Minister Wasantha Samarasinghe has said that the government has decided to impose maximum retail prices on a range of essential items in the future.
He made these remarks today (Dec. 16).
Highlighting the disparity between the production cost and market price of goods, the minister pointed out, “A water bottle that sells for Rs. 100 can be sold for less than Rs. 40. A packet of salt, produced at a cost of Rs. 52, is being sold for Rs. 100.”
Meanwhile, according to an official of the Consumer Affairs Authority (CAA), products that are expected to come under MRPs include bakery products such as bread, drinking water bottles, locally produced salt, imported essential food items such as dhal, onions and potatoes as well as several food items at restaurants such as fried rice and Kottu.
The Consumer Affairs Authority (CAA) has warned to prosecute importers and retailers selling salt without proper labels, including missing manufacturer/importer info and retail price.
The public is advised not to buy such products, while distributors have urged to maintain valid invoices with supplier details or face legal consequences.
The National Book Traders Association says that the price of printed books has increased by 20% due to the imposition of Value Added Tax (VAT) and Nation Building Tax (NBT).
Sri Lanka Book Publishers’ Association President – Mr. Samantha Indeewara, made this statement while speaking at the annual anniversary event of the National Book Traders Association.
“The price of a book has increased by 20%, or about one-fifth. Officials are confusing the issue. Previously, there was a 15% VAT imposed on many items but there was no VAT on printed books. That’s what directly changed from 0% to 18%. Stationery previously had only 3% VAT. They are mixing up these two categories.”
“Around a week ago, there was a letter from the Presidential Secretariat stating that they are conducting an analysis regarding VAT and will subsequently provide an answer,” he added. Meanwhile, Mr. Gamini Moragoda, patron of the National Book Traders Association, also expressed his views to the media on the matter:
“A VAT that is not levied in any other country in the world is being imposed on our books. The introduction of this tax from Jan. 2024, which didn’t exist in Sri Lanka for 75 years, is destroying the book industry. If this continues, a child will not be able to afford a single book in the future,” he pointed out.
Despite the 06 months since the agreement was signed for the $3.7 billion Sinopec oil refinery in Hambantota, the project remains stalled due to unresolved disputes over local market access, reports reveal.
The project, signed during President Anura Kumara Dissanayake’s state visit to Beijing in Jan. 2025, was touted as Sri Lanka’s largest-ever foreign direct investment (FDI) project.
It involves China’s state-owned petroleum giant Sinopec constructing a state-of-the-art refinery with a capacity of 200,000 barrels per day in Hambantota.
According to the media release issued by the President’s Media Division on the occasion of the signing in Jan. 2025, a substantial portion of the refinery’s output was planned for export, further enhancing the nation’s foreign exchange earnings.
“This major investment from China is expected to bolster Sri Lanka’s economic growth while uplifting the livelihoods of low-income communities in the Hambantota area. Moreover, the benefits of this project are anticipated to positively impact the overall Sri Lankan population in the near future,” the PMD release further noted.
According to ‘Daily Mirror’, the project has hit a snag over the government imposing a 20% cap on the company’s local sales, despite Sinopec’s demand for unrestricted access to Sri Lanka’s domestic fuel market.
A senior Energy Ministry official, on the condition of anonymity, has confirmed that no agreement has been reached on the market share issue, though discussions are underway to resolve the matter, the report adds.
