The government has decided to remove all taxes imposed on essential food items and medicines in a move to provide concessions to the general public.
Meanwhile, a Rs.5,000 monthly allowance will be given to all public sector workers and pensioners from this month.
Minister of Finance Basil Rajapaksa made the announcement this evening introducing a special economic package considering the current economic situation in the country.
According to Finance Minister Basil Rajapaksa, the economic stimulus package introduced today is worth Rs. 229 billion.
The Finance Minister said the Cabinet of Ministers has also agreed to grant a Rs.5,000 monthly allowance to all disabled armed forces personnel.
Furthermore, in addition to Rs.3,500, Samurdhi beneficiaries will receive an additional Rs.1,000 monthly from this month.
Minister Basil Rajapaksa also noted that the Minister of Labour has been advised to discuss with relevant parties to increase the salaries of private sector workers as well.
Meanwhile, in a bid to improve the Agriculture industry, the government has decided to grant Rs.5,000 for those growing crops in home gardens on lands less than 20 perches and an allowance of Rs.10,000 for lands between 20 perches and an acre.
The Minister of Finance further stated that steps will be taken to provide 15 kilograms of wheat flour per month to each family within the plantation areas at Rs. 80 per kilogram.
The government has also decided to set a price of Rs. 75 per kilogram of paddy in the future in view of the possible loss of harvest due to the shortage of fertilizer for paddy farmers.
At present, a kilogram of paddy is paid at Rs. 50 and an additional Rs. 25 per kilogram will enable farmers to cover the loss caused by the crop shortage.
The Minister of Finance also emphasized that in the face of the increase in the price of paddy, the consumer will not be burdened in any way.
He further stated that the Cabinet has decided to avoid imposing any new taxes.
Meanwhile, Minister Basil Rajapaksa claimed that the government has saved Rs. 53 billion in the last six months by reducing expenditure.
The Minister of Finance also said that a decision was taken to appoint separate Ministers during the Cabinet meeting yesterday to hold discussions with nations and parties providing aid to Sri Lanka including donor agencies such as the International Monetary Fund, the World Bank and the Asian Development Bank.
He noted Ministers will be appointed to discuss with donor countries such as China, India, Japan, the United States and the European Union.
Minister Basil Rajapaksa noted that they aim to reduce expenditure within state bodies while increasing domestic production to overcome the current economic crisis.