The Hon. Sunil Handunnetti - Minister of Industry and Entrepreneurship Development
The Minister defended the continued use of Orders under the Special Commodity Levy Act, stating that six-monthly revisions are necessary in current economic conditions to balance farmer and consumer interests despite past abuses associated with the levy. He tabled a Sathosa report on 38 SCL-related consumer items, arguing that prices of 25 items had fallen between January 2024 and January 2025, with an average reduction of about 19 per cent, including decreases in big onions, chickpeas, dried chillies, green gram, cowpea, potatoes and sprats. He acknowledged ongoing rice supply concerns but said separate action was being taken by the Trade Minister, and noted that the Government had been in office for only 49 days.
Verbatim record (translated)
Machine-translated from Sinhala / Tamil / English¶ 01 Hon. Deputy Speaker, the main matter today is the Orders made under the Special Commodity Levy Act. These revisions are presented roughly every six months, especially in the current economic context, to protect farmers and consumers. Because VAT decisions are structured and linked to statute, these SCL adjustments operate on a six-month cycle.
¶ 02 We recall the abuses we highlighted from the Opposition benches: scams under the SCL, like the sugar tax fraud and the big onion affair. Some claimed the SCL would be abolished, but it remains because of practical necessity. Under the current economic conditions, the SCL has delivered relief to the people.
¶ 03 On the much-discussed issue of staple consumer prices, especially rice, the Trade Minister is acting to address supply problems. Independently, SCL-based relief has reached the people. I have obtained a report from the Chairman of Sathosa, which I now table. It covers 38 consumer items (subject to SCL) sold through Sathosa. From January 2024 to January 2025, only about eight items increased in price; 25 items fell.
¶ 04 Examples: - Big onions: Jan 2024 price Rs. 440/kg; now Rs. 198/kg, a drop of Rs. 242 or 55%. In August 2024 it was Rs. 285; now Rs. 198. - 425g canned tuna: Rs. 475 then; now Rs. 380 (down Rs. 95 or 20%). - Chickpeas: Rs. 535 then; now Rs. 428 (down Rs. 107 or 20%). - Dried chilies: about Rs. 1,290/kg then; now Rs. 845 (down Rs. 445 or 34%). - Green gram: Rs. 1,095 then; Aug 2024 Rs. 965; now Rs. 640 (down Rs. 455 from Jan 2024). - Cowpea: Rs. 1,250 then; now Rs. 795 (down Rs. 455). - Potatoes: Rs. 280 then; now Rs. 210 (down Rs. 70). - Sprats: Rs. 1,200 then; now Rs. 960 (down Rs. 240). - Local cashew: Rs. 1,475 then; now Rs. 1,095 (down Rs. 380).
¶ 05 On average, across these essential goods, prices have declined by about 19% from January 2024 to January 2025; from August 2024 to now, about 8%. Prices of around 5 items remained unchanged. While there were issues with rice, these are all essential items, and the relief is evident through the Sathosa network where 25 categories have dropped.
¶ 06 We convened this Parliament on 21 November; today marks seven weeks, or 49 days. The NPP Government has been here for 49 days. Some ask why the five-year programme is not completed in 49 days. I thank the Opposition for their confidence in assuming we can do five years’ work in 49 days.
Provenance
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- Hansard, Thursday, 9 January 2025 ·No. 1738229262040729 ·English daily/uncorrected Hansard
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Cite as: The Hon. Sunil Handunnetti - Minister of Industry and Entrepreneurship Development. 10th Parliament, Parliament of Sri Lanka. Hansard, 9 January 2025. No. 1738229262040729. Politick, https://staging.politick.io/lk/speeches/23703