Accordingly, a Pelawatta 400g milk powder packet has been increased by 105 rupees to 625 rupees.

The price hike comes soon after imported milk powder producers increased their prices.

However, it is learnt that Fonterra Brands Lanka had distributed milk powder stocks with increased prices even before the decision was officially announced.

'Sri Lanka Mirror' learns that the company is able to learn of such decisions beforehand due to a close link between the company and a powerful figure in political circles.