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Price-gouging, a double whammy to consumers

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By Claude Gunasekera

The prevalent Price Gouging of almost all the goods in the country has created a double whammy to the citizens of Sri Lanka despite their hardship with Covid-19 pandemic. Price gouging is illegal during a state of emergency in the laws of consumer protection. Some countries even without laws, issue executive orders to prohibit the action during times of emergency or during a pandemic.

Consumer prices hiked at a faster pace than never before. Except for very few locally produced food & household items and some pharmaceutical, all the other prices have increased. Despite the import restrictions, all items that are permitted to import are in unaffordable prices, including products that are locally manufactured with imported raw material. Even the 100% local produce have increased their prices due to the price increase of Petroleum, Gas and other production overheads add on to it keeping additional margins on the increased cost of living.

“30 percent of Fast Moving Consumer Goods (FMCG) in a retail store is complete direct imported products and 35 percent of local products dependent on imported raw material and the rest of 35 percent only considered complete local produce. The Price Crisis is mainly with the first and second categories consisting most demanding essential goods, which is 65 percent of regular day to day consumer needs. Meanwhile prices are increased for at least another 20 percent of local produce in the complete local produce category. It is estimated that around 85 percent of consumer goods are increased in price” said Charitha Subasinghe, President- Retail at John Keells Holdings PLC, Head of Keells Super Retail Chain. He said Inflation is a biggest challenge globally and Sri Lanka has its own foreign exchange issues and import restrictions thus creating a spike of price and product shortages.

Glenfrey De Mel, Chairman Star Media Network, a graduate of the Colombo Law Faculty who is engaged in Human Rights claimed that “It is a democratic right of the masses to have a purchasing power over essential commodities while human life and the price of essentials are closely related. When prices of essentials become incompatible with the financial well-being of the people, there is no end to the agony of the poor and under privileged families”.

“The present government failed to take right decisions, at right time, to control the existing price gouging. The government failed to implement appropriate policies to balance the economy and control the cost of living of the masses. A few Big Traders dominate the entire imports of essential commodities and control the whole national market with unethical influence of the government. The government supports them for political gains without even considering the majority of their voters who elected them. Therefore, the government is solely accountable for this stern blunder” said Dinusha Sampath Liyanage, Chairman / Managing Director of Sampath Group of Companies, the holding entity of ‘Sampath Food City’ Supermarket Chain. He told ‘The Island’ that people’s elected government is responsible to provide necessary needs of the citizen especially the essential foods and services at an affordable price and create a balance between income and purchasing power while maintaining an acceptable inflation rate.

Liyanage further told ‘The Island’ that instead making allegations to the government or to the big trader, as an entrepreneur engaged in the retailing business, he could offer maximum possible discounts at all 20 outlets of the ‘Sampath Food City’ Supermarket chain at this crucial juncture as a concession to all walk in customers. He said profits are required for survival of a business, but profitability is not the prime aim at this moment since he realizes the anguish of the innocent consumer. Sampath Supermarket chain is the leading retail network in the Kalutara District with a large customer base over 250,000 patronizing their outlets. He said certain fruits and vegetables that are sold in his supermarkets are direct from his own farms and since there is no intermediary trade margins involved they could pass on that price benefit to the customer under the theme ‘Direct from Farm to the Consumer Hands’. “We are unique compared to other retail chains, since we offer discounts to all the products available in house. We offer 25% discount on fruits & vegetables and many other special discounts time to time on main essential goods such as rice, wheat flour, sugar, dhal, onion, potato, milk powder, biscuits etc.

A. B. Wijesinghe, Chairman ‘Lion Super’ retail chain, functioning 7 supermarkets in the outskirts of Kandy told ‘The Island’ “We pitch a different customer segment than the national supermarkets does. Our primary concern is the low and middle income ordinary consumer in the neighborhood simply the ‘villagers’ with a focused brotherhood relationship approach with a personalized service. He said they are catering to them with much understanding of their purchasing power and offer the best possible prices even less than the neighboring retail store. He also said the lowest price theory began not during this crisis period, but the core objective of setting up the original ‘Singhe’ retail chain was to offer the lowest price in the market. He continues to move on the same mission under the new brand of Lion Supermarkets.

“We operate 7 supermarkets in the outskirts of Kandy and launched a ‘Double Discount’ offer at all our outlets as a special concession to deprived customers during this hard time, offering extra discounts for many products through the support of our supply chain. We were able to negotiate additional discounts from most of the suppliers and offered the whole chunk direct to our customers. We are able to make our customers much satisfied and appreciated with this massive price decrease concept” said Indika Sampath, Head of Operations ‘Lions Super’.

In addition it was found all the modern trade retailers such as Lanka Sathosa, Cargills Food City, Keells Super, Laugfs Supermarkets, Arpico Super Centers, Glomark, Spar, Salinda Supermarkets, Hewage Supermarkets and many others are offering attractive discounts to their customers. Some may look at it as they do a business promotion but yet ultimately customers will benefit by their offers resulting in some what a concession at this crucial time.

“We service number of retail outlets in the country with a range of local consumer food products. We don’t produce or distribute a single imported product, but the sales turnover is dropped by 40 percent during the month of November. Products that were supplied in the previous months were still lying at retail shelves as never before. This clearly shows the inability of consumers to spend. We see the people are buying only the most important items to survive the day. Most people have reduced their usual consumption due the high cost of living. We are even struggling to operate our factories and it’s a question how we could continue to run the business and remunerate our factory workers and it’s time to retrench staff and cut down our overheads” said Jayantha Perera Chairman ‘Jayz Kitchen’ a leading manufacturing venture of spice food.



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The eternal pilgrimage of Hajj: A journey through faith, sacrifice and humanity

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Hajj pilgrims

Every year, the spiritual compass of the Muslim world turns towards the holy city of Makkah, where millions of pilgrims gather for Hajj — one of humanity’s oldest and most profound journeys of faith.

This year, too, the sacred valleys of Saudi Arabia are filled with the echoes of “Labbaik Allahumma Labbaik” — “Here I am, O Allah, here I am” — as Muslims from every continent respond to a divine call that dates back thousands of years to Prophet Ibrahim (Abraham).

Among them are thousands of Sri Lankan pilgrims, dressed in simple white garments, leaving behind worldly status, wealth and identity in pursuit of spiritual purification and closeness to God.

According to Muslim Affairs authorities, the Kingdom of Saudi Arabia has allocated a Hajj quota of 3,500 pilgrims for Sri Lanka for Hajj 2026, enabling devotees from across the island to undertake the sacred pilgrimage. The annual allocation is determined through agreements between Saudi Arabia and Muslim-majority and minority nations worldwide.

Since early this month at the Bandaranaike International Airport in Katunayake, emotional scenes unfolded as families bade farewell to departing pilgrims with tears, embraces and prayers.

Elderly parents clutched prayer beads, children waved anxiously, while relatives sought blessings from loved ones embarking on the once-in-a-lifetime spiritual journey.

For many Sri Lankan Muslims, performing Hajj is not simply travel — it is the fulfilment of a lifelong dream nurtured through years of prayer, sacrifice and savings.

In villages, towns and cities across Sri Lanka, preparations for Hajj often begin months or even years in advance. Some families save gradually over decades, while elderly pilgrims regard the journey as the culmination of a lifetime of devotion.

Hajj is the fifth pillar of Islam and is obligatory for every financially and physically able Muslim at least once in a lifetime.

Yet the pilgrimage is far more than a religious obligation.

It is a journey deeply rooted in the story of Prophet Ibrahim, known as Abraham in Christianity and Judaism, and revered across the Abrahamic faiths as a towering symbol of faith, obedience and sacrifice.

Islamic tradition recounts how Prophet Ibrahim was commanded by Allah to leave his wife Hajjar and infant son Ismail in the barren desert valley of Makkah. With unwavering faith in God’s wisdom, Ibrahim obeyed.

Left in the scorching desert with little water or food, Hajjar desperately searched for water for her thirsty child, running seven times between the hills of Safa and Marwa.

Her determination, courage and trust in God are immortalised in the rituals of Hajj today.

Pilgrims reenact Hajjar’s desperate search by walking between Safa and Marwa, symbolising perseverance, faith and hope even in moments of despair.

According to Islamic belief, Allah answered Hajjar’s prayers by causing the miraculous Zamzam well to spring forth beneath baby Ismail’s feet — a well that continues to provide water to millions of pilgrims centuries later.

Another defining moment in Ibrahim’s story is commemorated during Hajj and Eid-ul-Adha — the willingness of the Prophet to sacrifice his beloved son in obedience to God’s command.

As Ibrahim prepared to carry out the sacrifice, Allah replaced Ismail with a ram, signifying that faith, sincerity and submission were greater than the act itself.

The symbolic stoning of the devil during Hajj recalls Ibrahim’s rejection of Satan’s temptations that sought to discourage him from obeying God.

Thus, every ritual of Hajj carries profound historical and spiritual meaning.

The pilgrimage is not simply movement through sacred spaces; it is a reenactment of timeless lessons in obedience, sacrifice, patience and devotion.

One of the most remarkable aspects of Hajj is the extraordinary equality it represents.

Pilgrims, regardless of nationality, race, language or social class, wear the same simple white attire, known as Ihram.

Presidents, businessmen, labourers and farmers stand side by side in prayer, under the blazing Arabian sun, erasing worldly distinctions and affirming the Islamic belief that all human beings are equal before God.

Religious scholars often describe Hajj as the world’s greatest annual demonstration of unity and humility.

The spiritual climax of the pilgrimage occurs at the plains of Arafat, where pilgrims spend hours in prayer and repentance seeking divine forgiveness.

Many Muslims believe that a sincerely accepted Hajj cleanses a believer of past sins and marks the beginning of a spiritually renewed life.

Upon returning home, pilgrims are honoured with the title “Hadji” or “Hajji,” a distinction that carries immense respect within Muslim communities, including in Sri Lanka.

Traditionally, a Hadji is viewed as someone who has fulfilled one of Islam’s most sacred obligations and returned with heightened spiritual responsibility.

However, Islamic scholars emphasise that the title is not merely ceremonial.

“The true significance of becoming a Hadji lies in personal transformation,” a Colombo-based Islamic scholar said.

“A pilgrim is expected to return with greater humility, compassion, honesty and social responsibility. Hajj is not about status; it is about becoming a better human being.”

Across Sri Lanka, mosques have been conducting special prayers for pilgrims, while families gather to seek blessings before departure.

The pilgrimage season also creates a unique emotional atmosphere within Muslim communities, where neighbours visit departing pilgrims and homes become centres of prayer and reflection.

Saudi Arabia has introduced extensive arrangements this year to facilitate the pilgrimage, including digital crowd management systems, improved transport networks, upgraded accommodation and enhanced healthcare services.

Sri Lankan diplomats and officials, stationed in Saudi Arabia, have been coordinating closely with Saudi authorities to ensure the welfare and smooth movement of Sri Lankan pilgrims throughout the pilgrimage period.

Sri Lanka’s Ambassador to Saudi Arabia, Ameer Ajwad, recently inspected facilities in Mina, prepared for Sri Lankan pilgrims, and reaffirmed efforts to provide a safe and spiritually fulfilling Hajj experience.

As millions circle the Holy Kaaba in prayer, Hajj continues to stand as one of the most extraordinary gatherings on Earth — a timeless spiritual movement connecting humanity across borders, cultures and generations.

For Sri Lanka’s pilgrims, the sacred journey is not merely a passage to Makkah.

It is a journey into the soul — a return to the eternal lessons of Prophet Ibrahim, Hajjar and Ismail — lessons of sacrifice, endurance, obedience and unwavering faith that continue to inspire humanity centuries later.

By Ifham Nizam

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‘Green Chilies’ returns after seven years to reignite Sri Lanka’s advertising industry spirit

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After a seven-year hiatus, one of Sri Lanka’s most loved advertising industry gatherings is making a much-anticipated return. Green Chilies 2026, the iconic festival that once defined the fun, camaraderie and creative spirit of Sri Lanka’s advertising fraternity, returns on 4th June 2026 at Rise Up, Colombo 03, bringing together professionals from across agencies, media, digital, production and marketing for an evening of celebration, entertainment, and industry camaraderie.

Originally launched in 2011, Green Chilies was conceived as a platform to celebrate Sri Lanka’s Young Lions winners as they embarked on their journey to represent the country at the prestigious Cannes Lions International Festival of Creativity, while also creating a unique opportunity for the industry to come together outside boardrooms and deadlines.

This year’s revival comes at an especially meaningful time, as an entire new generation of industry professionals have entered the business without ever experiencing the culture and energy that made Green Chilies such a defining event. Some key highlights will be the recognition of the winners of the young Lions competition and the much-loved return of The Agency Idol, the wildly entertaining competition where agencies battle it out on stage in a spirited showcase of talent, humour, and creativity, bringing back one of the event’s most iconic traditions.

Speaking about the return of the festival, Ranil de Silva, Founder of Green Chilies and of Metal Factor, said: “When we first launched Green Chilies, the idea was simple. It was to celebrate our Young Lions and create something that brought the industry together as one community. Over the years it became far more than an event, it became part of our industry culture. Seeing it return after seven years is very special, particularly because so many young professionals will now get to experience the spirit that made this industry such a fun and inspiring place to be.”

Green Chilies 2026 is organized by Metal Factor and supported by the 4A’s Sri Lanka.

Event Details:

Venue: Rise Up, Alwis Place, Colombo 03

Date: Thursday, 4th June 2026

Time: From 6.30 PM onwards

Contact : Shelley +94 77 342 3123

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JKH posts 75% EBITDA growth to Rs.80.01 billion as recent investments begin to contribute

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Krishan Balendra, Chairperson and CEO

John Keells Holdings PLC (JKH) reported a strong financial performance for FY2025/26, with Group EBITDA increasing 75% to Rs.80.01 billion, reflecting the contribution of investments made over the past several years and the continued performance of the Group’s established businesses.

Group recurring EBITDA increased 71% to Rs.78.05 billion, compared to Rs.45.69 billion in the previous year, driven primarily by Retail, Transportation and Leisure. Recurring profit before tax rose 143% to Rs.35.72 billion, while recurring profit attributable to equity holders of the parent increased 155% to Rs.13.24 billion.

The year also marked the culmination of the largest investment phase in the Group’s history, with the operationalisation of key investments signalling a shift in the capital cycle from development to contribution. Overall funding requirements reduced materially in line with expectations, while net debt to EBITDA stood at approximately 2 times and net debt to equity at approximately 31%.

City of Dreams Sri Lanka recorded positive EBITDA for the full year, following the completion and launch of the remaining components of the integrated resort. Cinnamon Life’s conference and event spaces attracted interest from local and international organisers, while casino operations showed an encouraging pick-up from the fourth quarter onwards.

Colombo West International Terminal, the project company of WCT-1, recorded strong throughput growth during the year, supported by an improving volume mix. The business delivered a positive profit after tax ahead of expectations, despite recognising depreciation relating to phase 1, and has reached full utilisation of phase 1 capacity based on its latest monthly run-rate.

John Keells CG Auto recorded an exceptional year, supported in part by pent-up demand and the brand positioning and vehicle range of BYD.

The Supermarket business recorded approximately 14% growth in same store sales, driven primarily by a 14.3% increase in footfall. The Beverages and Confectionery businesses recorded strong volume growth, with Beverages benefiting from higher margins, while Confectionery margins were impacted by higher raw material costs and expenses linked to new product introductions.

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