The Hon. (Dr.) Anil Jayantha

¶ 01 Mr. Speaker, there is no such contradiction. These are not two different Answers; it is one and the same, and this has nothing to do with the EPF matter.

¶ 02 Let me also clarify, to prevent the public from being misled about this 5 per cent inflation. This does not mean we will keep inflation fixed at five per cent. Inflation is the rate at which the general price level increases. High inflation is when it moves to a level we cannot control, and that is what harms the economy. There will always be some inflation. Accordingly, a flexible inflation target is set to manage it. That target is for three years. When setting that target for three years, several macroeconomic factors are considered. There is no universal rule that inflation should be one, two or three per cent. It varies. Therefore, having such a target within a framework is appropriate. That framework is reviewed every three years. So, if, as you suggest, five is too high under global conditions, we can consider that at the next review.

¶ 03 Right now, our duty is to move forward within the framework and not exceed the five if that is within it. That is our responsibility, and it has not been breached. Within our year, it is proceeding well within the framework.

¶ 04 Next, on debt: the data presented there are incorrect. When presenting the total debt figure, it is stated as 309. However, the amount of foreign currency debt has not increased; it has remained broadly stable. Therefore, the way that information has been presented is misleading.