial sector to ensure that there would not be any loss of employment.

Minister of Export Development and International Trade G.L. Peiris said the incentives given to the industrial sector include the removal of the 15% electricity surcharge and a 5% allowance on the value of exports if the industrialist was able to maintain former production levels.

The government announced the relief measures yesterday night following a special cabinet meeting called by the President Mahinda Rajapaksa.

The stimulus package will cost the government Rs. 16 billion but the 2009 Budget deficit target of 6.5 percent of GDP will be kept intact with a reduction in expenses of the government, including that of the President, Premier, Cabinet Ministers as well as MPs.

President Rajapaksa said the government subsidized diesel and kerosene using the profits collected from the sale of petrol and that the government always act in the larger interests of the public and the overall economic situation in the country.

Minister Peiris said the government must consider whether the country would benefit more from the price reduction of petrol or diesel.

“We have to confront challenges, if the government does not reduce the price of petrol. It is natural that any government faces many challenges when serving the people. Buses, trains and other public vehicles run not on petrol but on diesel. If the government is to give relief to the people it is through the reduction of diesel prices," he said.