• Latest
  • Trending

Why is food so expensive in Sri Lanka?

January 7, 2019
Ethiopian airlines flight misses landing as pilots fall asleep mid air

Ethiopian airlines flight misses landing as pilots fall asleep mid air

August 19, 2022
Colombo. Image credits - Jalitha Hewage @_llucifer_ / Unsplash

Land value in Colombo District accelerates in first half of 2022

August 19, 2022
Finnish PM Sanna Marin facing backlash over leaked party footage

Finnish PM Sanna Marin facing backlash over leaked party footage

August 19, 2022
Exchange Rate

Foreign Exchange Rates from Central Bank of Sri Lanka; USD, GBP, EUR, SGD, CAD

August 19, 2022
Emirates

Emirates airline suspends all flights to Nigeria

August 19, 2022
Kim Yo Jong, sister of North Korea's leader Kim Jong Un . Image credits - REUTERS/Jorge Silva/Pool/File Photo

North Korea tells South Korea president to ‘shut his mouth’ after offer of aid

August 19, 2022
Weather. Image credits - Wolfgang Hasselmann @wolfgang_hasselmann / Unsplash

Extreme heat is slamming the world’s three biggest economies all at once

August 19, 2022
Hadi Matar appears in court on charges of attempted murder and assault on author Salman Rushdie, in Mayville, New York, US, August 18, 2022. (Photo: Reuters)

Salman Rushdie attack suspect pleads not guilty to attempted murder, assault

August 19, 2022
Water cut. Image credits - Walter Randlehoff / Unsplash

10-hour water cut in areas of Colombo tomorrow

August 19, 2022
Apple

iOS 15.6.1—Update now warning issued to all iPhone users

August 19, 2022
Electricity

Power cut schedule today in Sri Lanka: 19th August

August 18, 2022
alcohol

Japan urges its young people to drink more to boost economy

August 18, 2022
  • About Us
  • Advertisements
  • Privacy Policy
  • Contact
Saturday, August 20, 2022
No Result
View All Result
NewsIn.Asia
  • Home
  • Around South Asia
    • All
    • Afghanistan
    • Bangladesh
    • Bhutan
    • China
    • India
    • Maldives
    • Myanmar
    • Nepal
    • Pakistan
    • Sri Lanka
    Colombo. Image credits - Jalitha Hewage @_llucifer_ / Unsplash

    Land value in Colombo District accelerates in first half of 2022

    Exchange Rate

    Foreign Exchange Rates from Central Bank of Sri Lanka; USD, GBP, EUR, SGD, CAD

    Water cut. Image credits - Walter Randlehoff / Unsplash

    10-hour water cut in areas of Colombo tomorrow

    Electricity

    Power cut schedule today in Sri Lanka: 19th August

    Subscribe to our Telegram channel for the latest updates from around the world. Image credits - Jinan Times

    Fish tested amid Xiamen covid outbreak in China

    Oil

    Myanmar buys Russian oil as emerging markets take shunned supply

    dollar

    Amnesty period announced to deposit/sell foreign currency in the hands of public

    Veteran journalist Sugeeswara Senadhira appointed Lankan Prime Minister’s Media Advisor

    Veteran journalist Sugeeswara Senadhira appointed Lankan Prime Minister’s Media Advisor

    Austria donates essential medicines to Sri Lanka

    Austria donates essential medicines to Sri Lanka

  • World
    • All
    • Japan
    • Russia
    • United Kingdom
    • United States
    Finnish PM Sanna Marin facing backlash over leaked party footage

    Finnish PM Sanna Marin facing backlash over leaked party footage

    Emirates

    Emirates airline suspends all flights to Nigeria

    Kim Yo Jong, sister of North Korea's leader Kim Jong Un . Image credits - REUTERS/Jorge Silva/Pool/File Photo

    North Korea tells South Korea president to ‘shut his mouth’ after offer of aid

    Weather. Image credits - Wolfgang Hasselmann @wolfgang_hasselmann / Unsplash

    Extreme heat is slamming the world’s three biggest economies all at once

    Hadi Matar appears in court on charges of attempted murder and assault on author Salman Rushdie, in Mayville, New York, US, August 18, 2022. (Photo: Reuters)

    Salman Rushdie attack suspect pleads not guilty to attempted murder, assault

    Apple

    iOS 15.6.1—Update now warning issued to all iPhone users

    alcohol

    Japan urges its young people to drink more to boost economy

    Oil

    Myanmar buys Russian oil as emerging markets take shunned supply

    Inflation

    UK inflation tops 10%, highest since 1982

  • Business
  • Politics
  • Sports
  • Entertainment
    • All
    • Books
    • Gaming
    • Movie
    • Music
    • Series
    Raksha Bandhan to Laal Singh Chaddha: ‘Struggling’ Bollywood’s online hate problem

    Raksha Bandhan to Laal Singh Chaddha: ‘Struggling’ Bollywood’s online hate problem

    Marvel has unleashed the first look teaser of Black Panther 2.

    Black Panther Wakanda Forever: Marvel pays emotional tribute to Chadwick Boseman

    Stranger Things

    Netflix confirms ‘Stranger Things’ spinoff and play

    Kamal Haasan's Vikram is on a rampage.

    Kamal Haasan’s Vikram is the highest-grossing film in Singapore, UK and UAE

    Harry Potter and the Philosopher's Stone

    ‘Harry Potter and the Philosopher’s Stone’ celebrates 25 magical years

    Salman Khan

    Plot to kill Bollywood actor Salman Khan revealed

    Shah Rukh Khan's Jawaan, to be directed by Atlee, to scheduled for June 2023 release. (Photo: Twitter)

    Shah Rukh Khan announces new film ‘Jawaan’

    Chchutir diner Gaan by Bangladeshi singer Nondita

    Chchutir diner Gaan by Bangladeshi singer Nondita

    Song “Bechain Nazar Betaab Jigar”. Talat Mahmood. Film “Yasmin” 1955

    Song “Bechain Nazar Betaab Jigar”. Talat Mahmood. Film “Yasmin” 1955

  • Lifestyle
    • All
    • Fashion
    • Food
    • Health
    • Science
    • Travel
    Austria donates essential medicines to Sri Lanka

    Austria donates essential medicines to Sri Lanka

    Digital. Image credits - Scott Graham @homajob / Unsplash

    In remote work and tech companies, job titles have gotten longer – and fancier

    Walk. Image credits - Arek Adeoye @areksan / Unsplash

    Why even 2 minutes of walking after a meal will improve your health

    Cheeseburger. Image credits - Alamy / BBC

    McDonald’s puts up price of cheeseburger for first time in 14 years

    WHO declares rapidly spreading monkeypox outbreak a global health emergency

    WHO declares rapidly spreading monkeypox outbreak a global health emergency

    Sushmita Sen. Image credits - Getty Images

    Sushmita Sen: Why ‘gold digger’ jibe caused outrage

    Honey. Image credits - Mariana Ibanez / Unsplash

    7 unique health benefits of honey

    alcohol

    Alcohol is never healthy for people under 40, study finds

    world’s happiest countries in 2022

    List of world’s happiest countries in 2022

    Emirates

    Emirates statement on operations at London Heathrow

    Trending Tags

    • Golden Globes
    • Mr. Robot
    • MotoGP 2017
    • Climate Change
    • Flat Earth
  • Tech
    Apple

    iOS 15.6.1—Update now warning issued to all iPhone users

    A view shows a bionic hand developed by COVVI, at Quayside Business Park in Leeds, Britain. (Photo: Reuters)

    Bionic hand can be updated with new gestures, anytime, anywhere

    FILE PHOTO: The Netflix logo is pictured on a television in this illustration photograph taken in Encinitas, California, U.S., January 18, 2017. REUTERS/Mike Blake/File Photo

    Disney overtakes Netflix in race for subscribers

    Samsung unveiled its new Galaxy Z Flip 4 and Z Fold 4 phones on Aug 10, 2022. (Photo: Samsung)

    5 things to know about Samsung’s new Galaxy Z Flip 4 and Galaxy Z Fold 4 foldable smartphones

    Image: WhatsApp

    WhatsApp’s new update makes it easier to avoid your friends

    Snapchat. Image credits - May Gauthier @maygauthier / Unsplash

    Snap launches tools for parents to monitor teens’ contacts

    Trending Tags

    • Sillicon Valley
    • Climate Change
    • Election Results
    • Flat Earth
    • Golden Globes
    • MotoGP 2017
    • Mr. Robot
  • Coronavirus
  • Videos
  • Home
  • Around South Asia
    • All
    • Afghanistan
    • Bangladesh
    • Bhutan
    • China
    • India
    • Maldives
    • Myanmar
    • Nepal
    • Pakistan
    • Sri Lanka
    Colombo. Image credits - Jalitha Hewage @_llucifer_ / Unsplash

    Land value in Colombo District accelerates in first half of 2022

    Exchange Rate

    Foreign Exchange Rates from Central Bank of Sri Lanka; USD, GBP, EUR, SGD, CAD

    Water cut. Image credits - Walter Randlehoff / Unsplash

    10-hour water cut in areas of Colombo tomorrow

    Electricity

    Power cut schedule today in Sri Lanka: 19th August

    Subscribe to our Telegram channel for the latest updates from around the world. Image credits - Jinan Times

    Fish tested amid Xiamen covid outbreak in China

    Oil

    Myanmar buys Russian oil as emerging markets take shunned supply

    dollar

    Amnesty period announced to deposit/sell foreign currency in the hands of public

    Veteran journalist Sugeeswara Senadhira appointed Lankan Prime Minister’s Media Advisor

    Veteran journalist Sugeeswara Senadhira appointed Lankan Prime Minister’s Media Advisor

    Austria donates essential medicines to Sri Lanka

    Austria donates essential medicines to Sri Lanka

  • World
    • All
    • Japan
    • Russia
    • United Kingdom
    • United States
    Finnish PM Sanna Marin facing backlash over leaked party footage

    Finnish PM Sanna Marin facing backlash over leaked party footage

    Emirates

    Emirates airline suspends all flights to Nigeria

    Kim Yo Jong, sister of North Korea's leader Kim Jong Un . Image credits - REUTERS/Jorge Silva/Pool/File Photo

    North Korea tells South Korea president to ‘shut his mouth’ after offer of aid

    Weather. Image credits - Wolfgang Hasselmann @wolfgang_hasselmann / Unsplash

    Extreme heat is slamming the world’s three biggest economies all at once

    Hadi Matar appears in court on charges of attempted murder and assault on author Salman Rushdie, in Mayville, New York, US, August 18, 2022. (Photo: Reuters)

    Salman Rushdie attack suspect pleads not guilty to attempted murder, assault

    Apple

    iOS 15.6.1—Update now warning issued to all iPhone users

    alcohol

    Japan urges its young people to drink more to boost economy

    Oil

    Myanmar buys Russian oil as emerging markets take shunned supply

    Inflation

    UK inflation tops 10%, highest since 1982

  • Business
  • Politics
  • Sports
  • Entertainment
    • All
    • Books
    • Gaming
    • Movie
    • Music
    • Series
    Raksha Bandhan to Laal Singh Chaddha: ‘Struggling’ Bollywood’s online hate problem

    Raksha Bandhan to Laal Singh Chaddha: ‘Struggling’ Bollywood’s online hate problem

    Marvel has unleashed the first look teaser of Black Panther 2.

    Black Panther Wakanda Forever: Marvel pays emotional tribute to Chadwick Boseman

    Stranger Things

    Netflix confirms ‘Stranger Things’ spinoff and play

    Kamal Haasan's Vikram is on a rampage.

    Kamal Haasan’s Vikram is the highest-grossing film in Singapore, UK and UAE

    Harry Potter and the Philosopher's Stone

    ‘Harry Potter and the Philosopher’s Stone’ celebrates 25 magical years

    Salman Khan

    Plot to kill Bollywood actor Salman Khan revealed

    Shah Rukh Khan's Jawaan, to be directed by Atlee, to scheduled for June 2023 release. (Photo: Twitter)

    Shah Rukh Khan announces new film ‘Jawaan’

    Chchutir diner Gaan by Bangladeshi singer Nondita

    Chchutir diner Gaan by Bangladeshi singer Nondita

    Song “Bechain Nazar Betaab Jigar”. Talat Mahmood. Film “Yasmin” 1955

    Song “Bechain Nazar Betaab Jigar”. Talat Mahmood. Film “Yasmin” 1955

  • Lifestyle
    • All
    • Fashion
    • Food
    • Health
    • Science
    • Travel
    Austria donates essential medicines to Sri Lanka

    Austria donates essential medicines to Sri Lanka

    Digital. Image credits - Scott Graham @homajob / Unsplash

    In remote work and tech companies, job titles have gotten longer – and fancier

    Walk. Image credits - Arek Adeoye @areksan / Unsplash

    Why even 2 minutes of walking after a meal will improve your health

    Cheeseburger. Image credits - Alamy / BBC

    McDonald’s puts up price of cheeseburger for first time in 14 years

    WHO declares rapidly spreading monkeypox outbreak a global health emergency

    WHO declares rapidly spreading monkeypox outbreak a global health emergency

    Sushmita Sen. Image credits - Getty Images

    Sushmita Sen: Why ‘gold digger’ jibe caused outrage

    Honey. Image credits - Mariana Ibanez / Unsplash

    7 unique health benefits of honey

    alcohol

    Alcohol is never healthy for people under 40, study finds

    world’s happiest countries in 2022

    List of world’s happiest countries in 2022

    Emirates

    Emirates statement on operations at London Heathrow

    Trending Tags

    • Golden Globes
    • Mr. Robot
    • MotoGP 2017
    • Climate Change
    • Flat Earth
  • Tech
    Apple

    iOS 15.6.1—Update now warning issued to all iPhone users

    A view shows a bionic hand developed by COVVI, at Quayside Business Park in Leeds, Britain. (Photo: Reuters)

    Bionic hand can be updated with new gestures, anytime, anywhere

    FILE PHOTO: The Netflix logo is pictured on a television in this illustration photograph taken in Encinitas, California, U.S., January 18, 2017. REUTERS/Mike Blake/File Photo

    Disney overtakes Netflix in race for subscribers

    Samsung unveiled its new Galaxy Z Flip 4 and Z Fold 4 phones on Aug 10, 2022. (Photo: Samsung)

    5 things to know about Samsung’s new Galaxy Z Flip 4 and Galaxy Z Fold 4 foldable smartphones

    Image: WhatsApp

    WhatsApp’s new update makes it easier to avoid your friends

    Snapchat. Image credits - May Gauthier @maygauthier / Unsplash

    Snap launches tools for parents to monitor teens’ contacts

    Trending Tags

    • Sillicon Valley
    • Climate Change
    • Election Results
    • Flat Earth
    • Golden Globes
    • MotoGP 2017
    • Mr. Robot
  • Coronavirus
  • Videos
NewsIn.Asia
No Result
View All Result
Home Business

Why is food so expensive in Sri Lanka?

Editor by Editor
January 7, 2019
in Business, Food, Sri Lanka, Top Story
Reading Time: 3 mins read
20 0
A A
33
SHARES
Share on WhatsApp

By Ravi Ratnasabapathy/www.research.advocata.org

Colombo, January 7:  Sri Lanka has a high cost of living. Data for August 2017 gathered by Numbeo, a crowd-sourced database, indicates that grocery prices are 34.48% higher (and consumer prices 25.22% higher) than in India.

Chicken is actually cheaper in Singapore than in Sri Lanka. Whole chicken retails for around Rs.425/-kg, while it is available in supermarkets in Singapore for around S$2.85 for 800g or Rs.412/kg. Unlike Sri Lanka, Singapore imports most of its food yet domestically produced chicken in Sri Lanka is marginally more expensive, even after taking into account Singapore’s higher rents and salaries.

ADVERTISEMENT

Compared to Malaysia, which does produce its own chicken it is even worse; chicken breast costs Rs.670/kg in Sri Lanka but only RM 12.99/kg in Malaysia equivalent to Rs.472/kg.

One reason for the high prices is tax, Sri Lanka’s Government taxes food, sometimes quite heavily.

Chicken prices are high in Sri Lanka because of the high taxes levied on the raw materials used in poultry feed. The two main ingredients maize and soybean meal are taxed at an effective rate of 90% and 45%, respectively. (This is the total tax made up of duty, PAL, VAT, NBT , Cess.)

The Government imposes these taxes to promote the domestic cultivation of these crops, neither of which were cultivated on a mass scale until recently. In terms of stimulating production, the strategy has worked: the country produces around 200,000mt of maize and 30,000mt of soybeans but at a huge cost to consumers who have to pay higher prices for chicken.

The protection is generally justified on the grounds of promoting local production but in the case of wheat, protection is even extended to domestic processors of imported wheat grain.

Sri Lanka does not grow wheat as its climate is unsuitable so the entirety is imported. Wheat is the second most important cereal consumed after rice and its importance is growing as consumption is increasing. Lifestyle changes due to urbanisation, increase in the number of working mothers and the demand for convenience foods are some of the factors that are driving growth.

A high tax applies on wheat flour (effectively around 85%) while a lower tax (effectively around 23%) applies on wheat grain. This results in a high effective protection for domestic wheat millers who import the grain and grind it to flour.

The millers are able to earn a significant excess profit (termed a “rent” in economics) due to the differential in taxes between grain and flour. The local millers are able to sell flour at high prices because the duty keeps the price of imported flour high. The apparent anomaly is no accident but the result of lobbying by industry groups to protect local industry.

The result of these policies is that wheat flour costs Rs.92/kg in Sri Lanka but is available for Rs.49/kg (RM 1.35/kg) in Malaysia. World wheat prices (along with other commodities) have fallen 50% since 2013 but the price of bread in Sri Lanka keeps rising.

These but two examples, there are plenty of others as recent policy has been directed towards import substitution both in agriculture and industry.

A second reason for the high levels of tax is revenue. Government spending has grown by leaps and bounds: between 2010-2015 total expenditure grew by 81.5%. The Government has sought ever more innovative ways to tax in order to support the growth in expenditure.

A basic principle of tax is that if revenue is to be raised, the most effective way to do so is to tax essentials. People have limited options with essentials so consumption does not drop significantly when taxes are raised.

This is why the Government has chosen to tax food. Sri Lanka’s Government earns substantial revenue through food taxes. The Special Commodity Levy (SCL), which usually applies to food earned the Government Rs55.8bn in 2016.

The public is unaware of the extent to which food is taxed, so we have compiled a table showing the tax on basic foodstuffs. The results are surprising, even shocking. Import taxes add Rs.130 to a bottle of cooking oil, Rs.880 to a kg of butter, Rs.625 to a kilo of yoghurt. The table gives details of the taxes.

 

Tax
Rs./kg
Remark

Related Posts

Colombo. Image credits - Jalitha Hewage @_llucifer_ / Unsplash
Around South Asia

Land value in Colombo District accelerates in first half of 2022

August 19, 2022
Exchange Rate
Around South Asia

Foreign Exchange Rates from Central Bank of Sri Lanka; USD, GBP, EUR, SGD, CAD

August 19, 2022
Water cut. Image credits - Walter Randlehoff / Unsplash
Around South Asia

10-hour water cut in areas of Colombo tomorrow

August 19, 2022
Electricity
Around South Asia

Power cut schedule today in Sri Lanka: 19th August

August 18, 2022
Oil
Around South Asia

Myanmar buys Russian oil as emerging markets take shunned supply

August 18, 2022
dollar
Around South Asia

Amnesty period announced to deposit/sell foreign currency in the hands of public

August 18, 2022
  • Electricity

    Power cut schedule today in Sri Lanka: 19th August

    49573 shares
    Share 19842 Tweet 12388
  • Registration open for National Fuel Pass

    6551 shares
    Share 2658 Tweet 1622
  • Foreign Exchange Rates from Central Bank of Sri Lanka; USD, GBP, EUR, SGD, CAD

    1413 shares
    Share 572 Tweet 351
  • WATCH : Yohani’s first live performance in India

    785 shares
    Share 327 Tweet 191
  • Power interruption schedule released: Check your area power cut time

    734 shares
    Share 312 Tweet 176
  • About Us
  • Advertisements
  • Privacy Policy
  • Contact

© 2022 All rights reserved.

No Result
View All Result
  • Home
  • Around South Asia
    • Afghanistan
    • Bangladesh
    • Bhutan
    • China
    • India
    • Maldives
    • Myanmar
    • Nepal
    • Pakistan
    • Sri Lanka
  • Around The World
  • Breaking News
  • Business
    • Exchange
  • Climate Change
  • Governance
    • Crime
    • Diplomacy
    • Defense
    • Human Rights
    • Politics
    • Strategic Affairs
  • Lifestyle
    • Books
    • Entertainment
      • Arts
      • Cinema
      • Gaming
      • Music
      • Movie
      • Series
      • TV
    • Health
    • Fashion
    • Food
    • Travel
  • Culture
    • Ethnicity
    • Gender
  • Development news
  • Economy
  • Education
  • Environment
  • Coronavirus
  • History
  • National
  • Offbeat
    • Media
    • Music and arts across South Asia
  • Recommended
    • Headlines
    • Highlights
    • Top Picture
    • Top Story
  • Religion
  • Science
  • Sports
    • Football
    • Cricket
      • LPL
      • IPL
    • Tennis
    • Formula 1
    • NBA
  • Tech
    • Instagram
  • United Nations
  • Weather
  • World
    • Japan
    • Russia
    • United States
  • Videos

© 2022 All rights reserved.

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

mersin eskort - eskisehir escort -

https://www.vudols.com/

- Sağlık Personeli - istanbul avukat