Sri Lanka orders imported milk powder price cut after tax reduction

Prices of milk powder at the Global Dairy Trade Auction are at a three-year high, but the Sri Lankan government has cut imported milk powder prices citing a reduction in taxes.

ECONOMYNEXT- Sri Lanka has ordered price cuts on imported milk powder after tax cuts were announced by the government, an official of the price control agency said.

The price of a 1 kilogram packet of milk powder will go down by 40 rupees from 985 rupees to 945 rupees and price of 400 gram milk powder will go down by 15 rupees from 395 rupees to 380 rupees” Rohan Meemanage, assistant director of the Consumer Affairs Authority said.

Meemanage said the cut in milk powder prices comes following tax relief on goods and services.

“Reduction in Value Added Tax by the government is a main reason for us to reduce the prices of imported milk powder” he said.

Even though the general price levels of milk products in the global market reduced by 0.5 percent in the early December from a fortnight ago, the price of milk powder has gone up by 0.1 percent to 3,331 US dollars in 2019, the highest in three years. (Colombo/ Dec 9/ 2019)