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The need for an increase in the price of milk powder

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By Sanjeewa Jayaweera

The steep price increase in essentials like milk powder and cooking gas has caused much debate and anger amongst consumers. The opposition politicians are milking the angst among the public to score some points. There is no doubt that any increase in food prices causes the greatest anger and frustration amongst those struggling to make ends meet. The inability to provide dependents three square meals a day is a failure that causes a great deal of mental anguish.

In the developed world, having three meals a day is taken for granted, whilst in many developing countries, this is still not possible for a particular segment of the population. Therefore, it is the responsibility of the governments that we elect to plan and develop the economy to create productive employment so that all non-disabled adult citizens are gainfully employed. Unfortunately, successive governments in Sri Lanka have miserably failed in this area. The reasons for such failure are too numerous to be discussed in this article.

The purpose of this article is to share certain information which hopefully will enable the readers to understand better the challenge of maintaining stable prices of imported commodities and how poor decision making by GOSL makes matters worse.

It must be understood that prices of imported commodities are not within the control of the importer, who in most instances are private enterprises and individuals. Commodity prices in the world market are governed by many factors ranging from droughts and floods that impact the harvest and, at times, export bans. Currently, post covid supply chain constraints are also contributing to a surge in prices the world over as demand exceeds supply. Prices are always a function of demand and supply, and when demand exceeds supply, it is natural for prices to up.

Milk powder is an essential item amongst families with children. Due to its nutritional value, despite some in the medical profession claiming otherwise, many parents ensure that it is included in the grocery list. Therefore, the inability of parents to procure this vital commodity due to either it being too expensive or because it is not readily available leaves many such parents seething in anger. A recent news telecast before the price increase showed a long queue of persons waiting to purchase a packet of milk powder, with many complaining that they have stood for more than three hours. Some were claiming that they had travelled a distance of more than 10 kilometres.

Unfortunately, the public is not fully aware of the reasons for either the need for a sharp increase in the retail price or the cause for the shortage. The Global Dairy Trade website (www.globaldairytrade.info) shows that a metric ton of full cream milk powder on November 20, 2020, cost US $ 3,037. This price excludes freight. The retail price of 1 kg milk powder in Sri Lanka was then Rs. 945/-.

The world price then increased to a high of US $ 4,364 per ton by March 02, 2021. It has since fallen to US $ 3,749 per ton by October 05, 2021.

In addition to the significant price increase in US Dollar terms, the Sri Lanka rupee, which stood at Rs. 184 per US Dollar in October 2020 has depreciated to Rs. 203 by October 2021.

In percentage terms, the increase within the 12 months is 35 per cent whilst in March 2021, it was 50% at its peak. In addition to the rise in world prices and the depreciating rupee, the importers also had to bear an increase in freight costs, which have doubled.

The unfortunate aspect of this saga is that GOSL, through the consumer protection authority, did not allow the retail price to increase from Rs. 945. As milk powder is considered an essential item, its retail price is mandated by the GOSL.

In such a scenario, the importers were bearing significant losses. The net result was that they either stopped importing milk powder or reduced the quantity imported significantly, thus causing a shortage of milk powder in the market. When an item is sold at a loss, the more you sell, the more you lose.

The fact that the GOSL did not grant a price increase is unfathomable. It is basic common sense that no private enterprise is able or willing to bear losses. Private business people are the favourite whipping boys for politicians, media, and the public in our country. No doubt some racketeers fleece the public. People need to understand that those who engage in business activities invest their funds, invariably savings in expectation of getting a reasonable return. It is no different to us as individuals investing our savings in fixed deposits. We rightfully expect a decent return which till recently was around 10 per cent for the year. Therefore, in my view, given the risk taken by those venturing into business, a return between 15 per cent to 20 per cent after tax is a fair return. Many don’t achieve such a return, and quite a lot fail in their business ventures and lose their savings.

The alternative is for the GOSL to be the importer. However, given the repeated scams that have been perpetrated by those working in the state sector, such as Sathosa, we know that government enterprises are ill-suited for such activities. In that case, the private importers should be allowed to operate in an environment where the objective of cost-plus profit is achieved, and it is for the GOSL to facilitate this.

Businesses are often accused of not bringing down prices once increases are granted despite world prices reducing, and the general belief is that business enterprises are making super-profits. In most instances, this is not the case. The actions of the GOSL, which many are unaware of, prevent the prices of such commodities from being reduced. I want to share an example of how the GOSL uses its power to levy duties and taxes on imports that prevent importers from passing on the benefit to the consumer.

The GOSL enforces customs duty at the point of import which is a cost that needs to be added before arriving at the retail price. It has been and is the policy of the GOSL to increase the duty component when world prices of essential items reduce and reduce such duty when world prices increase.

The example given below is based on records maintained by a former colleague of mine who was the purchasing director. The company that we worked for imported Skimmed Milk Powder (SMP) as a raw material.

It should be noted that the world price shown would have fluctuated during the period. Therefore, I have shown the world price on the date when the duty change was implemented.

I trust the above schedule explains why importers of milk powder are constrained from passing on the benefit of reducing prices to the consumer. Thus, it is evident that the GOSL is surreptitiously keeping the benefit to themselves and not allowing it to be passed on to the consumers.

The rationale of pricing imports that I have outlined above is equally applicable in determining the price of gas, petrol and diesel. Even state enterprises like the Ceylon Petroleum Corporation and Litro Gas should be allowed to trade on a formula of cost-plus profit. There is no alternative to this principle.

My contention and that of many who are familiar with Economics and Finance are that by not passing on the cost increase through a price formula based on cost plus profit, even those who can bear such price increases are subsidized. There will be some consumers for whom the increased cost of petrol, diesel, gas and milk powder will have no consequences; there will be some consumers for whom a certain degree of adjustments to their monthly expenditure will need to be made and a degree of belt-tightening to accommodate such price increases. Some of these adjustments might mean resorting to carpooling, travelling by train or bus. That is the choice that needs to be made. However, there will be a segment of the population who are unable to bear such price increases. Therefore, the GOSL should provide a monetary allowance to bear such price increases and make them responsible for allocating their funds. I say this as, at times, I am perplexed when I see some of the people who flock to the Liquor shops when they are opened after a period of closure.



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Ethnic-related problems need solutions now

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President Dissanayake in Jaffna

In the space of 15 months, President Anura Kumara Dissanayake has visited the North of the country more than any other president or prime minister. These were not flying visits either. The president most recent visit to Jaffna last week was on the occasion of Thai Pongal to celebrate the harvest and the dawning of a new season. During the two days he spent in Jaffna, the president launched the national housing project, announced plans to renovate Palaly Airport, to expedite operations at the Kankesanthurai Port, and pledged once again that racism would have no place in the country.

There is no doubt that the president’s consistent presence in the north has had a reassuring effect. His public rejection of racism and his willingness to engage openly with ethnic and religious minorities have helped secure his acceptance as a national leader rather than a communal one. In the fifteen months since he won the presidential election, there have been no inter community clashes of any significance. In a country with a long history of communal tension, this relative calm is not accidental. It reflects a conscious political choice to lower the racial temperature rather than inflame it.

But preventing new problems is only part of the task of governing. While the government under President Dissanayake has taken responsibility for ensuring that anti-minority actions are not permitted on its watch, it has yet to take comparable responsibility for resolving long standing ethnic and political problems inherited from previous governments. These problems may appear manageable because they have existed for years, even decades. Yet their persistence does not make them innocuous. Beneath the surface, they continue to weaken trust in the state and erode confidence in its ability to deliver justice.

Core Principle

A core principle of governance is responsibility for outcomes, not just intentions. Governments do not begin with a clean slate. Governments do not get to choose only the problems they like. They inherit the state in full, with all its unresolved disputes, injustices and problemmatic legacies. To argue that these are someone else’s past mistakes is politically convenient but institutionally dangerous. Unresolved problems have a habit of resurfacing at the most inconvenient moments, often when a government is trying to push through reforms or stabilise the economy.

This reality was underlined in Geneva last week when concerns were raised once again about allegations of sexual abuse that occurred during the war, affecting both men and women who were taken into government custody. Any sense that this issue had faded from international attention was dispelled by the release of a report by the Office of the Human Rights High Commissioner titled “Sri Lanka: Report on conflict related sexual violence”, dated 13.01.26. Such reports do not emerge in a vacuum. They are shaped by the absence of credible domestic processes that investigate allegations, establish accountability and offer redress. They also shape international perceptions, influence diplomatic relationships and affect access to cooperation and support.

Other unresolved problems from the past continue to fester. These include the continued detention of Tamil prisoners under the Prevention of Terrorism Act, in some cases for many years without conclusion, the failure to return civilian owned land taken over by the military during the war, and the fate of thousands of missing persons whose families still seek answers. These are not marginal issues even when they are not at the centre stage. They affect real lives and entire communities. Their cumulative effect is corrosive, undermining efforts to restore normalcy and rebuild confidence in public institutions.

Equal Rights

Another area where delay will prove costly is the resettlement of Malaiyaha Tamil communities affected by the recent cyclone in the central hills, which was the worst affected region in the country. Even as President Dissanayake celebrated Thai Pongal in Jaffna to the appreciation of the people there, Malaiyaha Tamils engaged in peaceful campaigns to bring attention to their unresolved problems. In Colombo at the Liberty Roundabout, a number of them gathered to symbolically celebrate Thai Pongal while also bringing national attention to the issues of their community, in particular the problem of displacement after the cyclone.

The impact of the cyclone, and the likelihood of future ones under conditions of climate change, make it necessary for the displaced Malaiyaha Tamils to be found new places of residence. This is also an opportunity to tackle the problem of their landlessness in a comprehensive manner and make up for decades if not two centuries of inequity.

Planning for relocation and secure housing is good governance. This needs to be done soon. Climate related disasters do not respect political timetables. They punish delay and indecision. A government that prides itself on system change cannot respond to such challenges with temporary fixes.

The government appears concerned that finding new places for the Malaiyaha Tamil people to be resettled will lead to land being taken away from plantation companies which are said to be already struggling for survival. Due to the economic crisis the country has faced since it went bankrupt in 2022, the government has been deferential to the needs of company owners who are receiving most favoured treatment. As a result, the government is contemplating solutions such as high rise apartments and townhouse style housing to minimise the use of land.

Such solutions cannot substitute for a comprehensive strategy that includes consultations with the affected population and addresses their safety, livelihoods and community stability.

Lose Trust

Most of those who voted for the government at the last elections did so in the hope that it would bring about system change. They did not vote for the government to reinforce the same patterns that the old system represented. At its core, system change means rebalancing priorities. It means recognising that economic efficiency without social justice is a short-term gain with long-term costs. It means understanding that unresolved ethnic grievances, unaddressed wartime abuses and unequal responses to disaster will eventually undermine any development programme, no matter how well designed. Governance that postpones difficult decisions may buy time, but lose trust.

The coming year will therefore be decisive. The government must show that its commitment to non racism and inclusion extends beyond conflict prevention to conflict resolution. Addressing conflict related abuses, concluding long standing detentions, returning land, accounting for the missing and securing dignified resettlement for displaced communities are not distractions from the government programme. They are central to it. A government committed to genuine change must address the problems it inherited, or run the risk of being overwhelmed when those problems finally demand settlement.

by Jehan Perera

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Education. Reform. Disaster: A Critical Pedagogical Approach

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PM Amarasuriya

This Kuppi writing aims to engage critically with the current discussion on the reform initiative “Transforming General Education in Sri Lanka 2025,” focusing on institutional and structural changes, including the integration of a digitally driven model alongside curriculum development, teacher training, and assessment reforms. By engaging with these proposed institutional and structural changes through the parameters of the division and recognition of labour, welfare and distribution systems, and lived ground realities, the article develops a critical perspective on the current reform discourse. By examining both the historical context and the present moment, the article argues that these institutional and structural changes attempt to align education with a neoliberal agenda aimed at enhancing the global corporate sector by producing “skilled” labour. This agenda is further evaluated through the pedagogical approach of socialist feminist scholarship. While the reforms aim to produce a ‘skilled workforce with financial literacy,’ this writing raises a critical question: whose labour will be exploited to achieve this goal? Why and What Reform to Education

In exploring why, the government of Sri Lanka seeks to introduce reforms to the current education system, the Prime Minister and Minister of Education, Higher Education, and Vocational Education, Dr. Harini Amarasuriya, revealed in a recent interview on 15 January 2026 on News First Sri Lanka that such reforms are a pressing necessity. According to the philosophical tradition of education reform, curriculum revision and prevailing learning and teaching structures are expected every eight years; however, Sri Lanka has not undertaken such revisions for the past ten years. The renewal of education is therefore necessary, as the current system produces structural issues, including inequality in access to quality education and the need to create labour suited to the modern world. Citing her words, the reforms aim to create “intelligent, civil-minded citizens” in order to build a country where people live in a civilised manner, work happily, uphold democratic principles, and live dignified lives.

Interpreting her narrative, I claim that the reform is intended to produce, shape, and develop a workforce for the neoliberal economy, now centralised around artificial intelligence and machine learning. My socialist feminist perspective explains this further, referring to Rosa Luxemburg’s reading on reforms for social transformation. As Luxemburg notes, although the final goal of reform is to transform the existing order into a better and more advanced system: The question remains: does this new order truly serve the working class? In the case of education, the reform aims to transform children into “intelligent, civil-minded citizens.” Yet, will the neoliberal economy they enter, and the advanced technological industries that shape it, truly provide them a better life, when these industries primarily seek surplus profit?

History suggests otherwise. Sri Lanka has repeatedly remained at the primary manufacturing level within neoliberal industries. The ready-made garment industry, part of the global corporate fashion system, provides evidence: it exploited both manufacturing labourers and brand representatives during structural economic changes in the 1980s. The same pattern now threatens to repeat in the artificial intelligence sector, raising concerns about who truly benefits from these education reforms

That historical material supports the claim that the primary manufacturing labour for the artificial intelligence industry will similarly come from these workers, who are now being trained as skilled employees who follow the system rather than question it. This context can be theorised through Luxemburg’s claim that critical thinking training becomes a privileged instrument, alienating the working class from such training, an approach that neoliberalism prefers to adopt in the global South.

Institutional and Structural Gaps

Though the government aims to address the institutional and structural gaps, I claim that these gaps will instead widen due to the deeply rooted system of uneven distribution in the country. While agreeing to establish smart classrooms, the critical query is the absence of a wide technological welfare system across the country. From electricity to smart equipment, resources remain inadequate, and the government lags behind in taking prompt initiative to meet these requirements.

This issue is not only about the unavailability of human and material infrastructure, but also about the absence of a plan to restore smart normalcy after natural disasters, particularly the resumption of smart network connections. Access to smart learning platforms, such as the internet, for schoolchildren is a high-risk factor that requires not only the monitoring of classroom teachers but also the involvement of the state. The state needs to be vigilant of abuses and disinformation present in the smart-learning space, an area in which Sri Lanka is still lagging. This concern is not only about the safety of children but also about the safety of women. For example, the recent case of abusive image production via Elon Musk’s AI chatbox, X, highlights the urgent need for a legal framework in Sri Lanka.

Considering its geographical location, Sri Lanka is highly vulnerable to natural disasters, the frequency in which they occur, increasing, owing to climate change. Ditwah is a recent example, where villages were buried alive by landslides, rivers overflowed, and families were displaced, losing homes that they had built over their lifetimes. The critical question, then, is: despite the government’s promise to integrate climate change into the curriculum, how can something still ‘in the air ‘with climate adaptation plans yet to be fully established, be effectively incorporated into schools?

Looking at the demographic map of the country, the expansion of the elderly population, the dependent category, requires attention. Considering the physical and psychological conditions of this group, fostering “intelligent, civic-minded” citizens necessitates understanding the elderly not as a charity case but as a human group deserving dignity. This reflects a critical reading of the reform content: what, indeed, is to be taught? This critical aspect further links with the next section of reflective of ground reality.

Reflective Narrative of Ground Reality

Despite the government asserting that the “teacher” is central to this reform, critical engagement requires examining how their labour is recognised. In Sri Lanka, teachers’ work has long been tied to social recognition, both utilised and exploited, Teachers receive low salaries while handling multiple roles: teaching, class management, sectional duties, and disciplinary responsibilities.

At present, a total teaching load is around 35 periods a week, with 28 periods spent in classroom teaching. The reform adds continuous assessments, portfolio work, projects, curriculum preparation, peer coordination, and e-knowledge, to the teacher’s responsibilities. These are undeclared forms of labour, meaning that the government assigns no economic value to them; yet teachers perform these tasks as part of a long-standing culture. When this culture is unpacked, the gendered nature of this undeclared labour becomes clear. It is gendered because the majority of schoolteachers are women, and their unpaid roles remain unrecognised. It is worth citing some empirical narratives to illustrate this point:

When there was an extra-school event, like walks, prize-giving, or new openings, I stayed after school to design some dancing and practice with the students. I would never get paid for that extra time,” a female dance teacher in the Western Province shared.

I cite this single empirical account, and I am certain that many teachers have similar stories to share.

Where the curriculum is concerned, schoolteachers struggle to complete each lesson as planned due to time constraints and poor infrastructure. As explained by a teacher in the Central Province:

It is difficult to have a reliable internet connection. Therefore, I use the hotspot on my phone so the children can access the learning material.”

Using their own phones and data for classroom activities is not part of a teacher’s official duties, but a culture has developed around the teaching role that makes such decisions necessary. Such activities related to labour risks further exploitation under the reform if the state remains silent in providing the necessary infrastructure.

Considering that women form the majority of the teaching profession, none of the reforms so far have taken women’s health issues seriously. These issues could be exacerbated by the extra stress arising from multiple job roles. Many female teachers particularly those with young children, those in peri- or post-menopause stages of their life, or those with conditions like endometriosis may experience aggravated health problems due to work-related stress intensified by the reform. This raises a critical question: what role does the state play in addressing these issues?

In Conclusion

The following suggestions are put forward:

First and foremost, the government should clearly declare the fundamental plan of the reform, highlighting why, what, when, and how it will be implemented. This plan should be grounded in the realities of the classroom, focusing on being child-centred and teacher-focused.

Technological welfare interventions are necessary, alongside a legal framework to ensure the safety and security of accessing the smart, information-centred world. Furthermore, teachers’ labour should be formally recognised and assigned economic value. Currently, under neoliberal logic, teachers are often left to navigate these challenges on their own, as if the choice is between survival or collapse.

Aruni Samarakoon teaches at the Department of Public Policy, University of Ruhuna

Kuppi is a politics and pedagogy happening on the margins of the lecture hall that parodies, subverts, and simultaneously reaffirms social hierarchies.

By Aruni Samarakoon

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Smartphones and lyrics stands…

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Diliup Gabadamudalige: Artistes can stay at home and hire their avatar for concerts, movies, etc.

Diliup Gabadamudalige is, indeed, a maestro where music is concerned, and this is what he had to say, referring to our Seen ‘N’ Heard in The Island of 6th January, 2026, and I totally agree with his comments.

Diliup: “AI avatars will take over these concerts. It will take some time, but it surely will happen in the near future. Artistes can stay at home and hire their avatar for concerts, movies, etc. Lyrics and dance moves, even gymnastics can be pre-trained”.

Yes, and that would certainly be unsettling as those without talent will make use of AI to deceive the public.

Right now at most events you get the stage crowded with lyrics stands and, to make matters even worse, some of the artistes depend on the smartphone to put over a song – checking out the lyrics, on the smartphone, every few seconds!

In the good ole days, artistes relied on their talent, stage presence, and memorisation skills to dominate the stage.

They would rehearse till they knew the lyrics by heart and focus on connecting with the audience.

Smartphones and lyrics stands: A common sight these days

The ability of the artiste to keep the audience entertained, from start to finish, makes a live performance unforgettable That’s the magic of a great show!

When an artiste’s energy is contagious, and they’re clearly having a blast, the audience feeds off it and gets taken on an exciting ride. It’s like the whole crowd is vibing on the same frequency.

Singing with feeling, on stage, creates this electric connection with the audience, but it can’t be done with a smartphone in one hand and lyrics stands lined up on the stage.

AI’s gonna shake things up in the music scene, for sure – might replace some roles, like session musicians or sound designers – but human talent will still shine!

AI can assist, but it’s tough to replicate human emotion, experience, and soul in music.

In the modern world, I guess artistes will need to blend old-school vibes with new tech but certainly not with smartphones and lyrics stands!

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