Salt Crisis Deepens as Container Delays Spark Monopoly Fears

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By: Staff Writer

July 28, Colombo (LNW): Amid a national salt shortage triggered by reduced production in the country’s main salterns, Sri Lanka has turned to salt importation as a short-term solution. However, ongoing delays in the release of salt containers from Customs, combined with allegations of preferential treatment and price manipulation, have raised fresh concerns over market fairness and transparency.

Sri Lanka began importing salt in early 2025 in response to a severe drop in domestic production caused by extended periods of rain and underdeveloped infrastructure at several major salterns including Hambantota, Elephant Pass, and Puttalam. The state initially facilitated imports through public-private partnerships to stabilize supply and prevent a looming crisis. However, what began as a temporary measure has evolved into a controversial issue, particularly around the release of imported salt containers from Customs.

According to reliable sources, although authorities announced that all salt containers shipped up to June 10 would be cleared, only six containers shipped on June 12 have reportedly been released. This has led to discontent among other importers, especially those whose consignments were shipped around the same dates but remain held at the port.

Several affected importers are demanding explanations as to why only these six containers were released while others are still detained. They allege that Customs has unfairly prioritized certain private companies, raising questions about market manipulation and lack of transparency.

Meanwhile, demurrage charges on the unreleased containers are accumulating daily, and some importers warn they may be forced to abandon their shipments altogether if delays persist. If these containers are declared abandoned and taken over by the state (rajasanthaka), the government may auction them—potentially allowing previously favored businesses to repurchase them at lower prices and resell at a profit.

Concerns have also surfaced that the company which received the six cleared containers may be attempting to establish a monopoly in the salt market. Industry observers fear this could further distort pricing, especially at a time when local production is just beginning to resume in Hambantota and other salterns.

In parallel, private sector salt companies have increased retail prices over the past two months, citing rising import costs, storage fees, and demurrage. However, consumer groups argue that these price hikes are unjustified and exploitative, especially when the government is subsidizing import efforts to ease shortages.

With the threat of further price increases and possible market monopolies, stakeholders are urging authorities to ensure transparent handling of salt imports, equitable container clearance, and strong regulation to protect both importers and consumers.

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