ECONOMYNEXT – Sri Lanka will announce a maximum retail price for cement if companies do not comply with a reasonable price, Minister of Trade Nalin Fernando has said.
“We will announce a maximum retail price once the companies discuss this,” Fernando told reporters on Tuesday.
This was after cement companies announced they would be reducing prices by 150 rupees to 2,250 rupees for a 50 kilo bag.
“I don’t accept this reducing the price by 150, I want the maximum retail price to be 2,000-2,500,” Fernando said.
“We will announce a maximum retail price as soon as the companies discuss,” Fernando said. “If they do not comply, the consumer affairs authority can give a maximum retail price. But I hope they will act to the benefit of the consumer.”
Colombo think-tank Advocata has said that building material oligopolies have emerged due to import restrictions, and has resulted in anti-competitive practices in the Sri Lankan market.
A key reason for high costs was import protection given to tiles, aluminium, steel and cement.
Read more
Most Sri Lankans cannot afford a house amid state-protected building material oligopolies: study
“The maximum retail price and the price they sell the cement at has a huge difference,” Fernando said.
“Sometimes, they sell a bag of cement at 1,950 even though the maximum retail price is 2,400. Therefore, within 400 rupees, they can sell more to any customer. So therefore, the representative or the hardware can earn an unnecessary income.” (Colombo/Jun4/2024)