News
Tumbling rupee makes seasonal goods pricier
View(s):By Kasun Warakapitiya
Restrictions on imports and the depreciation of rupee against the US dollar are weighing on Christmas sales, traders say.
The rupee is one of the world’s worst performing currencies.
The president of Pettah Textile and Merchants Association, Mohomad Yaseen Haja Najimudeen told the Sunday Times that prices of imported textile products have doubled. “Compared with the years before the pandemic, we make only 25% of sales now. Even during the pandemic we had better sales.’’
Mr Najimudeen said merchants have had to increase the salaries of employees and provide them with lunch, in addition to paying more for electricity, water, and rent.
“Even though the official (US) dollar rate in Sri Lanka is around 371 to 372 (rupees), merchants buy at Rs 400 per dollar. So, clothes bought for dollars have to be sold at high prices to cover costs,” he said.
Electrical items are also expensive and sales have declined.
An owner of an electrical shop, Ranjith Wijesiri Saranga said that very few people come to buy switches, electrical fittings, and wiring.
He said sales of industrial electrical items have greatly reduced as construction projects have stopped.
“I have to pay the salaries of three employees. If this continues, I will close my shop,” he said.
Mr Saranga who maintains an electrical items installation team of 15 employees said that he only calls them to work if customers make requests.
Sales of toys are not a cause of cheer for traders, either.
Mohomad Sameer, manager of a toy shop at Wellawatta, said: “Our expectations of more sales have been shattered. Prices of toys have increased and import restrictions have created a shortage of electric toys and some plastic and rubber toys.’’ Only a few customers have turned up in the past three weeks.
Sri Lankans say many do not have money to celebrate Christmas. The usual year-end family trips, shopping sprees of mothers and daughters are not planned this year.
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- Some electrical shop owners are comtemplating closing shop due to poor business
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- With high prices, tis not the season for toys this time round
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- Scenes at Pamunuwa Maharagama: Clothes bought for dollars have to be sold at high prices to cover costs, say traders. Pix by M.A. Pushpa Kumara
State employee, Chethana Sanjeewa Perera, a bread winner of his family, said the Rs 6,000 plus price tag of a pair of shoes for men, was a surprise.
He said that even the pair of shorts for his three year old son cost between Rs 1,500 and Rs 1,700. His wife had looked at three dresses, but could only afford one. “I came to buy clothes for my wife and son, but I could not shop as I wished because the expenses exceeded our budget.’’
Up and coming singer Sadeepa Diddeniya said that the prices of shoes, dresses, perfume and cosmetics have increased. She said prices of textiles and shoes range between Rs 3,000 and 5,000 while a perfume bottle costs Rs 2,000. “Everything is expensive these days, it’s not easy choosing what to buy.’’
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