The Milk Powder Importers’ Association has announced an increase in the prices of powdered milk, citing exchange rate fluctuations and prevailing market conditions, as the rapid depreciation of the Sri Lankan rupee continues to drive up the cost of imported essentials.
The price of a 400-gram packet of powdered milk has been raised by Rs. 50, while a one-kilogram packet will rise by Rs. 125, the Association said. The revised prices apply to powdered milk packaged on or after 20 May, according to The Island.
Industry sources said prices of sugar, dhal and rice are also expected to rise as importers pass through higher dollar-denominated input costs. The Essential Food Commodities Importers and Traders Association (EFITA) did not respond to queries on the broader basket, The Island reported.
The announcement is the first formal price hike by the Milk Powder Importers’ Association in the current rupee cycle and represents the most direct consumer-level transmission of the past month’s currency weakness. The rupee has been identified as Asia’s worst-performing currency in May, while exporters have warned that continued depreciation carries long-term competitiveness risks.
Sources cited by The Island noted that Sri Lanka spent close to USD 600 million on vehicle imports in the first quarter of 2026, which on a full-year run-rate would reach about USD 2.4 billion and worsen pressure on foreign currency reserves. CBSL Governor Nandalal Weerasinghe earlier this week framed the Q1 vehicle import outflow as a necessity-versus-policy choice.
The rising fuel import bill — driven by the West Asia conflict and Hormuz shipping disruption — has further compounded foreign currency demand and is the central driver behind the rupee’s accelerating slide.
Source: The Island.
