Amid soaring prices of rice locally, the Sri Lanka government has reversed its decision to import 100,000 MT of rice, citing forex constraints, and said they would instead regulate the price locally. 

“Sri Lanka does not expect to import rice, in an effort to protect local farmers and preserve foreign exchange,” J.M. Bhadranie Jayawardhana, secretary in the Ministry of Trade, was quoted as saying by The Morning newspaper. The decision came after a detailed discussion with relevant authorities, she added.

Market forces, she alleged, had artificially manipulated the price of rice. The government would take steps to break the monopoly that had led to this, she added. 

Sri Lanka’s foreign exchange reserve is in poor shape for the last few years. It has been borrowing to pay its interest on loans. The trade secretary said if they moved ahead with the import, it could lead to a forex crisis. So, the government will focus on price controlling measures, she added. 

“If the price control strategy suggestion is approved by the cabinet, the Ministry of Trade will proceed,” she was quoted as saying by The Morning. 

On the other hand, the country’s rice producers’ union also warned against the import, saying it would hurt medium and small mill owners in the country. Muditha Perera, the president of the United Rice Producers’ Union, said the import move will affect middle and low-income families rather than rice mill owners. 

(SAM)