News
As rupee value rises quick measures to bring down prices
View(s):- Price control likely if super-profit-earning traders fail to act responsibly
By Damith Wickremasekara
With the rupee set to appreciate further against the US dollar, the Trade Ministry has been directed to formulate measures to ensure that the benefits are passed on to consumers of imported goods, including food items.
A senior Treasury official told the Sunday Times that within the next two months, they expected the foreign exchange rate to appreciate to Rs 280 for a US dollar.
He said if the traders fail to reduce the price of imported goods with the proposed new measures, the government may have to take tough measures, including the imposition of price control on goods.
The official said the increase in foreign remittances and income generated from tourism had been among the contributing factors to the rupee’s appreciation.
The Sri Lankan rupee appreciated by 4.4% against the US dollar during the period up to February 29 this year, according to the Central Bank of Sri Lanka.
The Trade Ministry will tomorrow seek Cabinet approval for a proposal aimed at increasing competitive trading for imports of commodities including flour, sugar, onions, dhal, and milk food in a fresh bid to keep prices low in the markets.
The proposal seeks approval to give wide publicity to the prices of goods at the time of import, time of release from the port, and final prices when the goods reach the local markets to provide the maximum benefit to the consumers, Trade Ministry Secretary Ministry A.M.P.M.B. Atapattu told the Sunday Times.
He said the decision had been taken after market analysis showed that despite the exchange rate of the US dollar dropping over recent months against the rupee, the benefit of it had not been passed on to the customers with the prices remaining high.
“Some of the traders are keeping an extra-super profit by failing to adjust prices,” he said.
Mr. Atapattu said the Finance Ministry had directed the Trade Ministry to work out a system where the benefits of the reduced import prices were passed on to the consumers.
Accordingly, every Tuesday, the prices of commodities would be publicised, enabling consumers to gain knowledge of the market prices and other traders to enter the import market to ensure the prices of goods drop automatically.
The Trade Ministry this week invited the main importers and briefed them about the move.
A senior Treasury official said that the new directive was issued, taking into consideration the further appreciation of the rupee against the US dollar and with the objective of passing on the benefit to the people.
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