August 31, Colombo (LNW): The government has begun talks with importers as higher freight, insurance and other related expenses threaten to push up the cost of goods in the local market.
Deputy Minister of Trade, Commerce and Food Security R.M. Jayawardhana said the continuing conflict in the Middle East had contributed to rising transportation and insurance charges, adding to the financial burden faced by businesses importing essential commodities.
He said the Ministry of Trade, under Minister Wasantha Samarasinghe, was working with importers to explore ways of containing these additional costs and avoiding unjustified increases in retail prices.
Authorities are also relying on state-backed outlets to cushion consumers from the impact of rising costs. The National Cooperative Wholesale Establishment (NCWE) and Lanka Sathosa have been instructed to ensure key household necessities remain available at more affordable prices.
Jayawardhana said Lanka Sathosa had already lowered the prices of a number of essential commodities as part of efforts to maintain competitive pricing and provide consumers with an alternative to higher-priced private outlets.
He maintained that the continued involvement of state-owned retailers was helping to keep competition in the market, making it more difficult for private traders to impose steep price increases without facing competitive pressure.
Meanwhile, consumers have already begun feeling the effects of higher production costs in the food sector. Prima Ceylon (Pvt) Ltd and Serendib Flour Mills (Pvt) Ltd increased the price of wheat flour by Rs. 17 per kilogramme from last Saturday.
The flour price hike is expected to have a knock-on effect across the bakery industry, with producers facing higher costs for bread, buns, short eats and other flour-based products. The latest increase adds to wider concerns over the impact of international developments and rising import-related expenses on everyday household budgets.