Minister of Trade, Commerce, and Food Security Nalin Fernando highlighted that as a result of President Ranil Wickremesinghe's prudent decisions, the country successfully saved approximately 350 million US dollars that would have been otherwise spent on rice imports by the government.
Furthermore, Minister Fernando emphasized that significant efforts have been made to revise the out-dated Consumer Affairs Authority Act, which has been in effect for two decades, in order to safeguard the rights of consumers.
The minister also expressed that legal measures will be taken against companies manufacturing non-essential food items that fail to offer relief to the public despite benefiting from government tax concessions.
Mr. Nalin Fernando emphasized the importance of displaying the maximum price of every product sold within the country and emphasized that legal action will be taken against companies and manufacturers who fail to comply with this requirement.
Minister Nalin Fernando made these remarks during his participation in a press conference organized by the Presidential Media Centre June, (22), focusing on the theme 'Collective path to a Stable Country'.
Expressing his views at the media briefing, Minister Nalin Fernando further said,
When President Ranil Wickremesinghe assumed office, our country was grappling with numerous major crises. It was during this challenging period that he entrusted me with a highly sensitive ministry dedicated to the well-being of our people. We were facing severe shortages of certain food items, with supplies lasting only two to three days. The agricultural sector had suffered a significant decline, leading us to resort to unprecedented levels of rice imports. This situation had never been witnessed before in our history.
The previous government's fertilizer policy directly contributed to the food crisis we faced. However, the President took the necessary steps to reinstate a program providing fertilizer to our farmers. Thanks to these appropriate decisions, there will be no need for future rice imports. This achievement has resulted in savings of approximately 350 million dollars that were previously spent on rice imports. We are now utilizing these savings to import essential goods for the benefit of our people.
Presently, our import system is functioning efficiently. We have strengthened the issuance of Letters of Credit required by importers. People often inquire why the market situation has returned to normal while the prices of goods have not decreased accordingly. Our aim is to reduce food inflation to single-digit figures by December. Compared to 2022, the prices of goods have already decreased. For instance, the price of onions, which was once Rs. 314 per kilo, has now dropped to Rs. 120. Similarly, the prices of various essential items, including potatoes, white sugar, red lentils, chickpeas, and white beans, have decreased. The direct importation of these goods has provided such relief to our people. However, a few local industrialists have yet to take steps to pass on the benefit of lower prices to the consumers.
Despite receiving concessions from the government, these industrialists have the capacity to reduce prices even further. The Consumer Authority has been instructed to ensure that prices are not unjustifiably maintained in the future. Additionally, we are in the process of establishing maximum retail prices for tiles, cement, and bathroom accessories. It is our mandate to set a maximum retail price for every product sold within our country. The import reduction of tiles led to an increase in their prices. By strengthening the value of our currency against the dollar, we can introduce competition in this regard. I have urged them to prepare for this challenge.
Through the measures implemented by our government, we have created an environment conducive to providing relief to consumers. I have conveyed to these companies the necessity of explaining their price calculations when setting retail prices for cement in the future. The maximum retail price should be determined by considering production costs, profits, and the trader's margin.
Today, as the Consumer Affairs Authority, our focus is on informing consumers rather than conducting raids. Proper price displays can go a long way in addressing pricing concerns. I have instructed the Consumer Affairs Authority to assess whether price displays are being carried out effectively.
To tackle the issue of cost of living, we need to take measures to reduce production costs. Manufacturers should be encouraged to adopt new technologies. We are currently preparing a report to safeguard consumer interests, enabling us to provide goods at lower prices through local producers. While lentils are entirely imported, we must strive to produce locally what is feasible. It is crucial to recognize and work on these aspects.
Managing the interests of importers, producers, and consumers is a challenging task. After two decades, we have secured approval to amend the Consumer Authority Act. The Act has now been forwarded to the Attorney General's Department, which will contribute to protecting consumers on a larger scale.
We need to devise programs that facilitate the production of local goods at affordable prices. The government has undertaken significant efforts to strengthen the country's economy while ensuring consumer protection. I have advocated for the repeal of the archaic Bread Ordinance of 1864. The Ministry of Health, the Department of Weights and Measures, and the Ministry of Trade are hindered by the limitations of this Act. The Ministry of Health oversees quality standards, while the Weights and Measures Department checks weights. The Bread Ordinance is divided into three parts. We are actively working towards its repeal and the introduction of a new bread act. Besides rice, wheat flour is widely consumed by the population. Therefore, we should pay more attention to the price of wheat flour. Fortunately, the prices of various related products, including bread, have already decreased. We anticipate further price reductions in the coming days.
To effectively lower the prices of goods, we require the support of other relevant ministries. Moreover, companies that fail to provide relief to consumers will face strict legal consequences. Some companies in our country have not passed on concessions to consumers despite benefiting significantly from the government. They have enjoyed extraordinary profitability. It is crucial for them to consider the welfare of the people. If we aim to develop our nation, we must also reduce the prices of non-essential goods. Construction activities need to resume across the country, and every citizen should have the opportunity to build a house and have access to proper sanitation facilities. Therefore, we anticipate taking legal action against companies that unreasonably increase prices.
President’s Media Division (PMD)
