• Iran sprats supply hit; SL turns to Maldives, Malaysia to stabilise market
• Govt. engages traders to curb spikes, assures steady supply of essentials

Escalating tensions in the Middle East are impacting the cost of living in Sri Lanka even as authorities hold discussions with stakeholders to prevent a sharp increase in the prices of consumer goods during the upcoming festive season.

Speaking to The Sunday Morning, Deputy Minister of Trade, Commerce, Food Security, and Co-operative Development R.M. Jayawardana said that the Government had engaged with business communities and importers to address potential disruptions and contain price volatility. 

He added that the focus remained on managing market prices and ensuring supply stability, rather than imposing price controls.

Jayawardana claimed that there was no shortage of essential food items at present, despite minor price fluctuations.

“The likelihood of prices increasing by a massive margin is low. Our attempts are to manage market prices right through the festive season. We are trying our best to ensure that the current crisis is not used as an excuse to increase prices significantly,” he said, adding that Lanka Sathosa had also imported significant stocks of essential goods to support market stability.

Despite Sri Lanka’s heavy reliance on imports – around 80% of potatoes and onions, and nearly 100% of dhal – Jayawardana stressed that the Government did not anticipate shortages, citing diversified import sources.

“We import the majority of our goods from countries such as India and Pakistan, along with several others. We do not believe there will be an import barrier significant enough to cause a food shortage,” he said.

Addressing concerns over disruptions to sprats imports from Iran, he said alternative suppliers such as the Maldives and Malaysia could meet the demand.

“Iran is not the only country from which we import sprats. We can increase imports from other countries. Even now, we have stocks available. While the specific quality associated with imports from Iran may be reduced or absent, the supply can be maintained through other sources,” he said.

Jayawardana added that the halt in canned fish imports was a planned policy decision taken last year to promote domestic production.

“There are a number of local manufacturing factories. We are giving them the opportunity to meet the country’s requirements. Importing canned fish is not essential at present,” he said, adding that imports could resume if necessary.

On price controls, he clarified that the Government’s approach was to manage prices through engagement with stakeholders rather than impose regulated pricing, although minor fluctuations may occur.

He further said that multiple committees appointed by the President were working to maintain supply stability, including one led by Minister of Transport, Highways, and Urban Development Bimal Rathnayake focusing on the food supply chain.

“These committees have taken decisions after consulting the relevant institutions connected to the supply network. Stakeholders have agreed to maintain imports and stability, while Lanka Sathosa has intervened by importing goods to prevent shortages,” he said.