Fresh moves to stabilise prices of essential goods

Trade Minister 

Bandula Gunawardena 

• Trade Ministry enters into MoU with CDA to offer coconut at Rs. 75 throughout the year
• 5 large coconuts at a time via Sathosa, whilst providing export quality, ready-to-use coconut milk at Rs. 150 tetra pack
• Trade Minister Bandula Gunawardena hopes to stabilise prices of rice, sugar, tea and other essential commodities soon as well
• Plantation Industries Minister Dr. Ramesh Pathirana expects over $ 1 b income from coconut-based exports this year
• Justifies increase in coconut oil price due to high demand, especially for coconut-based exports

The Government has taken fresh measures to stabilise prices of essential goods amidst shortages due to global and local supply chain issues.  

With food prices rising by a record 21.5% in December, Trade Minister Bandula Gunawardena said the new initiatives would help ease the cost of living on the people. 

The Trade Ministry yesterday entered into a Memorandum of Understanding (MoU) with the Coconut Development Authority (CDA) to sell large coconut at Rs. 75 throughout the year, with an objective of stabilising the prices and to ease burden on the cost-of living.

Accordingly, the pilot project will be conducted in the Colombo district where it has rationed five coconuts per customer at a time via the State-run retail network – Sathosa. For those that opt for ready-to-use coconut milk which is of export quality, a 300 ml tetra pack at Rs. 150 will be made available.

“If there is a price drop in the market, we will reduce it accordingly – but if there is an increase, we will maintain at the same rate without hiking,” he assured.

In addition to coconut, Trade Minister Gunawardena hopes to stabilise prices of rice, sugar, tea and other essential commodities in the near future.

Joining the press briefing Plantation Industries Minister Dr. Ramesh Pathirana said the export of coconut related products was expected to generate over $ 1 billion this year as a result of the higher international market demand.

“There is an upward demand for Sri Lankan coconut and coconut-based products in the world market. This was reflected in our export data last year with over $ 800 million income and as per the five-year forecast, an income of over $ 1.5 billion is expected,” he added.

Dr. Pathirana also justified that the price of coconut oil in the market had soared, putting it down to high demand and increased coconut-based export products.

The Minister refuted claims that the high coconut oil prices were to offset a potential reduction in taxes on palm oil imports.