The prevailing economic climate is a nightmare to ordinary Sri Lankans. On the one hand, the prices of goods and services have skyrocketed with little intervention from the Government to regulate the prices and the quality of goods and services. On the other hand, despite these price hikes, most Sri Lankans’ income has remained stagnant, and in many cases, plummeted. To make matters worse, substandard goods, black market activities, and various scams have also become more common than the pre-economic crisis era. Since 2020, Sri Lankan families, especially those in vulnerable communities, have not been able to have a ‘joyful’ Avurudu table, with the current price gouging that’s ongoing, it is unlikely that they will this year too.

What connects all these issues is the fact that ultimately, it is the ordinary consumers that get affected, while producers, importers, intermediaries, distributors, and sellers somehow find a way to pass on the losses and increased costs to ordinary consumers. This has been going on for a long time. However, given the state of the economy, it is high time that the Government proactively takes measures to protect consumers, because, without consumers, not only markets but the entire economy would collapse.

One of the main institutions entrusted with this task is the Consumer Affairs Authority (CAA), and it would not be an exaggeration to state that in the current economic and market conditions, the CAA’s contribution to managing the above-mentioned market conditions is now more important than before. However, how capable the CAA is in fulfilling that duty is questionable, as has been pointed out in a recent National Audit Office (NAO) report.

Noting various irregularities and inadequacies in the CAA, the NAO report put forward a number of recommendations to address those concerns. One of them was accelerating the works of amending the CAA Act No. 9 of 2003 to suit the requirements of the time. Another recommendation highlighted the necessity of identifying the circumstances and traders exploiting consumers by making unusual profits (based on the data provided in the report) and taking immediate action against them as per the provisions of the Act. The report also paid attention to raids, recommending that the number of raids on traders selling goods exceeding the control price and on importers and wholesalers be increased. Conducting market raids and taking legal action against the importers who do not present information to the CAA to obtain Maximum Retail Price certificates was also recommended. In addition, it was suggested to recommend a suitable price taking into consideration market prices and costs when recommendations are made to impose a control price. Carrying out supervisions about the reasons for not filing cases even if raids were conducted was another recommendation.

What is more, the report’s recommendation section has paid considerable attention to ensuring that the data with regard to raids, registrations, and related activities are stored, updated, and shared appropriately, which can be expected to bring about positive results.

However, it goes without saying that mere laws, regulations, policies, and recommendations are not going to resolve the complex, deep-rooted, and long-drawn-out issues in Sri Lanka’s consumer rights sphere. While irregularities threatening the consumer rights have taken newer forms, dishonest traders have found newer and creative ways to avoid the laws and regulations. At the same time, in many cases, even consumers hesitate to take a stand when their rights get violated because of lack of options in obtaining the goods and services that they need. These and many other practical issues threatening the economic crisis-hit consumers cannot be covered by mere laws, and taking actions against such issues require the CAA to be more creative, proactive, and practical in its operations, especially raids.

In addition, the CAA must take swift, effective and stringent actions against its own corrupt officials. It should also not be complacent about its activities, and look for ways to improve. The CAA must understand that in a context where the Government does not care about the violation of consumers’ rights as it should and when traders do not think twice to take consumers hostage to make profits, the CAA has to take its duty to implement the relevant laws, regulations and policies to the fullest. Such serious commitment would make a considerable difference to the lives of the majority of Sri Lankans in this festive season.

Fixing the many issues within the CAA and challenges they face cannot be done overnight. However, it is clear that legislative reforms and structural changes are essential within the Authority. Perhaps, introduction of Key Performance Indicators (KPI’s) with linked incentives and penalties will help improve the situation. However, what is needed at the core, is an attitudinal change and change in the operational culture of the CAA, where the customer, not the ones that pocket or lethargy, takes priority.