Colombo - The Sri Lankan government has offered a relief package to the public amidst pressure from opposition parties to reduce fuel prices and lower the cost of living.

The government has reduced fuel and gas prices with immediate effect and offered incentives for garment, tea and rubber exporters as well as the tourism industry as part of the economic measures.

Sri Lanka's two main opposition parties - the United National Party and the Marxist JVP - have been carrying out a strong campaign to reduce fuel prices after the Supreme Court ruled two weeks ago to lower petrol prices by 22 rupees per litre (20 US cents). The government ignored the court ruling and instead announced its own price formula.

Accordingly the price of petrol has been reduced by 2 rupees (less than 2 US cents) per litre and diesel and kerosene by 10 rupees per litre.

For the garment production sector, hotel sector, rubber and leather production sector a 15 per cent surcharge on electricity has been lifted.

The relief package is expected to cost the government 16 billion rupees.

The relief scheme comes despite the government's increased defence expenditure due to ongoing military operations in northern Sri Lanka. (dpa)