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Govt warns of bringing back price controls amid sticky prices ahead of polls

Published

2 years ago

2024/07/21

ECONOMYNEXT –The government will be compelled to bring back price controls on some essential commodities as most traders have failed to slash their prices in line with the government’s cost reduction of fuel, energy, gas, and transport, Trade Minister Nalin Fernando said.

The plan is now considered days after the island nation slashed the electricity cost by an average of 22.5 percent while gradually reducing the prices of cooking gas and fuel in the last two consecutive months.

Despite the price reductions, the cost of essential foods has still been the same as when the prices of fuel, gas, electricity, and transport were at their peak, consumers say.

President Ranil Wickremesinghe’s government is in the process of reducing the prices of energy sources to slash overall cost of living.

The move comes ahead of a presidential poll possibly in early October which the island nation’s Election Commission is expected to declare next week.

The government in the past failed to maintain stable prices for essential goods through the state-owned Consumer Affairs Authority (CAA) despite imposing price controls. Such moves have led to hoarding of commodities and increased prices.

“The Consumer Affairs Authority lost the way on how to address these issues,” Trade Minister Fernando told reporters at a media briefing in Colombo on Friday (19).

“So now we are in the final stage of amending the Act and changing the laws. We should be able to table the amendments in the parliament in the next two weeks,” he said.

Fernando said the government is being questioned by consumers and media on why it cannot reduce the price of essential goods despite prices of diesel, electricity, gas, and transport being slashed.

“This week I have decided to take crucial decisions. I will be calling on all traders’ associations in the coming week,” he said.

“If they don’t reduce the prices in line with the relief they have got from the price reductions, we are compelled to bring back control prices on some commodities.”

Goods usually go off the shelf and black markets are created due to government price controls which prevent a market clearing price from being established.

The CAA had earlier made eggs, tinned fish, dhal, and wheat flour disappear from shelves with its price controls.

Classical economists describe this problem as unintended consequences of state interventions.

One state intervention to give a special privilege to one set of economic players may require two or more interventions to solve negative fallouts.

“I am not a minister to go ahead with controlled prices. But, if they don’t pass the relief the government has given them, we will definitely take a decision on this. With that, I believe we will be able to bring down the prices,” Fernando said.

Sri Lanka decided to abandon price controls in October 2021 after they created shortages and led to black markets.

Fernando said unfair market practices including not reducing the prices of essential goods, increasing the prices when raw material prices are increasing, and sellers earning exorbitant profits unethically still prevail.

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Heat Index at Caution Level in the Northern, North-central, North-western, Western, Sabaragamuwa, Eastern and Southern provinces and in Monaragala district

Published

12 hours ago

2026/04/16

Priyan

Warm Weather Advisory
Issued by the Natural Hazards Early Warning Centre
Issued at 3.30 p.m. on 15 April 2026, valid for 16 April 2026.

The Heat index, the temperature felt on human body is likely to increase up to ‘Caution level’ at some places in the Northern, North-central, North-western, Western, Sabaragamuwa, Eastern
and Southern provinces and in Monaragala district.

The Heat Index Forecast is calculated by using relative humidity and maximum temperature and this is the condition that is felt on your body. This is not the forecast of maximum temperature. It is generated by the Department of Meteorology for the next day period and prepared by using global numerical weather prediction model data.

Effect of the heat index on human body is mentioned in the above table and it is prepared on the advice of the Ministry of Health and Indigenous Medical Services.

ACTION REQUIRED
Job sites: Stay hydrated and takes breaks in the shade as often as possible.
Indoors: Check up on the elderly and the sick.
Vehicles: Never leave children unattended.
Outdoors: Limit strenuous outdoor activities, find shade and stay hydrated.
Dress: Wear lightweight and white or light-colored clothing.

Note:
In addition, please refer to advisories issued by the Disaster Preparedness & Response Division, Ministry of Health in this regard as well. For further clarifications please contact 011-7446491

Latest News

Indonesian Navy Sailing Ship KRI BIMA SUCI – 945 makes port call in Colombo

Published

17 hours ago

2026/04/15

Priyan

The Indonesian Navy Sailing Ship KRI BIMA SUCI – 945 arrived at the Port of Colombo on a goodwill visit on 15 Apr 2026 and was welcomed by the Sri Lanka Navy (SLN) in compliance with time-honoured naval traditions.

The vessel’s arrival is a key highlight of the ASEAN Plus Cadet Sail (APCS) – 2026 programme , accompanying a diverse contingent of Navy cadets from 26 different nations alongside their Indonesian counterparts.

The ship is commanded by Commander SUGENG HARIYANTO. Meanwhile, Officer Under-trainees of the Sri Lanka Navy are expected to participate in various programmes aboard the
ship and naval personnel observe its operational functions during its stay in the island.

Furthermore, the ship’s crew is scheduled to take part in programmes organized by the Sri Lanka Navy to enhance camaraderie between the two navies, as well as visit several tourist attractions in the country.

News

PM initiates children into learning at the auspicious time while observing New Year traditional customs and rituals

Published

17 hours ago

2026/04/15

Priyan

The Sinhala and Tamil New Year cultural festival, organized by the Ministry of Buddha Sasana, Religious and Cultural Affairs, was held on Tuesday (14) in Gampaha under the patronage of Prime Minister Dr. Harini Amarasuriya, with the performance of traditional auspicious customs and rituals.

In accordance with tradition, during the Punya Kalaya (inauspicious time), the Prime Minister visited the Medagama Sri Sunandarama Viharaya in Gampaha and participated in religious observances and received blessings from Venerable Thunmodara Samitha Thero, a member of the Karaka Sangha Sabha of the Sri Lanka Ramanna Maha Nikaya and the Chief Incumbent of the Medagama Sri Sunandarama Dharmaduta Piriven Viharaya.

The traditional observances of the Sinhala and Tamil New Year cultural festival were held at the residence of Darshana Weerasinghe in Gampaha. Marking the auspicious time for commencing work, and upon the invitation of the host family, the Prime Minister planted a sapling within the premises. Concurrently, Minister of Buddha Sasana, Religious and Cultural Affairs, Dr. Hiniduma Sunil Senevi, and Minister of Foreign Affairs and Tourism, Vijitha Herath, joined the PM.

Subsequently, the Prime Minister joined children in engaging in traditional folk games.

At the auspicious time for engaging work and educational activities, the PM participated with children in reading and writing, guiding them and symbolically marking the commitment to advancing the educational development of the nation’s children.

Thereafter, the Prime Minister and other distinguished guests observed the traditional customs of exchanging greetings, transactions and gifts with the host family, and joined them to partake in the customary New Year meal.

Extending New Year greetings to all citizens, the Prime Minister expressed her gratitude to all Sri Lankans, both at home and abroad, for their contributions in overcoming and effectively managing the various challenges faced by the country.

Speaking at the occasion, Minister Dr. Hiniduma Sunil Senevi stated that the Sinhala and Tamil New Year festival symbolizes renewal and purity, and reflects the energy of the sun. He also conveyed his wishes for a peaceful and prosperous New Year for all.

The occasion was attended by the Deputy Minister of Finance and Planning and Minister of Labour, Dr. Anil Jayantha; Deputy Minister of Labour, Mahinda Jayasinghe; Member of Parliament for the Gampaha District, Ruwan Mapalagama; along with the Gampaha District Secretary, Mayor, Divisional Secretaries, and a large number of government officials.

(Prime Minister’s Media Division)