President issues directive to enforce Max Retail Price on rice and other essential items

President Gotabaya Rajapaksa has directed Consumer Affairs Authority (CAA) that immediate steps be taken to enforce the declared Maximum Retail Prices (MRPs).

According to a statement from the President's Media Division, President Rajapaksa directed the CAA to ensure the uninterrupted market supply of essential goods during this festive season.

Recently, Authorities has gazetted a MRP on rice at Rs. 98/kg. This decision was arrived at by the Cabinet of Ministers having consulted with major suppliers and verified stock positions in the country.

Major millers agreed that they will mark this price on their rice sacks and ensure their retail distribution network will sell rice at this price. However, there were complaints that this was not being complied with in several places.

Therefore, the CAA was instructed to check the market supply situation to deploy a team to check the stock and daily releases at rice milling supply stations.

The President has directed the CAA to initiate immediate action to check the rice suppliers at Pettah and other major markets.

The government has also relaxed the restriction on import of wheat flour with a view to promote market competition and availability of wheat flour at affordable prices particularly in support of urban and plantation working community during this season, a statement from the PMD said.

The government has already reduced VAT rate from 15 percent to 8 percent, removed 2 percent NBT and several other indirect taxes with a view to reduce the high cost-of-living on the one hand and to create business friendly environment to promote supply activities in the country on the other.

Rice millers and traders will also benefit from the removal of Economic Service Charge (ESC) and concessions announced by the Central Bank of Sri Lanka.