Sri Lanka’s Ministry of Trade, Commerce, Food Security and Co-operative Development on Tuesday announced price reductions on 18 essential food items sold through the state-owned retail network Lanka Sathosa, with the new prices taking effect from Wednesday, June 10.
The ministry said the move was aimed at easing the cost-of-living burden on consumers amid rising global market prices linked to ongoing tensions in the Middle East. The revised prices will be lower than prevailing wholesale rates in Colombo’s Pettah market for selected items.
Items covered under the reduction include big onions, white sugar, lentils, cowpea, chickpeas, green gram, local cashew nuts, milk powder, red raw rice, red Nadu rice, Samba rice, white Nadu rice and Ponni Samba rice, among other essential commodities. The ministry did not publish the full revised price list with the announcement.
The cuts come as the rupee has weakened to Rs. 337.00/75 against the US dollar, pushing up the import bill on a basket that is still heavily reliant on overseas purchases for staples such as sugar, lentils and milk powder. The Central Bank’s surprise 100-basis-point policy rate hike on May 26 was triggered in part by the inflation pass-through risk from precisely this combination of weaker rupee, higher monthly fuel-import bill and Middle East-driven food and energy prices.
Lanka Sathosa typically uses its state-distribution leverage to discount essentials ahead of festival weeks or during cost-of-living crises. Tuesday’s announcement is the largest single-day price-cut package at the network this year.
