"Further a total 2,000 metric tonnes of finished products are held up in factories with the possibility of deterioration of quality and 50,000 metric tones of crude vegetable oil are idling in storage tanks from the first week of June," the association said in a statement on Tuesday.
Ten local factories produce the palm oil based product, with four others producing similar product bakery shortenings. All suspended operations since June this year.
Local manufacturers say they are unable to meet financial and loan commitments to banks and manage fixed costs, such as salaries for over 3,000 employees.
India unilaterally capped duty free exports of vanaspati from Sri Lanka, restricting exports through a state owned agricultural marketin