Sri Lanka takes measures to ease inflationary pressure

20/07/2016,

The Government announced on 14 July new Maximum Retail Prices (MRP) for 16 essential food items including white flour, sugar, lentils (dhal) and sprats to protect consumers from food price hikes. Many of the products covered are imported and the new price controls follow weakening of the local currency, which increase the cost of imported food and an increase of Value Added Tax (VAT), from which however essential commodities are exempted. The Government also announced the release of 200 000 tonnes of rice from state reserves, in addition to releases already in mid-June, with the aim to prevent a further increase in rice prices, which have risen by almost 10 percent since April amidst expectations of a reduced 2016 second season crop. The Government also reduced import levies on wheat flour and sugar. Consumer prices rose 6 percent year-on-year in June with food commodities contributing by nearly 4 percent

Country: Sri Lanka