13 December 2019 09:06 am Views - 414
The government will reduce duty on wheat flour imports for a limited period in order to ease the cost of living amid a hike in rice prices, Cabinet Spokesperson Dr. Ramesh Pathirana said.
“The Cabinet has decided to cut import duties on wheat flour for a short period of time to keep prices down during the festival season and ease cost of living,” Pathirana added.
“This will break the monopoly on wheat flour.”
Sri Lanka maintains higher duties on wheat flour imports and lower taxes on wheat grain imports.
Sri Lanka’s wheat grain market is controlled by two multinational millers.
Pathirana said a gazette notice on the new import tax will be notified shortly. However it was not clear for how long the reduced import duties will be maintained.
Meanwhile, rice prices in the market shot up since the new government came into power as several large rice millers, who store the bulk of the rice paddy in Sri Lanka raised prices of their branded rice.
The government plans to release 42, 000 metric tonnes of stored rice to small rice millers to maintain the retail rice prices at Rs.98 per kilogram during the festive season.