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‘Runaway cost of living: Govt. rendered itself impotent by doing away with price controls’

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Ex-CAA official: “Trade, Consumer Protection ministries reduced to nameboards’

By Shamindra Ferdinando

Co-operative Services, Marketing Development and Consumer Protection State Minister Lasantha Alagiyawanna said that the government could not interfere with the Milk Food Importers’ Association decision to increase the prices of imported powdered milk.

The SLFPer pointed out that price control on imported milk food had been done away with in early November. Therefore, the Consumer Protection Ministry couldn’t interfere with their decision, the Gampaha District lawmaker said, adding he was informed of the price increase.

MP Alagiyawanna said so when The Island sought his response to the Milk Food Importers’ Association announcement on Thursday (30) as regards the price increase with effect from Dec 30 midnight. According to their spokesperson Asoka Bandara, the price of a kilo of packeted milk powder would cost Rs 1,345 and 400 grammes pack Rs 540.

State Minister Alagiyawanna said that a kilo of imported milk powder and 400 grammes pack had cost Rs. 1,195 and Rs 480 before.

State Minister Jayantha Samaraweera on behalf of the National Freedom Front (NFF) recently urged the government to re-impose price controls or face the consequences. Lawmaker Samaraweera alleged that duty concessions that had been granted to various importers, including the Milk Food Importers’ Association didn’t benefit the consumers. The Kalutara District MP cited the reduction of duty on imported sugar in Oct 2020 as a case in point.

Having imposed emergency regulations that had been imposed on Aug. 30, 2021 to prevent hoarding and the termination of the Office of Commissioner General of Essential Services, the government on Nov 04, 2021 removed the retail price cap on several essential commodities through a gazette notification. The retail prices of dhal, sugar, sprats, green gram, potatoes, big onions, canned fish, chickpeas, wheat flour, full cream milk powder, dried fish, coconut, chicken and maize were removed.

The new gazette notification has also removed the maximum price limit of Rs. 1,500 for a 400g packet of sausages and Rs. 1,500 for a kg of mackerel. In addition to that the Special Commodity Levy of Rs.65 per kg of imported rice has been reduced to 25 cents for the next six months.

As per the powers vested in terms of the section 2 of the Public Security Ordinance, President Rajapaksa declared emergency regulations formulated as per the section 5 on essential food supply, with effect from midnight August 30, 2021.

Authority (CAA) Thushan Gunawardena questioned the justification of maintaining the Consumer Protection Ministry as well as the CAA at the taxpayers’ expense in the absence of what he called price control mechanism. “Consumers are fleeced. The government brazenly provides tacit support to unscrupulous business enterprises. On one hand, duty concessions are granted. And on the other hand price controls are done away with. The hapless public has no protection at all,” Gunawardena said.

The cabinet minister in charge of trade Bandula Gunawardena and State Minister of Consumer Protection Alagiyawanna should quit because they were jobless, Gunawardena said adding that there had never been a previous instance of any particular government altogether abolishing price controls.

Outspoken ex-official Gunawardena said that the appointment of a senior serving army officer Maj. Gen. M. D. S. P Niwunhella as Commissioner General of Essential Services for a short period was nothing but a joke. Gunawardena pointed out that having targeted some of those who hoarded sugar and rice and promised an uninterrupted supply of essential items at a reasonable price, the government had done away with price controls, abolished the Office of Essential Services and reduced the trade and consumer protection ministries to just name boards.

Responding to another query, Gunawardena pointed out that the recent media statements that had been attributed to State Minister Samaraweera revealed that the government had done away with price controls without consultations with constituents of the ruling coalition. “In fact, the current dispensation does not seem to believe in proper consultations as regards any matter. There cannot be a better example than the Yugadanavi Power plant share sale agreement,” Gunawardena said.

Asked what the government would do in case the Milk Food Importers’ Association exploited the consumers, State Minister Alagiyawanna said that the government could always resort to price controls. Asked to explain, the lawmaker said that in the case of milk food prices, before the association decided on Rs 150 per kilo increase, it was sold at Rs 1,195. “We are in a position to ascertain how the world market prices as well as shipping charges are impacting on imports,” MP Alagiyawanna said.



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India’s External Affairs Minister meets Sri Lanka PM

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India’s External Affairs Minister, Dr. Subramaniam Jaishankar, met with the Prime Minister of Sri Lanka, Dr. Harini Amarasuriya, on 23 December at Temple Trees, during his visit to Sri Lanka as the Special Envoy of Indian Prime Minister Shri Narendra Modi.

The meeting took place as part of the official visit aimed at holding discussions with Sri Lanka’s top leadership, at a time when the nation commenced reconstruction efforts following the devastation caused by Cyclone Ditwah.

During the discussions, the Minister of External Affairs of India reaffirmed readiness to extend support for Sri Lanka, including assistance in rebuilding railways, bridges, and strengthening of the agricultural sector in the country. He also highlighted the importance of having effective systems in place to respond to disaster situations, supported by strong legislative, administrative, and institutional frameworks. Both sides reviewed ongoing relief efforts and explored avenues to further strengthen bilateral cooperation in disaster response and recovery.

The Prime Minister commended the Government of India for the continued support, noting that the recovery process following the devastation caused by Cyclone Ditwah include beyond immediate relief efforts to long-term measures such as resettlement, and reconstruction of habilitation and infrastructure.

The Prime Minister further stated that steps have been taken to reopen schools as part of the process of restoring normalcy, with close monitoring in place. The Prime Minister emphasized the need to ensure stability, reduce vulnerability, and strengthen protection mechanisms highlighting the solidarity of the people, their strong spirit of volunteerism, and collective action demonstrated during the emergency situation.

The event was attended by the High Commissioner of India Santosh Jha, Additional Secretary (IOR), MEA  Puneet Agrawal, Joint Secretary (EAMO), MEA  Sandeep Kumar Bayyapu, Deputy High Commissioner Dr. Satyanjal Pandey, and representing Sri Lankan delegation, Secretary to the Prime Minister  Pradeep Saputhanthri, Additional Secretary to the Prime minister Ms.Sagarika Bogahawatta, Director General (South Asia), Ministry of Foreign Affairs Samantha Pathirana, Deputy Director, South Asia Division, Ministry of Foreign Affairs Ms.Diana Perera.

[Prime minister’s media division]

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Sri Lanka’s coastline faces unfolding catastrophe: Expert

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Sri Lanka is standing on the edge of a coastal catastrophe, with the nation’s lifeline rapidly eroding under the combined assault of climate change, reckless development and weak compliance, Director General of the Department of Coast Conservation and Coastal Resource Management (DCC&CRM) Dr. Terney Pradeep Kumara has warned.

“This is no longer an environmental warning we can afford to ignore. The crisis is already unfolding before our eyes,” Dr. Kumara told The Island, cautioning that the degradation of Sri Lanka’s 1,620-kilometre coastline has reached a point where delayed action could trigger irreversible damage to ecosystems, livelihoods and national security.

He said accelerating coastal erosion, rising sea levels, saltwater intrusion and the collapse of natural barriers, such as coral reefs and mangroves, are placing entire coastal communities at risk. “When mangroves disappear and reefs are destroyed, villages lose their first line of defence. What follows are floods, loss of homes, declining fisheries and forced displacement,” he said.

Dr. Kumara stressed that the coastline is not merely a development frontier but the backbone of Sri Lanka’s economy and cultural identity. “More than half of our tourism assets, fisheries and key infrastructure are concentrated along the coast.

If the coast fails, the economy will feel the shock immediately,” he warned.

Condemning unregulated construction, illegal sand mining and environmentally blind infrastructure projects, he said short-term economic interests are pushing the coastline towards collapse. “We cannot keep fixing one eroding beach while creating three new erosion sites elsewhere. That is not management—it is destruction,” he said, calling for science-driven, ecosystem-based solutions instead of politically convenient quick fixes.

The Director General said the Department is intensifying enforcement and shifting towards integrated coastal zone management, but warned that laws alone will not save the coast. “This is a shared responsibility. Policymakers, developers, local authorities and the public must understand that every illegal structure, every destroyed mangrove, weakens the island’s natural shield,” he added.

With climate change intensifying storms and sea surges, Dr. Kumara warned that Sri Lanka’s vulnerability will only worsen without urgent, coordinated national action. “The sea has shaped this nation’s history and protected it for centuries. If we fail to protect the coast today, we will be remembered as the generation that allowed the island itself to be slowly eaten away,” he went on to say.

By Ifham Nizam

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SOC examines proposed amendments to the Microfinance and Credit Regulatory Authority Bill

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SoC meeting underway (pic courtesy parliament)

The Sectoral Oversight Committee (SoC)on Economic Development and International Relations recently examined the Microfinance and Credit Regulatory Authority Bill and the proposed amendments thereto.

The SoC met in Parliament under the chairmanship of Member of Parliament Ms. Lakmali Hemachandra, (Attorney at Law). A group of officials representing the Central Bank of Sri Lanka, the Department of Development Finance of the Ministry of Finance, Planning and Economic Development, and the Legal Draftsman’s Department participated in the meeting.

The Microfinance and Credit Regulatory Authority Bill was presented to Parliament for its First Reading on 26.11.2025. Accordingly, the Committee held an extensive discussion on the amendments that have been proposed to the Bill. The Chair of the Committee, Hon. Member of Parliament Ms. Lakmali Hemachandra, (Attorney at Law) stated that it is important to give careful and further consideration to this Bill and that discussions on the proposed amendments will be held again on a future date.

Members of Parliament Lakshman Nipuna Arachchi, Thilina Samarakoon, Nilanthi Kottahachchi, Attorney at Law, Sagarika Athauda, Attorney at Law, Suranga Ratnayaka, and Wijesiri Basnayake also participated in this Committee meeting.

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