• No substantial increase in prices of essential goods observed in local market
• Arbitrary increase in prices unlikely
• Ministry will continue to closely monitor market conditions

No significant increase in the prices of essential goods in the market that would warrant Government intervention through price controls has been observed so far, according to the Ministry of Trade, Commerce, Food Security, and Co-operative Development. 

Speaking to The Sunday Morning Business, Ministry Secretary K.A. Vimalenthirarajah noted that despite concerns and rumours of price hikes driven by recent external market shocks, there had been no substantial increase in prices observed in the local market.

He further stated: “As of Tuesday (31 March), we observed that the prices of most goods are lower than the levels seen during the previous New Year season. The only exception is dhal, and even that is now declining.”

Accordingly, he noted that there was no necessity at present for the Government to impose price controls such as Maximum Retail Prices (MRPs) or introduce cost-reflective pricing mechanisms.

Vimalenthirarajah further explained that it was unlikely that traders would arbitrarily increase prices, as such actions would negatively impact demand. 

Given the high demand typically seen during the New Year season, he noted that traders were expected to avoid any measures that could disrupt seasonal sales, adding that this situation had been conveyed to the ministry by representatives of various sectors during recent discussions.

Regardless, he emphasised that the ministry would continue to closely monitor market conditions. While isolated instances of arbitrary price increases by certain retailers had been observed, Vimalenthirarajah assured that the Consumer Affairs Authority (CAA) would take appropriate action against such practices.

Commenting on milk powder, the Secretary assured that there were no shortages in supply, adding that importers had assured the Government that no price increases would be implemented until the conclusion of the New Year season.