Minister of Agriculture, Livestock, Land and Irrigation – K.D. Lal Kantha has announced that the government has decided to import 300,000 MT of maize.
Speaking to the media after attending a District Development Committee meeting at the Kandy District Secretariat yesterday (July 03), the Minister explained that this decision was taken to prevent traders from artificially inflating maize prices.
He stated that certain large and medium-scale businesses dealing with animal feed have been hoarding maize, buying it from farmers at fair prices and reselling it at much higher rates.
According to the Minister, these traders were trying to push maize prices up to Rs.190-200 per kilogram, which would have driven up the cost of eggs to Rs.200 each and increased meat prices significantly.
The Minister emphasized that while businesses are entitled to make a profit, the government will not allow unfair price manipulation. He also noted that, in the past, even ministers profited from animal products, but those days have ended and racketeers will not be allowed to control the market.
To prevent excessive price drops that could hurt farmers, the Food Security Committee has proposed imposing a tax on imported maize, he said.
Sri Lanka Customs has refuted social media claims alleging the imposition of a new tax on small parcel imports.
Addressing the media, Customs Media Spokesman and Additional Director Seevali Arukgoda emphasized that no new taxes have been introduced, nor are there any disruptions to the clearance of imported goods.
“We are not increasing tax rates… we are simply ensuring duties are calculated correctly,” he said. “The previous system allowed for significant undervaluation and misuse. Now, we are enforcing the existing laws more transparently.”
He explained that duties are now calculated using the globally accepted Harmonized System (HS) Code, which categorizes goods by type and value, replacing the older method of relying on parcel weight or flat rates that were often exploited.
Arukgoda further assured that no parcels are being withheld and reiterated that rates remain consistent with those approved by Parliament. The changes, he said, were implemented after adequate notice was given to courier services and importers — including a 1.5-month notice period and a 2-week transition phase.
He also noted that there is no requirement for recipients of online orders to visit Customs in person. Courier companies continue to handle delivery and clearance, he added.
The grace period granted to small and medium-sized enterprises (SMEs) under Sri Lanka’s Parate Execution Law officially ended midnight yesterday (June 30) for businesses with loans exceeding Rs. 50 million.
The Parate Law grants banks the authority to seize properties pledged as collateral without court proceedings. Although its implementation had been suspended for three months by the current administration—and for six months earlier under former President Ranil Wickremesinghe—it has now been reinstated, triggering serious concern among entrepreneurs.
Deputy Minister of Economic Development – Dr. Anil Jayantha Fernando has stated that the government intends to hold discussions with all relevant parties in the coming days to address the issues linked to the law’s reimplementation.
Meanwhile, Opposition Leader – Sajith Premadasa has warned that the re-implementation of the Parate Execution Law could lead to the rapid auctioning of assets from small, medium, and micro businesses, putting them at risk.
In a statement yesterday (June 30), he emphasized that these businesses contribute over 50% to Sri Lanka’s Gross Domestic Production (GDP) and employ over 04 million people.
