Serendib Flour Mills hikes prices driven by challenging external factors

Monday, 18 November 2019 02:29 - - {{hitsCtrl.values.hits}}

Serendib Flour Mills, one of the most trusted wheat flour manufacturers in Sri Lanka, is announcing an increase of Rs. 8 in the selling price of its wheat flour products with effect from 16 November midnight due to existing uncontrollable external factors.

The company was compelled to take this necessary step due to a variety of longstanding external factors. First among them is the drastic depreciation of the Sri Lankan Rupee (LKR) against the US Dollar over the past months. On 1 January 2018, the USD rate was Rs. 153.50 while today it has gone up to Rs. 181.00, which amounts to a significant Rs. 27.50 depreciation during this period. Secondly, the price of wheat grain and freight in the global market has shown a 15% increase during this period. Thirdly, is the increase due to inflation and packing material costs where the Central Bank of Sri Lanka statistics list the annual inflation at approximately at 4%.

Expressing his views on the challenging scenario, Head of Marketing and Communications Kalinga Wijesekera stated, “At Serendib Flour Mills, our mission is ‘Nourishing the Nation’ and we have been doing that for over 10 years. Unfortunately, today we are facing various challenges due to several external factors. We are legally not bound by any price controls as per the agreement entered into with the Board of Investment of Sri Lanka (BOI). Additionally, while not legally required to do so, we have followed the Consumer Affairs Authority Act throughout our journey in Sri Lanka. However, the Consumer Affairs Authority has regrettably failed to respond favourably to the genuine grievances of the company communicated in the price increase applications submitted by us over a period of one year, starting from 26 November 2018. It must be made clear that the paramount reason in taking this decision to increase the price of our wheat flour products is to avoid the collapse of the flour industry which will undoubtedly lead to food scarcity in the country and also loss of employment to many Sri Lankans.”

Serendib Flour Mills Ltd. is a BOI-approved flagship project funded by a renowned UAE investor the Al Ghurair, which brought in an initial investment of over Rs. 8 billion. In addition to assuming the responsibility of maintaining food security in Sri Lanka, the investor has greatly contributed towards creating and maintaining sizable employment opportunities for skilled and unskilled workers in Sri Lanka. Serendib Flour Mills provides high quality, nutritious and a wide variety of wheat flour products to bakers, eateries, hotels, households, industries and consumers across Sri Lanka. The company uses only premium wheat grains from the best wheat producing countries from around the world, combined with the latest advancements in Swiss Buhler technology and the expertise of a world-class team to deliver products that are fresh, wholesome and rich in nutritional goodness. Operating from a state-of-the-art milling facility at the Colombo Port, Serendib Flour Mills adheres to the highest standards of quality and safety. The company has received ISO 9001:2015, ISO 14001:2015, ISO 22000:2005, FSSC 22000, BS OSHAS 18001:2007 certifications and also makes continuous efforts to minimise its impact on the environment by reducing greenhouse gas emissions and waste whilst championing energy and water conservation throughout its operations.