ECONOMYNEXT – Sri Lankan customers have started to complain, saying that the promised price reduction of rice packets, fried rice, and kottu by the Canteen Owners Association has not been implemented.
Customers claim that the owners are misleading the public to get more business.
Last week, the Canteen Owners Association reduced the price of rice packets, fried rice, and kottu by 20 percent, as fuel and gas prices decreased. According to the association’s chairman, Asela Sampatha,
“The prices were reduced because the fuel prices and gas prices came down based on global levels.”
State-run Litro Gas Lanka Limited reduced cooking gas prices on April 04, in line with the reduction in global LP gas prices. The commonly used 12.5 kg gas cylinder was reduced by 1005 rupees to 3,738 rupees, while the price of a 5 kg gas cylinder was reduced by 402 rupees to 1,502 rupees. The price of a 2.3 kg gas cylinder was reduced by 183 rupees to 700 rupees.
However, consumers who were disappointed said that the new prices have not been implemented, and vendors have given several reasons to back up why the price remains the same.
“When you go to the shop and ask why the prices are the same, they will talk about electricity, eggs, and water. They don’t adjust prices to what has been reduced,” said Pushpa Kanthi, a customer in a restaurant at Kottawa.
When addressing these issues to food vendors, they claim that prices cannot be reduced immediately because they are unaware if prices will remain the same. If prices were to be reduced immediately, it would affect indirect costs such as rent and lease.
“When it’s time to increase prices, they will do it from the time they hear the word increase. When it comes to decreasing price, we need to stop buying products so there will be a fall in price,” Kanthi further said.
Sri Lanka slashed fuel prices on March 29, after a protest by trade unions of state-run fuel retailer Ceylon Petroleum Corporation (CPC), resulting in queues at filling stations due to supply disruption.
The price of Petrol 92 Octane was slashed by 15 percent or 60 rupees to 340, 95 Octane 95 was reduced by 26.5 percent or 135 rupees to 375, Auto Diesel by 19.8 percent or 80 rupees to 325, and kerosene by 3.3 percent or 10 rupees to 295.
“Fuel prices and gas prices have reduced, so obviously food prices should decrease. Two main factors have reduced in price, but sellers don’t reduce prices,” said J K Jayakantha, a mason constructor and a frequent lunchtime buyer at a food outlet based in Pilyandala.
“They say these big percentages, and when we go to the store, those percentages are nowhere to be seen,” Jayakantha went on to say.
Sri Lanka has seen falling inflation since September 2022. Inflation for February sits at 53.6 percent, while the prices of essential goods in the market have been decreasing due to the daily decrease in the value of the US dollar against the rupee. (Colombo/Apr06/2023)