• Housewives & residents bemoan lack of institutional authorities’ remedial action including & beyond the F&B sector 
• Consumer activists call for a PTF & across the board MRP controls  
• Small-scale businesses note impracticality of such ‘frequent reductions’ citing supply chain issues

Despite significant reductions in fuel, liquefied petroleum gas (LPG), and electricity tariffs in the recent past, consumers across the country are not experiencing corresponding decreases in the prices of essential goods and services. The persistent issue has raised widespread frustration, with many pointing out that the Ministry of Trade, Commerce and Food Security, and the Consumer Affairs Authority (CAA) and the other relevant institutions have not implemented effective measures to ensure that the benefits of price reductions are passed on to the public. 

The current situation highlights the need for stronger regulatory actions and more proactive measures to protect consumer interests and promote fair pricing practices across all sectors, as many households and businesses struggle with unchanged costs despite the potential for savings.

A housewife from Ratnapura, Hema Kadiragamage voiced the lack of change in the prices of household items to The Daily Morning, despite significant reductions in fuel and LPG, and electricity tariffs. Despite public announcements from the CAA promising action against traders who fail to reduce prices, she has seen no actual measures being implemented. "The prices for everyday essentials like rice, potato, sugar, dhal, and onion are still the same. There's been no change at all," she remarked. She pointed out that traders typically do not feel a sense of urgency to adjust prices, particularly when it is required to lower them. "Most businessmen, except for a very few, aim to make a profit by any means necessary, whether fair or unfair. This is why institutions like the CAA exist. But, if all they do is issue press releases asking for price reductions, it raises the question of their usefulness," she further highlighted the challenges faced by rural residents, who often lack the knowledge to contact the CAA to file complaints against vendors who do not lower prices. "People in rural areas are not well-informed about how to reach out to the CAA and lodge complaints. As a result, they end up buying goods at the existing prices, regardless of whether they are fair or unfair. This is why the CAA should proactively come into the field to assess the market situation instead of waiting for complaints."

A resident of Meegoda, Sudheera Pramod shared with The Daily Morning his concerns about the narrow focus on food and beverages when it comes to price concessions. He said that since many services beyond food and beverages (F&B) incur significant costs, the relevant institutions should also ensure that their prices decrease in cases such as electricity tariff reductions. "Food is just one of our many needs. Besides that, there are numerous other necessities. For instance, services like getting a haircut, and private hospital visits also come at a cost," he explained. He pointed out that such service providers often raise their charges in response to increased electricity rates, but do not lower them when electricity rates decrease. He emphasised the need for a comprehensive plan to ensure fair pricing across all services, suggesting that the relevant institutions such as the CAA should work towards both short- and long-term solutions to protect consumers. "If there isn't a short-term programme to prevent consumers from being affected in this way, then the relevant institutions should develop a long-term strategy. While it may be impractical for all levels of service providers to maintain a similar fee structure, it is at least needed to establish measures to prevent extremely unfair fee charging."

Small-scale hotelier (his small-scale hotel in Udawalawe has accommodation facilities and a restaurant), Leel Kumara highlighted to The Daily Morning the impracticality of frequently revising prices for goods and services to match rapid tariff changes. He explained that price adjustments cannot be made unless the entire supply chain associated with a particular service is updated, rather than just one segment of it. "For instance, I run a small-scale hotel. While it's true that electricity tariffs and LPG prices have decreased, I purchase the ingredients needed to provide food to customers from the market. If the prices of goods in that market don't drop, how can I lower the prices of food at my hotel?” He questioned. Leel emphasised that it takes time for the benefits of electricity tariff revisions and reductions of prices of commodities such as LPG and fuel, to reach every level of the supply chain. However, he said that tariffs are now revised so frequently — in most cases within just three months — that customers hardly have the chance to benefit from one reduction before another occurs.

While several factors such as the appreciation of the Sri Lankan Rupee against the United States Dollar, the removal of import restrictions, and subsequent tariff reductions could potentially benefit the economy, everyday experiences tell a different story. For instance, even the cobbler has increased their fees, citing rising living costs. This trend extends to various services; a visit to the garage now comes with a hefty price tag. Despite the reduction in minimum bus fares by Rs. 2, the benefit seems negligible to the passengers. Moreover, less-talked-about services such as cremation and public toilet facilities have also seen price increases. The costs remain high, reflecting a disconnect between economic policies and their actual impact on the daily lives of the people.

Consumer rights activist Asela Sampath responded to The Daily Morning by placing the blame for consumers not reaping the benefits of reduced commodity prices and tariff reductions squarely on the Ministry of Trade and the CAA. "In recent months, we've seen multiple reductions in LPG prices, significant drops in fuel prices, and most recently, a decrease in electricity tariffs. Despite all this, consumers are not benefiting because the relevant institutions are not taking effective steps to pass these savings on to the people," he said, and further alleged that certain officers within the CAA are living comfortably by making deals with large-scale traders, thus failing to uphold their duty to protect consumer interests. To address this situation, he called for the immediate establishment of a Presidential Task Force (PTF) and the imposition of maximum retail prices (MRPs) for every product and service possible. "The President's intervention is essential to solve this problem because the majority of the people are being exploited by allowing traders and service providers to sell goods and provide services at arbitrary prices without any control or regulation," he charged. Sampath also criticised the lack of action from the political opposition. "There is an opposition, but, has anyone seen them talking about the unfair prices of goods? No. They are all part of this black market system. They always say that they will prosecute thieves and build the country, but, before catching thieves and building the country, they need to create an environment where people can live a better life by enhancing their purchasing power."

The ongoing issue of stagnant prices despite reductions in fuel, LPG, and electricity tariffs has highlighted the inefficacy of the current regulatory measures in Sri Lanka. Consumers, small-scale business owners, and activists alike are calling for immediate and decisive action from the relevant authorities. The need for a comprehensive strategy to ensure fair pricing across all sectors is clear, with suggestions for the establishment of a PTF and the imposition of MRPs gaining traction. Without such reforms, the promise of benefits from reduced tariffs and prices will remain unfulfilled, leaving consumers to bear the brunt of unfair practices of traders.