October 06, Colombo (LNW): The Consumer Affairs Authority (CAA) has initiated legal proceedings against 135 traders across Sri Lanka for allegedly selling rice at inflated prices, as part of a broader clampdown on unethical market practices amid rising concerns over food affordability.
According to the CAA, the cases stem from raids conducted islandwide over the past month, targeting both individual vendors and businesses suspected of price manipulation or hoarding of essential food items.
The authority confirmed that enforcement operations are ongoing, particularly against those attempting to profit by concealing rice stocks or violating price controls.
Under the Consumer Affairs Authority Act, traders found guilty of overpricing rice may face significant penalties. Individuals risk fines ranging from Rs. 100,000 to Rs. 500,000, imprisonment for a period of up to five months, or both.
In the case of corporate entities, penalties can range from Rs. 500,000 to Rs. 5 million, with the added possibility of custodial sentences and the confiscation of goods found to be hoarded or sold unlawfully.
The CAA also issued a stern warning to repeat offenders, stating that courts are empowered to impose double the standard fine and extend prison terms to a maximum of one year upon a second conviction.
