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Customs duty on milk powder is reimposed; Special commodity levy on eggs reduced

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The Treasury has withdrawn the duty waiver granted for imported milk powder.

The decision has been taken with the aim of adjusting to world market prices, a senior official said. Accordingly, the applicable Customs import duty on the importation of powdered milk is 20% or Rs. 225 for a kilogram, whichever is higher, the Treasury states.

Meanwhile, the Treasury has reduced the special commodity levy on imported eggs from Rs. 50 an egg to Rs. 1 to encourage private sector imports. So far only the state sector has been importing eggs from India.

Egg prices have been dropping steadily after the removal of price controls and the import of eggs from India.

However, local producers said if the government reduced the taxes imposed on food items used in the poultry industry they could further reduce prices.

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CAA confiscates Keeri Samba stocks worth over Rs. 3.8 mn.

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The Consumer Affairs Authority (CAA) has confiscated a stock of Keeri Samba rice worth over Rs. 3.8 million.

 The stocks were officially seized today (March 18) following a legal case against two shop officials in Colombo 12.

On February 11, the Colombo Chief Magistrate’s Court (No. 5) fined shop owner Abdul Jabbar Mohamed Siyas and manager Kuruppan Murugayya Rs. 10,000 and Rs. 20,000, respectively, after they pleaded guilty to hoarding rice. 

The case was filed after a raid conducted by the CAA revealed that the shop falsely claimed to be out of Kiri Samba rice, despite hiding 3,000 five-kilogram packs on the premises.

Under the Consumer Affairs Authority Act, when a retailer is found guilty of falsely declaring goods unavailable, the court has the authority to confiscate the stock.

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Protest against selling sick cattle at Lonach farm for beef

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Workers of Lonach Farm in Watawala, Ginigathhena, had staged a protest demonstration on March 14, alleging that the farm management was selling tainted beef to butchers in the area.

The farm is operated by Watawala Dairy Pvt. Ltd. It is a subsidiary of Sunshine Holdings, which was recently embroiled in controversy after it was revealed that they had sold a drug to the Ministry of Health at a massive rip off price in 2023.

They accuse that the tainted meat was that of ailing cattle that were either dying or dead.

Although the farm had previously taken measures to properly dispose of carcasses when animals had died from diseases, under the current management, tainted meat is currently ending up at local butcher stalls, putting the community at risk, they point out.

Two truck loads of such ailing cattle had been taken to the slaughterhouse in the Bogawantalawa new town area during the wee hours of March 14 with one truck caught red handed by the workers.

The workers say that the cattle was transported by the management by altering the date of a cattle transport permit, which was previously set for March 12.

Police officers from Norton Bridge, who had arrived at the venue of the protest, had inspected the truck stopped by the workers. Upon the request of the police officers, the animals inside were taken back to the farm.

An investigation has been initiated after workers had photographed the rest of the cattle taken to the slaughterhouse and informed the police and PHI.

Background of Lonach Farm

Built by Watawala Dairy Limited (WDL), Lonach is a state-of-the-art dairy farm which is a wholly-owned subsidiary of Watawala Plantations.

A Board of Investment (BOI) registered project, it is situated on a 50-hectare site in Watawala, Ginigathhena.

The project commenced in March 2016 as a pilot project called ‘Lonach Farm’ with 120 cattle, three cow houses and a milking parlour.

Watawala Dairy Limited imported 246 heifers directly from Australia and New Zealand in 2018, and 928 cows were purchased from the Government of Sri Lanka in 2017 at a concessionary price under an agreement to develop the local dairy industry. However, much of the heifers imported in this manner at a concessionary price had contracted illnesses such as hoof diseases, sparking much controversy back then.

However, much of the heifers imported in this manner at a concessionary price had contracted illnesses such as hoof diseases, sparking much controversy back then.


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Imported milk powder prices to be upped from April

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Powdered milk food importers have decided to increase the prices by 4.7% with effect from April 01, 2025.

Accordingly, the price of a 400-gram packet of imported milk powder is expected to increase by around Rs. 50.

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