A proposal to set up a National Economic Council will be presented to Cabinet again after a discussion between the President and the Prime Minister, a senior government minister said.

He said President Maithripala Sirisena proposed to set up the Council, as the top-most body on economic matters, as a solution to problems surrounding the Cabinet Committee on Economic Management (CCEM).

The new Council will be headed by President Sirisena.

When the proposal to set up a Council was presented to the Cabinet last week, Prime Minister Ranil Wickremesinghe, who heads the CCEM, said he wanted to discuss the matter with the President, separately.

Following the Prime Minister's remark. the President deferred the proposal and said it would be taken up against after his discussion with the Prime Minister.

Political observers say the setting up of the National Economic Council will make the CCEM redundant.

Informed government sources said the discussion between the President and the Prime Minister on the proposed National Economic Council would be held this week.