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Home Business & Finance Economic Policies

Sri Lanka budget deficit down 31-pct, taxes up 36-pct in October todayheadline

December 30, 2024
in Economic Policies
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ECONOMYNEXT – A vocal Sri Lanka price control advocate, Asela Sampath, who says he is heads an organization called the National Consumer Front, has urged the public to eat fried rice in the New Year after red rice used for milk rice disappeared from shop shelves due to ceiling prices.

“Instead of milk rice we will eat fried rice, because we have every day eaten milk rice in the past,” Sampath told reporters in a live cookery demonstration in front of news cameras, footage carried over Sri Lanka’s Hiru News showed.

“Here is imported white raw rice at 220 rupees a kilogram. We will eat fried rice because we have renewed the country,” he said breaking an egg.

RELATED Raw rice vanish from Sri Lanka shop shelves after CAA price controls

Sampath had earlier urged the Consumer Affairs Authority to impose price controls on eggs.

The CAA’s price controls led to the collapse of the layer farm sector.

Many of the egg farmers whose businesses failed as a result of price controls voted for the current National People’s Power administration as a result.

Sampath, who also claims to be the head of the All Island Canteen Owners’ Association had in the past also announced public price hikes in prepared foods and complained to the CAA to maintain egg price controls.

“Here the imported white rice is spreading nicely,” Sampath said on December 29, expertly shaking his red non-stick pan to flip the some sliced vegetables and rice over.

“Don’t lament over milk rice after today. On New Years days make a fried rice with imported white raw rice. It is only 220 rupees a kilogram.”

Traders interviewed by Hiru News said that they could not get red rice and sell at the controlled price.

Sri Lanka’s Consumer Affairs Authority has previously performed its disappearing trick on, dhall, sugar and tinned fish.

Traders say red rice is available at 260 rupees a kilogram but they do not dare to sell the rice for fear of the CAA fines.

Sri Lanka’s rice prices in general and red rice in particular tends to go up in December ahead of the main rice harvest in February as imports are taxed and are under licensing.

In some years the red rice had risen over Nadu and reached close to Samba, an examination of past data shows.

However, with price controls being imposed, red rice had disappeared from the market this December.

Economic analysts had urged the central bank not to print money and the CAA not to impose price controls.

RELATED Sri Lanka prints Rs100bn through open market operations

Samapath had previously urged authorities to impose price controls on coconut.

“Put a controlled price on coconut so that people can eat pol sambol,” Sampath told at the time.

Since his advice was ignored no price control were imposed, no coconut shortages were created by CAA at the time, and the then government managed to dodge the bullet.

In Sri Lanka, coconut imports are banned due to quarantine rules and edible oil imports are taxed for nationalism. (Colombo/Dec29/2024)


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