Sri Lanka plans price formula for milk powder

ECONOMYNEXT – Sri Lanka’s price control agency will start a formula for milk powder, taking into account costs and exchange rate fluctuations, after controls led to shortages earlier in the year.

Price controls forced smaller suppliers to halt imports and larger suppliers to run losses as the rupee collapsed.

The Cabinet of Ministers had approved a proposal by Agriculture, Animal Husbandry and Fisheries Minister P Harrison to implement the formula through the Consumer Affairs Authority.

The proposed formula takes into account international prices and exchange rate fluctuations.

Sri Lanka’s monetary instability, from a soft-pegged exchange rate, is one of the key obstacles standing in the way of higher living standards and broader economic freedoms of the people.

Foreign exchange shortages generated by the Central Bank through the over-issue of domestic currency is also used by nationalists to restrict free trade. (Colombo/Mar13/2019-SB)

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