Govt. mulls strict measures to rectify prices of imported goods to match rupee appreciation

• Relevant authorities conducting a survey to assess if prices are falling in line with rupee appreciation
• Remedial measures to be recommended if prices of imported goods do not decrease within a reasonable time period
• Traders expected to pass on benefits of rupee appreciation to consumers, particularly those affected by high inflation since April last year

The government is mulling strict measures to rectify the prices of imported goods, if the traders fail to pass down the benefits of the recent appreciation of the rupee against the US dollar to the consumer.
Finance State Minister Ranjith Siyambalapitiya at a meeting held in Ruwanwella yesterday revealed that the Trade and Policy Department of the Finance Ministry and Consumer Affairs Authority are jointly conducting a survey to find out whether the prices of imported goods are falling in the market, in line with the recent appreciation of the rupee against the dollar.
If the survey reveals that the prices are not falling within a reasonable time period, the minister noted that the two state agencies have been tasked with recommending remedial measures to bring down the prices of imported goods. He emphasised that the survey in particular is looking into price movements of building materials, food items, agricultural materials and equipment as well school items.
Given 75 percent of the consumer goods are imported, he stressed that the government expects the traders to pass down the benefits of the rupee appreciation to the consumer who has been battered by high inflation since April last year. Inflation, measured by the mostly-watched Colombo Consumer Price Index (CCPI), slowed to 35.3 percent in the 12 months to April 2023, from 50.3 percent through March. However, measured on a monthly basis, the prices dropped only 1.4 percent in April, after rising 2.9 percent in March. So far during the year, the rupee appreciated by around 16 percent against the US dollar.