Dec 30, Colombo: Sri Lanka's Consumer Affairs Authority (CAA) says that the price of milk powder will be increased as several milk powder companies have sought a price hike.
Milk powder is considered an essential item in Sri Lanka and its price is controlled. The milk powder companies need the approval from the Consumer Affairs Authority to increase prices.
Sources say that the milk powder companies have sought a price increase of Rs. 250 per kilo. However, a spokesman of the Consumer Affairs Authority says that the price will not be increased so much.
The controlled retail prices for a 400 g pack of milk powder and 1kg pack of milk powder is Rs.325 and Rs.810 respectively.
There is a severe shortage of milk powder in Sri Lanka's retail and wholesale markets. Some producers have suspended distribution due to the losses.
Local milk food producer, state owned Milco is also affected since December 9 due to a strike launched by the employees demanding the removal of its chairman.