The Essential Food Importers’ Association has warned consumers to brace for price increases on several imported staples, including sugar, dhal, and rice, as the continuous depreciation of the Sri Lankan rupee and the strengthening US dollar drive up costs throughout the supply chain.
The association said the impact of the currency movement would be felt at the retail level within weeks as existing stocks are depleted and importers replenish at current exchange rates.
The warning comes as the rupee reached a record selling rate of Rs. 346.50 this week — the highest in the current cycle — and as milk powder prices were also revised upward in recent days. Consumer groups have expressed concern that staple food costs, which had been relatively stable in recent months, are now facing a new wave of upward pressure.
Sri Lanka imports substantial volumes of sugar, dhal, and certain rice varieties to supplement domestic production. All three commodities are procured in US dollars, meaning any depreciation of the local currency directly raises landed costs for importers, pressure that is typically passed on to traders and consumers.
The government has urged the public to reduce consumption of imported goods as part of its response to the dollar shortage, while regulators have continued price control enforcement actions against traders found selling goods above the maximum retail price.
