Sri Lanka’s State Minister of Finance says VAT increase has no major impact on the market

Recent increase in Value Added Tax (VAT) hasn’t caused significant disruptions in the market during the first few days of this month according to a study conducted by the Consumer Affairs Authority (CAA), State Minister of Finance Ranjith Siyambalapitiya informed Parliament today (January 10).

In response to a question raised by Samagi Jana Balawegaya (SJB) MP S.M. Marikar during the Prime Minister’s question session, State Minister Siyambalapitiya mentioned that the prices of coconut oil, red dhal, wheat flour, and certain types of rice have remained unchanged despite the VAT hike.

According to him, the price of a liter of coconut oil remained Rs. 600 both before and after the VAT increase, red dhal was priced at Rs. 320 per kilo, and wheat flour at Rs. 220 per kilo, all unaffected by the VAT increase.

He also noted that the price of an egg has decreased from Rs. 60 to Rs. 51 after the VAT increase.

State Minister Siyambalapitiya stated, “The market hasn’t reacted significantly to the VAT increase, although there is some excitement among MPs.” In response, MP

Responding to these remarks, MP S.M. Marikar mentioned that approximately 500 outlets of a major supermarket chain in the country have closed down after the new year due to a decline in their business.