No permission to increase powdered milk: Finance Minister

Nov 04, 2016 (LBO) – Sri Lanka’s Finance Minister Ravi Karunanayake says that the prices of powdered milk will not be increased for whatever reason following the recent imposition of VAT on imported powdered milk.

VAT was imposed on imported powdered milk with effect from November 1st under the new VAT Amendment Act.

The Finance Ministry however said the powdered milk importers cannot increase prices without obtaining approval from the government as maximum prices have been declared already for different varieties of powdered milk.

“It has been informed that the powdered milk importers have said that they want to discuss with the finance ministry either to increase the prices based on the VAT imposition or to get VAT on powdered milk exempted,” the ministry said.

“The government will look into providing any other alternative relief to importers after ascertaining whether there is any truth in the complaints made by powdered milk importers.”

Finance Minister Ravi Karunanayake says that the prevailing controlled prices of powdered milk which has been determined by the Consumer Affairs Authority will not be changed for whatever reason.

The current maximum controlled price of a packet of 400 grams of powdered milk is 325 rupees while a packet of a kilogram of powdered milk should be sold at 810 rupees.