• Retailers say there would be no growth in industry
• More industries concerned over how to take businesses forward

The electricity tariff hike, which came into effect last Thursday (16), is to bring the growth of the retail sector of the country to a halt, and most industries anticipate severe pressure followed by the tax increase as a result of the prevailing economic crisis in Sri Lanka.

Speaking to The Daily Morning Business yesterday (20), Sri Lanka Retailers’ Association (SLRA) Founder and former Chairman Hussain Sadique stated: “The growth (of the retail sector) will be curtailed; there will not be any growth. It is a crisis, basically.” 

He noted that the impact would be similar to that of a crisis situation as the growth of the sector will be severely curtailed, while, simultaneously, the margins are to be further eroded. 

However, Sadique said that he cannot determine the exact extent of the impact at the moment. Following this tariff hike on retailers, only the evaluation of the repercussions can be observed, he said, responding to a query raised by The Daily Morning Business regarding the impact of the tariff hike. 

He added that the industry might resort to alternative measures to withstand the tide such as the use of generators to preserve energy, reduce costs, reduce working hours, etc.

Meanwhile, The Daily Morning Business also contacted Ceylon National Chamber of Industries (CNCI) Chairman Canisius Fernando on the matter. 

He said that whenever the prices of utilities increase, the industries encounter problems as margins are eroded and the numbers cannot run, which ultimately results in the closing down of companies. 

He commented: “We cannot manage now. Diesel prices have gone up, then the electricity (tariff), and now the water (tariff), and taxes; what else is there to be increased? 

Meanwhile, The Daily Morning reported yesterday (20) Hotel Association of Sri Lanka (THASL) President M. Shanthikumar to have said: “They have placed the hotel industry on a super tariff where the increase is 27% more than that of any other industry. This is an unfair increase. Therefore, although electricity tariffs have increased, we are not in a position to increase rates.” 

Minister of Water Supply Jeevan Thondaman recently said that a water tariff hike is also likely while the Ministry is exploring alternatives such as renewable energy.