The capital cost of government grants and subsidies are not accounted for in pricing decisions and consumers may have to contend with higher prices if the private sector participates in the provision of water unless conducive terms are offered to the private sector. However analysts also concede that the burden of subsidised water is currently borne by the tax payer. The JVP's demonstrations outside the World Bank's office expressed disapproval at what they considered were attempts by the bank to pressurize the government to privatise water resources. This followed hot on the heals of media publicity given to an impending Water Bill which speaks of water taxes and permits being required by water users including farmers. The legal draftsman is drafting a National Water Resources Act setting the framework for a Water Resources Authority to protect, conserve and manage water.
Moves are also underway to set up a water sector regulator.
Edible oil surcharge hard to digest Confectioners, bakers and food processors are finding the current surcharge on edible oil imports hard to digest. The government hoped to achieve this by increasing the price of imported edible oil to an extent that the bakery industry would shift to using locally produced edible oils to keep their prices stable. The three month surcharge has now been extended by another three months and worried importers feel that the surcharge could be imposed indefinitely, culminating in a slow and painful death for the industry. Importers claim that a considerable quantity of this edible oil imported at a lower duty finds its way into the market at ridiculously low prices compared to the duty they are required to cough up which makes fair competition impossible. Some registered manufacturers import from the same Malaysian company that the import trade buys from at a much higher duty.