No price increase on biscuits, ice cream, chocolate until May, industry assures

The Sri Lankan Confectionery Owners’ Association has assured the government that the prices of biscuits, ice cream, chocolate and other confectionery products will not be increased until May, following the discussions with Trade Minister Wasantha Samarasinghe.

The assurance was given during a meeting held on March 26, convened by Samarasinghe to discuss the impact of the current global situation, particularly the regional conflicts in the Middle East, on the confectionery industry and its potential effect on the consumers.

During the meeting, Samarasinghe said that the consumers are already burdened and cannot afford further increases in the prices of essential goods. He noted that the government aims to manage the impact of the global developments on the industry while safeguarding both the producers and consumers.

He further said that the government is prepared to intervene to address the challenges faced by the sector and emphasised that the consumer welfare must remain a priority, despite the ongoing difficulties.

Speaking at the discussion, Sri Lankan Confectionery Owners’ Association President S.M.D. Suriyakumara said the industry employs around 50,000 people directly and supports over 500,000 indirectly. He noted that the sector is largely self-sufficient, producing about 95 percent of the local market demand and has invested over Rs.15 billion in technology over the past decade.

He added that the industry continues to face challenges, due to the rising utility costs, including electricity and gas as well as the high cost of imported raw materials. Despite these pressures, he said the prices have not been increased since the COVID-19 period and businesses are currently operating on limited profit margins.

Suriyakumara said the industry is currently in its peak season, with the production and distribution underway for the Sinhala and Tamil New Year and the association has decided to maintain the current prices until the end of the festive period.

However, he warned that price revisions may be considered after May, if the utility and raw material costs continue to rise.

The association also highlighted delays in clearing the raw materials from the customs and additional shipping charges as ongoing concerns. It requested the government support to ensure uninterrupted fuel supply for distribution during the New Year period and to resolve the issues in the current system.