He told Parliament that inflation was recorded as 3.4 percent last week and that the inflation will exceed 5 percent with the increase of 2.5 percent.

The Minister said 138 items had been exempted from VAT and that 97 items out of that will be subjected to VAT under the new Amendment.

He noted that VAT will be imposed on both petrol and diesel while the VAT exemption will continue on some items such as vegetables, fruits, rice flour and medicine.