Legal Action Launched Against Traders Amid Crackdown on Rice Hoarding

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By: Isuru Parakrama

March 29, Colombo (LNW): Sri Lankan authorities have initiated legal proceedings against a number of traders accused of stockpiling rice and withholding supplies from ordinary consumers.

The cases are being filed before the Maligakanda Magistrate’s Court following a series of enforcement நடவடitions carried out by the Consumer Affairs Authority (CAA), acting on public complaints about irregular trading practices.

One such operation took place earlier today at the Kirulapone Public Market, where officials uncovered alleged attempts to manipulate supply. Investigators reported that certain vendors were deliberately restricting access to rice stocks, choosing instead to channel supplies to bulk buyers.

In one instance, a trader holding a valid retail licence was found to be diverting rice exclusively to hotels, bypassing regular retail customers altogether. Authorities view this as a serious breach of trading regulations, particularly at a time when demand for staple foods remains high.

The inspection reportedly led to a tense confrontation between enforcement officers and a shop owner, highlighting the growing friction between regulators and some segments of the trading community.

The CAA has intensified its island-wide inspections in the run-up to the festive season, with a particular focus on essential commodities such as rice, sugar, and flour. Officials warn that those found hoarding goods, refusing to sell, or inflating prices unfairly will face strict legal consequences.

Consumers have also been encouraged to report suspicious market behaviour, as the government steps up efforts to stabilise food distribution and protect household budgets during a period of economic pressure.